Jonah had $25 to spend. He

How do changes in the environment affect businesses and thus consumers?

fiasKO [112]

Answer:

If the environment changes then the businesses will make products you need in that environment so consumers will buy more of that product because they need it. For example, if it's summer you need new summer clothes so companies will start to make summer clothes so people will buy them instead of winter or fall clothes because of the environment. So businesses are getting money and the consumers are getting what they need or want.

8 0

2 years ago

Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments

balu736 [363]

Answer:

a.

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

b. Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

c. Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

Explanation:

a. The journal entries, that should be recorded on January 1, and December 31, 2017, by Steel would be as follows:

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

Lease Equipment Under Capital Leases=(40,000*PVIFA(10%,Years = 40,000*4.16986))= $166,794

b. The journal entries, that should be recorded on January 1 and December 31, 2018, by Steel would be as follows:

Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

Depreciation Expense= (166,794/7)=$23,828

Interest Expense [(166,794 - 40,000)*10%]=$12,679

Lease Liability=(40,000 - 12,679)=$27,321

c. The journal entries, that should be recorded on January 1, and December 31, 2019, by Steel would be as follows:

Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. The amounts that would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement would be as follows:

Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

8 0

3 years ago

Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad

Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0

3 years ago

What does surplus mean in Economics?

jenyasd209 [6]

A surplus is used to describe many excess assets including income, profits, capital and goods. A surplus often occurs in a budget, when expenses are less than the income taken in or in inventory when fewer supplies are used than were retained. Economic surplus is related to supply and demand

6 0

3 years ago

Dybala Corporation's produces and sells a single product. Data concerning that product appear below The company is currently sel

CaHeK987 [17]

Answer: Increase of $8,200

Explanation:

Currently, the company is making a net operating income of;

= Contribution Margin - Fixed expenses

= (90 * 6,700) - 547,700

= $55,300

If the company advertises, net operating income becomes;

= Contribution margin with increase in sales - Fixed expenses including advertisements

= (90 * (6,700 + 170)) - (547,700 + 7,100)

= $63,500

Increase in operating income = 63,500 - 55,300

= $8,200

6 0

3 years ago