Labor, any work done to produce goods and services
It’s the value of the next best alternative when a decision is made, so not the first desired choice, but the second one
Answer: $116.026
Explanation:
Given the following ;
Yearly hazard insurance = $350
Keisha is the buyer and the closing date of transaction is September 1 of the year.
January 1 till September 1 = 244days
Now Keisha will have to credit John from September 2 till December 31st of that year
Therefore,
September 2 till December 31 = 365 - 244 = 121 days
Daily hazard insurance = $350 ÷ 365 = $0.9589
Keisha's share = $0.9589 × 121 = $116.026
Answer:
The Journal entries are as follows:
(a) On June 1,
Cash A/c Dr. $5,830
To common stock $5,830
(To record the issue of common stock for cash)
(b) On June 2,
Equipment A/c Dr. $1,550
To accounts payable $1,550
(To record the purchase of equipment on account)
(c) On June 3,
Rent expense A/c Dr. $560
To cash $560
(To record the rent expense)
(d) On June 12,
Accounts receivable A/c Dr. $510
To Welding service revenue $510
(To record the welding service revenue)