Making a good purchasing decision requires

On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a thr

nekit [7.7K]

Answer:

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

2. December 31,2021

Dr Interest expense 510

Cr Interest Payable 510

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

Dr Notes Payable 51000

Cr Cash 51,765

Explanation:

Preparation of to record the necessary entries

1. November 01,2021

Dr Cash 51000

Cr Notes Payable 51000

(Being to Record the issuance of note)

2. December 31,2021

Dr Interest expense 510

(51,000*6%*2/12)

Cr Interest Payable 510

(Being to record the adjustment for interest)

3. February 01,2022

Dr Interest expense 510

Dr Interest Payable 255

(51,000*6%*1/12)

Dr Notes Payable 51000

Cr Cash 51,765

(510+255+51000)

(Being to Record the repayment of the note at maturity)

6 0

2 years ago

Answer the following questions about prepaid expenses:

pochemuha

Answer:

the numbers are missing, so I looked for a similar question:

a. On 1, Tree Service prepaid $7,200 for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.

Dr Rent expense 1,200 (= $7,200 / 6)

Cr Prepaid rent 1,200

Balances:

Prepaid rent 6,000

Rent expense 1,200

b. On 1, Tree Service paid $1,050 for supplies. At 31, has $400 of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.

Dr Supplies expense 650 (= $1,050 - $400)

Cr Supplies 650

Balances:

Supplies 400

Supplies expense 650

c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.

SAME AS QUESTION A

6 0

3 years ago

You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and

Vinil7 [7]

Answer:

B. your demand for peanut butter increases today.

Explanation:

7 0

3 years ago

Costs that do not change in total over wide ranges of volume. 2. Technique that estimates profit or loss results when conditions

likoan [24]

Complete Question:

Match the terms with the correct definitions.

Answer:

1. Fixed costs: Costs that do not change in total over wide ranges of volume.

2. Sensitivity analysis: Technique that estimates profit or loss results when conditions change.

3. Breakeven point: The sales level at which operating income is zero.

4. Margin of safety: Drop in sales a company can absorb without incurring an operating loss.

5. Sales mix: Combination of products that make up total sales.

6. Contribution margin: Net sales revenue minus variable costs.

7. Cost behavior: Describes how a cost changes as volume changes.

8. Variable costs: Costs that change in total in direct proportion to changes in volume.

9. Relevant range: The band of volume where total fixed costs and variable cost per unit remain constant.

Explanation:

It is required that each term are matched with their respective correct definitions. The terms are generally associated with business and sales management.

For instance, fixed costs are indirect costs that do not change in total over wide ranges of volume and irrespective of the level of output (goods and services) e.g rent, salaries, property tax, insurance, depreciation etc.

Also variable costs are costs that change in total in direct proportion to changes in volume of goods and services e.g sales commission, utility costs, raw materials costs, credit card fees, direct labour costs etc.

3 0

3 years ago

Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company’s income statement s

Anestetic [448]

Answer:

BEP 2016: $ 1,700,000

BEP 2017:

under proposition a)

contribution margin:

(2,310,000 * 1.25 - 924,000) / 2,310,000 * 1.25 = 1,500,000

under porposition b)

fixed cost decrease by: 197,000 - 40,000 = 157,000

contribution margin decrease by 5% to 55%

(1,020,000 - 157,000) / (0.6 - 0.05) = 1,569,090.90

under proposition c)

We distrubute the same cost but now 50% is fixed and 50% variable:

1,944,000 x 50% = 927,000

contribution margin:

2,310,000 - 927,000 = 1,383,000

ratio: 1,383,000 / 2,310,000 = 0.5987

BEP

927,000 / 0.5987 = 1,548,354.77

Explanation:

Break even point formula:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Where:

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

Sales: 2,310,000

Variable cost: 924,000

Contribution: 2,310,000 - 924,000 = 1,386,000

Contribution ratio: 1,386,000 / 2,310,000 = 0.6

Fixed cost: 1,020,000

BEP 2016

1,020,000 / 0.60 = 1,700,000

6 0

3 years ago