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Vika [28.1K]
4 years ago
13

Different prices are commonly charged to different groups of consumers for tickets at movie theaters, whereas the groups are cha

rged the same prices for food and candy at the concession stands. The economic explanation for pricing tickets and concession items in this manner is that:
Business
1 answer:
ankoles [38]4 years ago
4 0
I think the explanation of this manner is that the concession items have a high-profit margin. It has more sales than the theater tickets. So to avoid the possible losses of income, the theater decides to make the prices of each item of concession stand must be the same to a different group of people. 
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4 0
2 years ago
If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenari
saw5 [17]

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1. Export the good

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4 years ago
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4 years ago
Aaron Lynch Company has the following balances in selected accounts on December 31, 2019.
hichkok12 [17]

Answer:

The adjusting entries are sufficiently explained in the explanations below. Thank you.

Explanation:

The question is to determine the adjusting entries that are required for the accounts of Aaron Lynch Company for 31 Dec,2019

1) Paid $2,700 for 12 Months insurance cover in June, 2019

Insurance cover for 2019 = 7 monhts (June - Dec)/12 x $2,700= $1,575

Prepaid Insurance for 2020 = 5/12 x $2,700 = $1,125

2)Service Fee Collected for Consulting Services Dec 1, 2019 - March 31,2020

Service Fee for 2019 = 1 months/ 4 Months x $40,000 = $10,000

Unearned for 2020 = 3/ 4 months x $40,000 = $30,000

3)$900 woth of supplies are on hand

This is supply expenses

Based on these calculations, the adjusting journal entries are as follows

Date                                    Description               Debit            Credit

December, 31, 2019          Prepaid Insurance     1125

                                       Insurance Expense                          1,125

Being the record of Prepaid insurance for 2020

December, 31, 2019          Service Revenue      30,000

                                       Unearned Service Revenue             30,000

Being the record of unearned service revenue up till march,  2020

December, 31, 2019          Supplies                        900

                                       Supplies Expense                              900

Being the record of service revenue on hand December 31, 2020

7 0
3 years ago
Read 2 more answers
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