All categories

3 years ago

_____ refers to what each party gets in exchange for his or her promise under a contract.

1 answer:

4 0

Consideration refers to what each party gets in exchange for his or her promise under a contract. A contract has four elements: agreement, consideration, contractual capacity, and legal object. Agreement refers to the contract itself, consideration to the results of the contract, contractual capacity represents your legal ability to sign the contract, and legal object is the purpose of the agreement.

You might be interested in

a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adj

Pavel [41]

Answer:

a1. Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

a2. $24,000

b2. December 31

Dr Wages Expenses $440

Cr Wages payable $440

Explanation:

a1. Preparation of the adjusting entry for the first year using the straight-line depreciation method.

Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

($40,000/5 years)

a2. Computation of the book value at the end of the second year of the equipment's life.

First step is to calculate the First year Book value

First year Book value=$40,000/5 years

First year Book value=$8,000

Second step is to calculate the Second year Book value

Second year Book value=($40,000+$40,000)/5 years

Second year Book value=$80,000/5 years

Second year Book value=$16,000

Now let compute the book value at the end of the second year of the equipment's life.

Book value at the end of the second year=$8,000+$16,000

Book value at the end of the second year=$24,000

Therefore the Book value at the end of the second year will be $24,000

b1. Preparation of the adjusting entry on December 31

December 31

Dr Wages Expenses $440

Cr Wages payable $440

($2,200/5 years)

3 0

2 years ago

1. Consider an economy with a population of 100,000 households. 60 percent of households reportan annual income of $25,000 ("low

Leona [35]

Answer:

The total income earned by households in this economy is:

$4,700,000,000

Explanation:

a) Data and Calculations:

Household population = 100,000

Low earners = 60% with annual income of $25,000 each

Mid earners = 30% with annual income of $70,000 each

High earners = 10% with annual income of $110,000 each

60% of the population = 60,000 (100,000 * 60%) households

30% of the population = 30,000 (100,000 * 30%) households

10% of the population = 10,000 (100,000 * 10%) households

Total income earned by the households:

Low earners = 60,000 * $25,000 = $1,500,000,000

Mid earners = 30,000 * $70,000 = 2,100,000,000

High earners = 10,000 * $110,000 = 1,100,000,000

Total income earned in the economy $4,700,000,000

3 0

2 years ago

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the follo

GalinKa [24]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The company's activity-based costing system has the following seven activity cost pools:

Labor-related $ 19,600 10,000 direct labor-hours

Machine-related $ 7,000 7,000 machine-hours

Machine setups $ 23,400 600 setups

Production orders $ 16,500 500 orders

Product testing $ 22,400 800 tests

Packaging $ 62,900 3,700 packages

General factory $ 60,000 10,000 direct labor-hours

Activity rate= total estimated activity cost for the period/ total amount of allocation base:

Labor-related= 19600/10000= $1.96

Machine related= 7000/7000= $1

Machine setups= 23400/ 600= $39

Production orders= 16500/500= $33

Product testing= 22400/800= $28

Packaging= 62900/3700= $17

General factory= 60000/10000= $6

7 0

3 years ago

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the

damaskus [11]

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. 9.60% is the rate of return on the trust fund.

FV = Future Value

PV = Present Value

r = rate of interest

n= no of period

FV/ PV = (1 + r )^n

5000/2000 = (1 + r%)^10

2.5 = (1 + r%)^10

r = 9.60%.

The rate of return is the net profit or loss of an investment over a period of time, expressed as a percentage of the original cost of the investment. 1 When calculating the rate of return, find the percentage change from the beginning of the period to the end of the period.

Learn more about the rate of return at

brainly.com/question/3578105

#SPJ4

7 0

1 year ago

Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,600,000. Suppose management projects that

MariettaO [177]

Answer:

<u>Budgeted Income Statement for each of the four quarters and for the entire year</u>

Quarter 1st 2nd 3rd 4th

Sales $4,738,000 $5,069,660 $5,323,143 $5,536,069

Cost of Sales ($2,132,100) ($2,281,347) ($2,395,414) ($2,491,231)

Gross Profit $2,605,900 $2,788,313 $2,927,729 $3,044,838

Operating Costs ($1,421,400) ($1,520,898) ($1,330,786) ($1,107,214)

Operating Profit $1,184,500 $1,267,415 $1,596,943 $1,937,624

Explanation:

Pay attention to the calculation of the following amounts :

Sales - These are based on increments per quarter
Cost of Sales - The Cost for quarter is at 45% of Revenue
Operating Costs - Based on Sales amounts ( 30 % in the first two quarters , 25% in third and 20% in the 4th quarter.)

6 0

3 years ago