1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spayn [35]
3 years ago
14

During a company's first year, the asset account, Office Supplies, was debited for $2,600 for the purchases of supplies. At year

-end, office supplies on hand were counted and determined to be $975. The proper adjusting entry crediting supplies and debiting supplies expense will
Business
1 answer:
Sauron [17]3 years ago
4 0

Answer:

Supplies Expense 1625 Dr

    Supplies Account   1625 Cr

Explanation:

First, we need to determine the supplies expense for the period. The supplies expense can be calculated by deducting the year end supplies balance from the supplies account balance.

The supplies expense = 2600 - 975 = $1625

The adjusting entry that will be made at the end of the period is,

Supplies Expense 1625 Dr

    Supplies Account   1625 Cr

You might be interested in
Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later
Evgesh-ka [11]

Answer:

D. The payback period is less than 2 years.

Explanation:

Discount rate                 5%  

                                        0      1          2

intital investment        -10  

cash flow                       0        30

Total cash flow         -10      0        30

NPV                        17.21  

IRR                                 73%  

Therefore, The NPV is 17.21 and is positive, the statement is True.

IRR > 50%, Therefore the statement made is True

Accounting rate of return = {[(30 - 10)/10]^(1/2)} - 1

                                           = 41% > 0

Therefore, The statement made is true.

Payback period = 2 years, Therefore the statement made is NOT true.

7 0
3 years ago
Exercise Bicycle Company is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of $1.50, and a dividend in year
prisoha [69]

Answer:

E.  $40.68

Explanation:

The computation of the stock worth today is shown below:

= (Dividend in year 1 ÷ 1 + required rate of return^number of years ) + (Dividend in year 2 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years)  + (Dividend in year 3 ÷ 1 + required rate of return^number of years) × (1 + growth rate) ÷ (required rate of return - growth rate)

= $1.2 ÷ 1.14 + $1.5 ÷ 1.14^2 + $2 ÷ 1.14^3 + $2 ÷ 1.14^3 × (1 + 10%) ÷ (14%-10%)

= $40.68

We simply applied the above formula

3 0
3 years ago
Hubert lives in San Francisco and runs a business that sells boats. In an average year, he receives $842,000 from selling boats.
aev [14]

Answer:

Explicit costs are normal costs of operating a business.

Implicit costs are opportunity costs meaning that they are the benefits foregone by engaging in a certain course of action.

The wholesale cost for the pianos that Hubert pays the manufacturer ⇒ EXPLICIT COST.

The salary Hubert could earn if he worked as an accountant ⇒ IMPLICIT COST.

The wages and utility bills that Hubert pays ⇒ EXPLICIT COST

The rental income Hubert could receive if he chose to rent out his showroom. ⇒ IMPLICIT COSTS

Accounting Profit = Revenue - Explicit costs

= 842,000 - 452,000 - 301,000

= $89,000

Economic Profit = Revenue - Explicit costs - Implicit costs

= 842,000 - 452,000 - 301,000 - 38,000 - 48,000

= $3,000

If Hubert's goal is to maximize his economic profit, he <u>should</u> stay in the piano business because the economic profit he would earn as an accountant would be -$3,000.

<em>Economic profit as accountant = Salary + rental income - accounting profit from piano</em>

<em>= 48,000 + 38,000 - 89,000</em>

<em>= -$3,000</em>

6 0
2 years ago
Christopher works for Ocean Media Inc., a large corporation. His work requires him to travel extensively and, as a result, he sp
GREYUIT [131]

Answer:

A. moral hazard

Explanation:

Based on the information provided within the question it can be said that this scenario is perfectly exemplifying the term known as a moral hazard. This refers to when an individual takes more risks because someone else is bearing the costs. Such as in this scenario, Christopher is an employee and should be working on company tasks but instead works on his own projects because the company cannot check up on him, which is morally wrong and he can get fired for it.

3 0
3 years ago
What is the typical relationship between time and interest rate?
melamori03 [73]
<span>Time and interest rates are directly related to one another. When paying a loan that accures interest, the longer it takes for you to pay the loan back, the more interest you are going to pay on that loan. Over time, the interest adds up and can be a large sum of money, if you want to pay a lower amount of interest, it is often beneficial to pay off the loan in a quicker amount of time. </span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Muldoon Advertising has an opening balance in its supplies account of $2,400 and purchases $3,000 of supplies during the year. A
    15·1 answer
  • You are given the following information for Lightning Power Co. Assume the company’s tax rate is 24 percent. Debt: 19,000 6.8 pe
    14·1 answer
  • 1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is m
    14·1 answer
  • Matt inherited as a trust a fifteen-year annuity-immediate with annual payments. He has been told that the annuity payments earn
    5·1 answer
  • Vicki is an independent insurance agent who has seen little increase in her revenues over the last two years. Her main marketing
    10·1 answer
  • Which of the following positions is primarily responsible for raising capital and investing funds?A) The treasurerB) The COOC) T
    13·1 answer
  • Question 8 (1 point)
    14·2 answers
  • A publisher faces the following demand schedule for the next novel from one of its popular authors:
    13·1 answer
  • Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,000 in investment expenses. T
    15·1 answer
  • Which rule requires that contracts that would normally fall under the statute of frauds and need writing if negotiated by the pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!