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sertanlavr [38]
3 years ago
13

Below are transactions for Wolverine Company during 2021.

Business
1 answer:
Ivanshal [37]3 years ago
4 0

Answer:

Check the explanation for the answer

Explanation:

Wolverine Company

Adjusted journal entries for the year ended 31st December 2021.

<u>DATE         PARTICULARS                                    DEBIT ($)   CREDIT ($)</u>

1/12/2021 Rent receivable                                        4000

                       Deferred revenue                                                          4000

                      Being the correction of rent deferred

                      revenue

1/7/2021        Insurance expenses                                13200

                     Prepaid insurance                                                            13200

                     Being the correction of error of prepaid

                     insurance      

1/1/2020      Salaries expenses                                    3000

                    Salaries payable                                                                3000

                    Being the correction of salaries

                   expenses

1/11/2021      Loan interest expenses                            1500

                    Loan payable                                                                      1500

                    Being the  correction of loan

                    expenses

1/8/2020      Office supplies expenses                         4400

                    Prepaid office supplies                                                        4400

                   Being the correction of error of office

                   supplies

                                  Total                               <u>26100            26100</u>

The word ’journal’ means a dairy or day books which is use for recording of any financial transaction. It helps in reducing the possibility of an error when transactions are first recorded. The journal is not part of the double entry system; its purpose is giving details of entries, which will appear in the Ledger.  

Deferred revenue which can also be refer to as unearned revenue are income receive on goods or services which have not been rendered to the customer, because the service has not been rendered to the payer, it is a debt or liability to the company so this should be treated as a credit entry under Journal entry.

Accrued expenses: these are expenses owed or due for payment by the company which has not been paid, for example, owing of employment wages or salaries at the end of accounting period, the expenses should be debited under journal entry and wages payable should be credited.

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Consumers often seek bargains by purchasing goods in large quantities; for example, buying in bulk at Costco or buying larger bo
Nimfa-mama [501]

Answer:

The correct answer is the option B: second-degree price discrimination.

Explanation:

To begin with, the term of price discrimination, in marketing and economics, refers to the action of charge different prices to different consumers for the same product that do not vary in quality. This concept states fourth differents degrees in order to use the most beneficial strategy to one's company.

To continue,<em> the second-degree price discrimination</em> establishes that companies price products differently based on the preferences of various groups of consumers and furthermore it is very common to <u>apply this type of discrimination through quantity discounts</u> and to add an example, is very common to use this strategy in <u>warehouse retailers such as Costco.</u>

6 0
3 years ago
On January 1, 1997, an investment account is worth 100,000. On April 1, 1997, the value has increased to 103,000 and 8,000 is wi
loris [4]

Answer:

(B) 6.25%

Explanation:

January 1, 1997 = $100,000

April 1. 1997 = $103,000 - $8,000 = $95,000

January 1, 1999 = $103,992

annual interest rate for 1997 = i = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - ³/₁₂) = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - 0.25) = (x - 92,000) / 94,000

x = 92,000 + 94,000i

annual interest rate for 1998 = 1 + i = 103,992/x

x = 103,992/(1 + i)

0 = x(1 + i) - 103,992

now we replace x by 92,000 + 94,000i

0 = (92,000 + 94,000i)(1 + i) - 103,992

0 = (94,000 (1 + i) - 2,000)(1 + i) - 103,992

we now replace 1 + i by Y

0 = (94,000Y - 2,000)Y - 103,992

0 = 94,000Y² - 2,000Y - 103,992

using a calculator, Y = 6.25%

4 0
3 years ago
Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. She realizes, however, that e
qwelly [4]

Answer:

moral hazard

Explanation:

Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.

Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.

In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.

5 0
3 years ago
The Z−90 project being considered by Steppingstone Incorporated (SI) has an up-front cost of $250,000. The project's subsequent
LekaFEV [45]

Answer:

The right solution is Option a (-$6,678).

Explanation:

Given that:

Up-front cost,

= $250,000

Expected cash flows,

= $110,000

Assuming cost of capital,

= 12%

Now,

The expected net present value will be:

= 250000+0.5\times (110000+25000)\times \frac{1}{12 \ percent}\times (1-\frac{1}{1.12^5} )

= 250000+0.5\times (135000)\times \frac{1}{12 \ percent}\times (1-\frac{1}{1.12^5} )

= -6,678 ($)

5 0
3 years ago
Dake Corporation's relevant range of activity is 5,200 units to 6,000 units. When it produces and sells 5,600 units, its average
arlik [135]

Answer:

Total direct manufacturing cost= $55,890

Explanation:

Giving the following information:

5,600 units:

Average Cost per Unit Direct materials $ 6.55

Direct labor $ 3.80

The manufacturing overhead is an<u> indirect cost.</u> It is allocated based on a predetermined rate. <u>We will take into account only the direct materials and direct labor.</u>

<u>For 5,400 units:</u>

Total direct manufacturing cost= 5,400*(6.55 + 3.8)

Total direct manufacturing cost= $55,890

6 0
3 years ago
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