2. Use the Exact interest method, what is the amount of interest on a loan of

Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space

Daniel [21]

Answer:

correct option is $13,000

Explanation:

given data

leases office = $7,000 per month

Phoenix incurs = $65,000

yield benefits = 8 years

remaining on its lease = 5 years

solution

we know that The cost of leasehold improvement is depreciate whichever is less

(a) Remaining Lease Term

(b) estimated useful life of improvement

so Annual depreciation of Leasehold Improvement will be here

Annual depreciation of Leasehold Improvement = $\frac{65000}{5}$

Annual depreciation of Leasehold Improvement = $13,000

so correct option is $13,000

4 0

3 years ago

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:

Oksana_A [137]

Answer and Explanation:

a. The computation of the net operating income earned is shown below:

Sales $800,000

Less: Variable cost -$381,000

Contribution margin $419,000

Less: Fixed manufacturing expenses - $263,000

Less : Fixed selling and administrative expenses - $211,000

Net operating income or (Loss) -$55,000

b. The computation of the financial advantage (disadvantage) of dropping product D14E is shown below:

Sales $800,000

Less: Variable cost -$381,000

Contribution margin $419,000

Less: Fixed manufacturing expenses - $202,500

Less : Fixed selling and administrative expenses - $117,500

Financial disadvantage -$99,000

Since there is a financial disadvantage so the product should not be dropped

We simply applied the above equation

7 0

3 years ago

Explain why two employees at a company, earning the same gross pay, might have different net pays.

Orlov [11]

It would be depending on how they filled out their tax forms before starting the job. Some people may have children to claim on their tax returns and some people may only be able to claim only theirself .

4 0

3 years ago

Read 2 more answers

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses

frez [133]

The appropriate journal entry to record the transactions is: Debit Cash $7,840; Debit Sales discount $160; Credit Account receivable $8,000.

<h3 /><h3>Journal entry</h3>

The correct entry to record the transaction is:

November 17

Debit Cash $7,840

(98%×$8000)

Debit Sales discount $160
(2%×$8000)

Credit Account receivable $8,000

Therefore the appropriate journal entry to record the transactions is: Debit Cash $7,840; Debit Sales discount $160; Credit Account receivable $8,000.

Learn more about journal entry here:brainly.com/question/14279491

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3 0

2 years ago

If the direct write-off method is used to account for uncollectible accounts, which of the following statements is false? Multip

ziro4ka [17]

Answer:

Accounts receivable will be reported at the net amount of cash expected to be collected.

Bad debt expense is recorded at the time an actual bad debt is written-off.

Explanation:

Accounts receivable will be reported at the net amount of cash expected to be collected. One of the criticism of the direct match off method is that its violate the matching concept and as such account receivable won't be equal to the net amount of cash.

Bad debt expense is recorded at the time an actual bad debt is written-off. Bad debt is recorded when the debt is deemed to be irrecoverable.

8 0

4 years ago

Read 2 more answers