Answer:
Accounting profit will be $500000
Economic profit will be $200000
Explanation:
We have given number of units produces = 200000
Cost of one unit = $10
So total cost of production = 100000×$10 = $1000000
Explicit cost = $1500000
And implicit cost = $300000
We know that accounting profit = revenue - explicit cost = $1000000-$1500000 = $500000
And economic profit = revenue - implicit cost = $1000000-$300000 = $200000
Answer:
The Journal entry is as follows:
On July 1,
Cash A/c Dr. $439,200
Finance charge Expense A/c Dr. $10,800
To Financing arrangement A/c $450,000
(To record the amount of borrowings)
Workings:
Finance charge expense = ($600,000 × 1.8%)
= $10,800
So, cash account = $450,000 - $10,800
= $439,200
D. Eliminates other options is correct. Just took the test.
You should open a joint bank account. Joint allows deposit or withdraw cash from your dual income. Can share with your family members. Income is safe with you having a joint account because you can monitor transaction.