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3 years ago

Great Adventures Problem

Business

1 answer:

andrew11 [14]3 years ago

3 0

Answer and Explanation:

The Journal entry is shown below:-

Amount should be capitalized for new vehicle = Cost + Painting and new logo cost + Deluxe Roof rack and trailer hitch

= $15,600 + $6,600 + $2,900

= $25,100

We took the cost of painting and deluxe roof and trailer hitch costs into account as they are supposed to increase the vehicle's future benefits.

Depreciation = (Cost - Salvage Value) ÷ Number of Years

= ($25,100 - $6,300) ÷ 5

= $3,760 per year

In the year 2022 vehicle is used only for 6 months (July to Dec), depreciation expense for the year ended December 31, 2022 is

= $3,760 × 6 ÷ 12

= $1,880

So, the Journal entry is

Depreciation expense Dr, $1,880

To Accumulated Depreciation $1,880

(Being depreciation provided for the year 2022 is recorded)

Therefore for recording the depreciation provided for the year 2022 we simply debited the depreciation expenses while we credited the accumulated depreciation.

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John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most

MrMuchimi

The most cost effective way for John to buy a house in the suburbs is:

a.Move to the suburbs and rent a house for one year before purchasing a home.

This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.

If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.

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3 years ago

Read 2 more answers

Match the types of agreements to their descriptions. Answer choices are will,living will,trust,prenuptial agreement

Roman55 [17]

A will has legal impact after you have passes away and has to be filed with the court.

A living will is similar to a regular will be takes effect while you are still alive to figure out where your assets should be placed.

A trust is an agreement that allows a third party to hold the assets on behalf of a beneficiary.

A prenuptial agreement is an agreement made before a marriage that explains what should happen to their assets in the event their marriage does not last. This is common in famous people due to the amount of money they have.

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4 years ago

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The existing balance in the Allowance for Doubtful Accounts is considered in computing bad debt expense when using the percentag

kolbaska11 [484]

Answer:

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the percentage of receivables basis.

Explanation:

Percentage of receivables basis is preferred over direct write-off of bad debt expenses and is used in the calculation of bad debts, this is done by multiplying the accounts receivable by percentage of expected noncollectable debts and then subtracting accounts for bad debts are then subtracted from accounts receivable on the balance sheet and the result reported as net accounts receivable. It is used in calculating the bad debt expense in each account reporting period.

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3 years ago

"The market price average is decreasing daily; however, the level of declines relative to advances is falling. The market is rea

m_a_m_a [10]

Answer:

This question is incomplete, the options are missing. The options are the following:

A) Overbought condition.

B) Oversold condition.

C) Breakout on the upside.

D) Breakout on the downside.

And the correct answer is the option B: Oversold condition.

Explanation:

To begin with, the name of "Oversold Condition" refers to the situation where the price of an asset has reach a certain level that is relative low in comparison with the prices that it has have before. That situation can last for a long period of time so the most prudent way to act in the eyes of a trader is to wait until the price base out and start increasing.

So that situation in where the market price average is decreasing and reaching to its bottom is called Oversold Condition.

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3 years ago

SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per u

Stells [14]

Answer:

Instructions are below.

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 162,000 / (90 - 36)

Break-even point in units= 3,000

The break-even point in units is the number of units required to cover for the fixed costs. At this point, the net income is zero. When cost increase, there are necessary more units to break even.

Fixed cost increase= break-even point in units increases

Unitary variable cost increase= contribution margin decreases. Break-even point in units increases

Selling price increase= break-even point in units decreases.

3 0

4 years ago