Answer:
The amount of depreciation expense that should be recorded for the second year: $26,160
Explanation:
The units-of-production depreciation method is calculated by using the following formula:
Depreciation Expense = [(Cost of asset − Residual Value)/Life in Number of Units] x Number of Units Produced = Depreciation Expense per unit x Number of Units Produced
In the company,
Depreciation Expense per bolt = ($190,000 - $10,000)/750,000 = $0.24
In the second year, 109,000 bolts were produced,
Depreciation expense for the second year = $0.24 x 109,000 = $26,160
Answer:
Costs and production are both very important for the economy.
Explanation:
Costs are the values of the goods and services used for the production of other goods and services. For example, for the production of a chair, we must factor the cost of the raw material: wood, and the cost of direct labor: the wage of the carpenter.
Costs therefore, are crucial in determining the amount of output in an economy.
Cost also determine help determine the market structure of the economy. In general terms, when costs are high, profits are lower, which attracts less firms to the sector, and results in less competitive market structures such as oligopoly or monopoly.
The opposite is true when costs are low, because in this situation profits are likely to be higher, which attracts more firms to the sector, resulting in more competitive market structures like perfect competition or monopolistic competition.
Finally, we can say that the production of goods and services is important because it is the most important factor in determining the living standars of people in an economy. When many goods and services are produced, people obtain higher incomes because they are paid for the production of these goods and services.
Answer:
Particulars Type Appearance
Account Payable Liability Balance Sheet
Property, plant and equipment Asset Balance Sheet
Inventories Asset Balance Sheet
Long term Debt Liability Balance Sheet
Cost of Goods Sold Expense Income statement
Retained Earnings Equity Balance Sheet
Research and Development Expense Income statement
Prepaid Expenses Asset Balance Sheet
Common Stock Equity Balance Sheet
Account Receivable Asset Balance
Answer: True
Explanation:
The Four-Firm Concentration Ratio simply measures aggregate market share of the four biggest firms that are in a particular industry while the Eight-Firm Concentration Ratio measures that of the eight biggest firms.
It is true that in recent years, industries with high four- and eight-firm concentration ratios include cars, cereal breakfast foods, and farm machinery.
Answer:
$63,500
Explanation:
Interest expense paid in cash $55000
Less: Adjusted for accrued interest $13,000
payable
Add: prepaid interest adjusted <u>$21,500</u>
Interest expense in its current year <u>$63,500</u>
statement of income
