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3 years ago

When journalizing a transaction, a short explanation is written?

1 answer:

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Here is the answer. When journalizing a transaction, and a short explanation is written, this is called a MEMORANDUM. This is <span>a form on which a brief message is written describing a transaction. Hope this answers your question. Have a great day!</span>

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11. Brooke Company desires net income of $720,000 when it has $2,000,000 of fixed costs and variable costs of 60% of sales. Cont

Mila [183]

Answer:

b. $2,720,000

Explanation:

The contribution margin is what is left after subtracting the variable cost from the sales.

From there, the company pays their fixed cost and the rest is net income.

In this case you have a company desiring to get 720,000 net income after paying their 2,000,000 fixed cost

So we come up with with formula:

$Contribution Margin - Fixed Cost = Net Income$

Replacing the know values, we get the unknow value. Like it was a solve for X question:

$X - 2,000,000 = 720,000\\X = 2,000,000 + 720,000\\X = 2,720,000$

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3 years ago

Howard Ramsell recently became aware of implied warranties that exist for consumer purchases. An implied warranty exists as a re

faltersainse [42]

Answer:

(C) the intended use of a product.

Explanation:

Implied as the term means that it is obvious, further guarantee means that the guarantee is obvious.

Now, this is because of the use of the product, as for example there is an equipment called heater, which is generally sold in winters, as it warms the room.

Now it is implied that the heater shall at-least be in proper condition and shall work without any failure for one season of winters.

The correct answer is,

Statement C

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3 years ago

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number

8_murik_8 [283]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.

Because there is unused capacity, we will not have into account the fixed costs.

Unitary cost= $3.25

It is more convenient to produce in house. The indifference price is $3.50.

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3 years ago

Petro Roos is thinking of purchasing the business premises rather than renting it. Provide Two separate advantages and two separ

lilavasa [31]

Answer:

Advantages of buying business premises

There are considerable advantages to securing a mortgage to buy business premises, including:

your mortgage repayment is likely to be similar to or less than a rental payment on the same property
with a fixed rate mortgage, your monthly repayments will be predictable
you aren't exposed to any sudden, large rent increases
you may be able to sublet any free space, reducing your monthly repayments (you may require permission from your lender to do so) and allowing you to generate extra income
interest payments on a commercial mortgage are tax-deductible
any gain in value of the property will increase your capital
as your business grows, you may be able to extend your existing premises, avoiding relocation costs
you have control over what alterations you want to make to your office space

Disadvantages of buying business premises

The disadvantages of buying business premises include the following:

Unlike renting, you'll need to come up with a substantial mortgage deposit - this is money that might be used for more important business purposes.
If you own premises, you may find it harder to relocate your business, because selling business premises is a complex and sometimes lengthy process. If you rent, you may be able to negotiate to end your rental agreement, or to find another organisation to take over your tenancy at short-notice.
If you have a variable rate mortgage, you are exposed to increases in interest rates.
Owning a property means you'll be responsible for factors such as maintenance, fixtures and fittings, insurance, decoration and security, which can prove expensive.
Repaying a commercial mortgage
Commercial mortgage fees and costs
Book traversal links for Advantages and disadvantages of buying business premises

Explanation:

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3 years ago

Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an insta

arlik [135]

Answer:

Explanation:

a. The journal entries are shown below:

Accounts receivable A/c Dr $410,000

To Sales revenue A/c $370,000

To Unearned service revenue A/c $40,000

(Being the sale is recorded)

Cost of goods sold A/c Dr $300,000

To Merchandise inventory A/c $300,000

(Being inventory is sold at cost)

b. The recognized revenue would be

Sales revenue $370,000

Service revenue $20,000

Total revenue $390,000

The service revenue would be

= $40,000 × 3 months ÷ 6 months

= $20,000

And, the 3 months is computed from January 2 to March 31

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3 years ago