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marysya [2.9K]
3 years ago
6

Suppose that in the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie

tickets for $7 each. In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.(Scenario: Price Index) The price index for the second month is:
(A) 94
(B) 106.4
(C) 100
(D) 101.1
Business
1 answer:
spayn [35]3 years ago
4 0

Answer:

The correct answer is option B.

Explanation:

In the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each.

In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.

The price index

= \frac{price\ of\ basket\ in\ the\ current\ year}{price\ of\ basket\ in\ the\ base\ year}\ \times\ 100

= \frac{100}{94}\ \times\ 100

= 106.38 or 106.4

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On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $21,060 in cash and merchandise invent
tester [92]

Answer:

Explanation:

a. The journal entries are shown below:

Cash $21,060  

Merchandise inventory $56,290  

             To Eric Keene's Capital $77,350

(To record investment made)

Accounts receivable $17,770  

Equipment $54,190  

Cash (Liabilities - Assets) $40,820  

     To Allowance for doubtful accounts $1,950

     To Accounts payable $14,910

     To Notes payable (current) $35,970

    To Reene Wallace's capital $59,950

(Being capital contribution by Reene wallace is recorded)  

2.

<u>KEENE AND WALLACE </u>

<u> Balance Sheet </u>

<u> March 1, 20Y8</u>

Assets    

Current Assets    

Cash (21,060 + 40,820) $61,880  

Accounts Receivable Less Allowance $15,820  

Merchandise inventory $56,290  

Total current assets $133,990  

Property, plant and Equipment    

Equipment $54,190 54,190  

Total Assets   $188,180

Liabilities    

Current Liabilities    

Accounts Payable $14,910  

Notes Payable       $35,970  

Total liabilities       $50,880  

Partner's Equity    

Eric Keene's capital $77,350  

Renee Wallace's capital $59,950  

Total partner's equity  $137,300  

Total liabilities and partner's equity $188,180

7 0
3 years ago
For high school graduation, Ryan’s family is giving him a choice between two presents that are both worth $900. He can choose ei
yulyashka [42]

Answer: The Mexican trip with his best friends

Explanation:

Ryan cannot choose both options and thus has to make a decision of which option to take. Therefore he automatically sacrifices the other option. This type of decision is relevant and is known as a relevant cost. Relevant costs are costs that differ between alternatives, and thus influence the decision that you will make.

Opportunity cost is a type of relevant cost. This is the option that is given up / sacrificed when one option (laptop) is chosen over another (Mexican trip). In this case the opportunity cost is the Mexican trip when the laptop is chosen.

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3 years ago
Privett Company Accounts payable $33,264 Accounts receivable 67,719 Accrued liabilities 6,039 Cash 20,980 Intangible assets 39,9
xz_007 [3.2K]

The total amount of quick assets is equal to $119,232. therefore, Option B is the correct statement.

<h3>What are Quick Assets?</h3>

Quick assets encompass cash available or current assets like accounts receivable that may be transformed to cash with minimum or no discounting.

Companies have a tendency to use the short assets to cover short-time period liabilities as they arrive up, so speedy conversion into cash (excessive liquidity) is critical.

Inventories and prepaid expenses aren't quick assets due to the fact they may be hard to transform into cash, and deep discounts are sometimes needed to do so.

The amount of quick assets is equal to Accounts receivable plus Cash plus Marketable securities.

Quick assets = $67,719 + $20,980 + $30,533

Quick assets = $119,232

Hence, the total amount of quick assets is equal to $119,232. Option B is the correct statement.

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5 0
2 years ago
Who is bored if so lets talk
PSYCHO15rus [73]
Meeeeeeeeeeeeeeeeeee
8 0
3 years ago
Read 2 more answers
In year 2, Sammi Corp. changes its inventory method from FIFO to the weighted-average method. Under the weighted-average method,
Dima020 [189]

Answer:

Two adjustments must be made to year 1's financial statements:

  1. The income statement must be adjusted since net income increased because cost of goods sold decreased.
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Explanation:

The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.

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