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Elanso [62]
3 years ago
14

Why are newspapers sold in vending machines that allow consumers to take more than they pay for, but items like soda and candy a

re sold in vending machines that only allow consumers to take one at a time?
Business
1 answer:
boyakko [2]3 years ago
7 0

The marginal utility for newspaper is zero on the other hand the marginal utility for soda and candy are positive

Explanation:

The newspapers that are sold in vending machines have zero marginal utility because all the news which are given in the newspaper are identical and they are same they do not have multi purpose uses and hence they allow the consumers to take more than what they pay

The soda vending and the candy vending machines have positive marginal utility they have different brands of sodas and candies and hence they allow the consumers to take only one at a time

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Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2018. Prepare the journal entries by Mills to reco
Damm [24]

Answer:

the question is incomplete, so I looked for a similar one and found the following:

"Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 3% for bonds of similar risk and maturity. Mills paid $280.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31."

At what amount will Mills report its investment in the December 31, 2018, balance sheet?

July 1, 2018, bonds are purchased at a premium

Dr Investment in bonds 240,000,000

Dr Premium on investment in bonds 40,000,000

    Cr Cash 280,000,000

December 31, 2018, first coupon payment

Dr Cash 12,000,000

   Cr Interest revenue 8,400,000

    Cr Premium on investment in bonds 3,600,000

The carrying value of the investment in bonds account = $280,000,000 - $3,600,000 = $276,4000,000 or $276.4 million

Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2019, for $290 million.

January 2, 2019

Dr Cash 290,000,000

    Cr Investment in bonds 240,000,000

    Cr Premium on investment in bonds 36,400,000

    Cr Gain on sale of investments 13,600,000

Explanation:

amortization of bond premium using the effective interest method on first coupon received = ($240,000,000 x 5%) - ($280,000,000 x 3%) = $12,000,000 - $8,400,000 = $3,600,000

Premium on investment in bonds = $40,000,000 - $3,600,000 = $36,400,000

4 0
4 years ago
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
marta [7]

Answer:

Evans Company

General Journal

Part a.

Debit : Cash $645

Debit : Cost of goods sold $375

Credit : Sales Revenue $645

Credit : Merchandise $375

Part b.

Debit : Cash $432

Debit : Cost of goods sold $195

Credit : Sales Revenue $432

Credit : Merchandise $195

Part c.

Debit : Accounts Receivable $670

Debit : Cost of goods sold $438

Credit : Sales Revenue $670

Credit : Merchandise $438

Part d.

Debit : Credit Card fees $85

Credit : Cash $85

Explanation:

The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.

4 0
4 years ago
On July 15, 2021, the Nixon Car Company purchased 2,100 tires from the Harwell Company for $40 each. The terms of the sale were
SOVA2 [1]

Answer:

The journal entries are shown below:

Explanation:

The journal entries are shown below:

On July 15

Purchases (2,100 × $40)      $84,000

          To Accounts Payable    $84,000

(Being the purchase is recorded)

On July 23

Account payable $84,000

           To Purchase discount  $2,520   ($84,000 × 3%)

            To Cash $81,480

(Being the payment is recorded)

On August 15

Account payable $84,000

   To cash $84,000

(Being the payment is recorded)

7 0
4 years ago
James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to
boyakko [2]

Answer:

The total contribution to GDP is $22000.

Explanation:

Two houses contribute to GDP = $10000 + $12000

=  $22000 per year.

The GDP refers to the total expenditure on the goods and services produced. Moreover, rent is also included in GDP calculation. Thus the total contribution of two houses to GDP is $22000.

5 0
3 years ago
Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variab
mart [117]

Answer:

$186,980

Explanation:

the operating income is reduced by $186,980

5 0
3 years ago
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