Answer:
$522,000
Explanation:
The computation of the Kendall Ford's total investment spending in 2018 is shown below:
= Dealership spent + repairing cost + unsold cars and trucks were valued i.e closing cost - unsold cars and trucks were valued i.e opening cost
= $20,000 + $2,000 + $900,000 - $400,000
= $522,000
The $600,000 would be ignored and the rest cost are taken for the computation
Answer:
Explanation:
March 1
Cash 1700
Share Capital 1700
To record the issuance of shares
March 3
Equipment 1400
Cash 1400
To record the purchase of equipment on cash
March 5
Rent Expense 470
Cash 470
To record the rent expense
March 7
No entry neither cash nor serves are provided.
March 12
Purchase 117
Cash 117
To record the purchases
March 15
Cash 670
Income 670
To record the services Income.
March 19
Advance 570
Payable 570
To record the advance cash receipt for services not yet provided thus advance is our liability.
March 25
Payable 228 570/25*10
Income 228
To record the services income against advance given.
March 30
Utilities Expense 82
Cash 82
To record the monthly utilities expense
March 31
Dividend Pay 85
Cash 85
To record the payment of dividend.
2)
<u>Share Capital Account</u>
Opening = 0
Cash 1700
<u>Closing=1700</u> <u> </u>
<u>Cash Account</u>
Opening = 0
share capital 1700 Equipment 1400
Rent 470
Purchase 117
Income 670
Adv. Pay 570
Utilities 82
Dividend 85
<u>Closing balance- 786</u>
<u>Equipment</u>
Opening = 0
Cash 1400
<u>Closing-1400</u>
<u>Rent Expense</u>
Opening = 0
Cash 470
<u>Closing-470</u>
<u>Purchase Expense</u>
Opening = 0
Cash 117
<u>Closing-117</u>
<u>Income Account</u>
Opening = 0
Cash 670
Payable 228
<u>Closing- 898</u> <u> </u>
<u>Payable Account</u>
Opening = 0
Cash 570
Income 282
<u>Closing-342</u> <u> </u>
<u>Utilities Expense</u>
Opening = 0
Cash 82
<u>Closing-82</u>
<u>Dividend</u>
Opening = 0
Cash 85
<u>Closing-85</u>
3) Trail Balance
Head Of Account Debit Credir
Cash 786
Share Capital 1700
Equipment 1400
Rent Expense 470
Purchases 117
Income 898
Payable 342
Utilities 82
Dividend 85
Total 2940 2940
An example of a natural monopoly industry operating in South Africa include "Eskom".
<h3>
What is natural monopoly?</h3>
A natural monopoly occurs when there is an instance in which it is economically viable and better for a single entity to be in full and sole control of the production of a product or service.
Moreover, a natural monopoly is the fact that natural monopolies have extreme economies of scale. It can only start to become profitable when one single firm is able to service the majority of the market.
Learn more about natural monopoly, refer to the link:
brainly.com/question/4417882
#SPJ1
Answer:
Option (b) is correct.
Explanation:
The total surplus is defined as the sum total of producer surplus and consumers surplus. Total surplus with a tax is defined as the combined total of producers and consumers surplus and tax revenue that is earned by the government of a particular nation.
Consumers surplus = Willingness to pay for the product - Actual amount paid for the product
Producers surplus = Actual amount received for the product - Willingness to accept for the product
Answer:
The current share price is $82.85
Explanation:
D1 = (2.85*1.25)
= 3.56
D2 = (3.56*1.25)
= 4.45
D3 = (4.45*1.25)
= 5.566
Value after year 3 = (D3*Growth rate)/(Required rate - Growth rate)
= (5.566*1.045)/(0.105 - 0.045)
= $96.95
current price = Future dividend and value*Present value of discounting factor
= 3.56/1.105 + 4.45/1.105^2 +5.566/1.105^3 + $96.95/1.105^3
= $82.85
Therefore, The current share price is $82.85
