Answer:
Given that,
Company's bank reconciliation at June 30 included interest earned = $150
So, it must be cash must be debited and interest revenue must be credited in the accounts.
Therefore, the journal entry is as follows:
Cash A/c Dr. $150
To Interest revenue $150
(To record the interest revenue earned)
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.
Answer:
Explanation:
X - number of units sold
Total cost for production = 1,500,000 + 1600X
Total cost for purchasing = 2000X
a. For 4000 units sold
Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000
Total cost for purchasing = 2000* 4000 = $8,000,000
In this case producing is cheaper. Therefore, it is better to produce
b. Y - break-even point
Then : 1,500,000 + 1600 * Y = 2000* Y
So 1,500,000 = 400 Y
Y = 3750
At №of units less than 3750 purchasing will be the better option
And above 3750 producing will be the better option
Answer:
A) debit interest expense, $1000
Explanation:
to determine the accrued interest expense = $100,000 x 6% x 2/12 = $1,000
the journal entry should be:
December 31, 2018, accrued interest expense on note payable:
Dr Interest expense 1,000
Cr Accrued interest payable 1,000
Accrual accounting establishes that expenses must be recognize during the period that they occur regardless of when they are paid. So we must recognize 2 months worth of interest.
Answer:
Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.
Remember standard of living is measured by:
GDP per capita= Total GDP/ Total population
So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.
So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.
