Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $2,000
To Accounts receivable-Hopkins $2,000
(Being write off is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done
Answer:
Madison Company's Journal entry
Dec. 31
Dr Cost of Merchandise Sold 93,400
($875,300-$781,900)
Cr Merchandise Inventory 93,400
Explanation:
If the perpetual inventory records $875,300 of merchandise while the physical inventory indicates $781,900 which means we have to deduct $781,900 from $875,300 which made us to arrived at $93,400 as Debited Cost of Merchandise Sold and as Credited Merchandise Inventory .
Answer: The options are given below:
A. $292,000
B. $267,250
C. $205,250
D. $275,250
The answer is D. $275,250
Explanation:
Net profit = 425,000 - 338,000 = $87,000
Common Stock =110,000 + 25,000 = $135000
Retained Earnings = 70,000 + 87,000 = $157000
Less: Dividend paid = -$16,750
We will calculate shareholders equity as follows:
Total shareholders' Equity = common stock + retained earnings - dividend paid
=> $135000 + $157000 - $16,750
= $275,250
Answer:
D) The Agency Problem
Explanation:
The agency problem refers to a conflict of interests between the principal and his/her agent. Agents have a fiduciary duty to act on the best interest of their principal, but sometimes agents place their own personal interest before the interests of their principal.
in this case, the brokers should act on behalf of their clients to make them earn the largest possible profits, but instead they focus on convincing them about transactions that increased the broker's profit and not the clients'.
Answer:
Design Capacity Utilization= 75%
Production efficiency = 120%
Explanation:
Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there
1. The Capacity Utilization = The Actual Output/ Design Capacity
Actual Output= 300 hamburgers a day
Design Capacity = 400 Hamburgers a day
Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100
= 75%
2. The Efficiency of the production = The Actual Output / The Effective Capacity
Actual Output = 300 Hamburgers a day
Effective Capacity = 250 hamburgers
= 300 Hamburgers/ 250 Hamburgers x 100
= 120%
Conclusion
First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.
