Answer:
b. Debit Depreciation Expense, $150; Credit Accumulated Depreciation, $150.
Explanation:
The adjusting entry is as follows
Depreciation expense Dr - Equipment
To Accumulated depreciation
(Being the depreciation expense is recorded)
The computation is shown below:
= $1,800 ÷ 12 months
= $150
We simply debited the depreciation expense and credited the accumulated depreciation for $150 so that the proper posting could be done
Answer:
The answer is = 1,262,000units
Explanation:
Fixed cost = $648,640
Unit selling price = $7.40
Unit cost price = $5.68
Target profit/net income= $1,522,000
Unit Contribution margin = Unit selling price - unit variable cost
$7.40 - $5.68
=$1.72
Sales in units to achieve its target net income = (fixed Cost + target profit or net income)/unit contribution margin
($648,640 + $1,522,000)/$1.72
=$2,170,649 / $1.72
=1,262,000units
Therefore, Sheridan Corporation needs to sell =1,262,000units to achieve a target income of $1,522,000.
Answer:
$11000
Explanation:
Depreciation is the reduction in the value of an asset over time due to regular wear and tear. Straight - line depreciation is where the same amount is reduced every year over the life of the asset. It is calculated as (Cost of asset - residual value) / number of useful life years
= ($60000 - $5000) / 5 = $11000
Answer:
$18.60
Explanation:
Target cost:
= Sales revenue - Profit
= (No. of units sold × Selling price per unit) - (Investment require × desired return on investment)
= (20,000 × $21) - ($400,000 × 0.12)
= $420,000 - $48,000
= $372,000
Target cost per unit:
= Target cost ÷ Number of units
= $372,000 ÷ 20,000
= $18.60
Therefore, the target cost per unit is closest to $18.60.
Answer:
There are two ways in which Return on Assets can be calculated depending on whether we consider Total assets at year-end or average total assets.
1
or
2
Substituting the values in equation 1 we get,
Substituting values in equation 2 we get,
