1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DerKrebs [107]
3 years ago
7

Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce

rtified public accountant. He runs his business from his converted garage apartment, which he could rent out for $300 a month if he wasn’t using it as a home office. He must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $12,000 per month.
(a) What are Barney’s monthly explicit costs?
(b) What are Barney’s monthly implicit costs?
Business
1 answer:
user100 [1]3 years ago
5 0

Answer:

a. $125 per month

b. $10,300 per month

Explanation:

Data provided in the question

Paid amount as a corporate accountant = $10,000

Renting cost = $300

Purchase of office supplies = $75

Monthly electric bill = $50

The computation is shown below:

a. Explicit cost

Explicit cost = Purchase of office supplies + increase in monthly electric bill

= $75 + $50

= $125 per month

b. Implicit cost

= Paid amount as a corporate accountant + renting cost

= $10,000 + $300

= $10,300 per month

You might be interested in
Complete the statement by filling in the correct terms.
Setler79 [48]
1= A. Balancing a back account
2= B. bank statement
8 0
3 years ago
Read 2 more answers
On November 1, 2017, Austin Services issued $305,000 of five-year bonds with a stated rate of 12%. The bonds were issued at par,
sergiy2304 [10]

Answer:

$12,200

Explanation:

Calculation to determine the amount of interest expense was recorded for the period of January 1 to April 30, 2018

Interest expense=$305,000*12%*4/12

Interest expense=$12,200

Therefore the amount of interest expense was recorded for the period of January 1 to April 30, 2018 is $12,200

8 0
2 years ago
Dannon Co. reported its expenses of $35,200 on the cash basis. Corporate records revealed the following information: Beginning p
Elena-2011 [213]

Answer:

Explanation:

The computation of expense amount is shown below:

=  Expenses - adjusted prepaid expense + adjusted accrued expense

= $35,200 - $500 -  $450

=  $34,250

The adjusted prepaid expense is computed by

= Ending balance of prepaid expense - beginning balance of prepaid expense

= $1,800 - $1,300

= $500

And, the The adjusted accrued expense is computed by

= Ending balance of accrued expense - beginning balance of accrued expense

= $1,200 - $1,650

= -$450

8 0
3 years ago
You are the Accounting Director for SpaceX based in New York. Your department is implementing new accounting software (called Fi
soldier1979 [14.2K]

Answer:

The change will impact all 300 locations. The letter should be written to entire staff of the SpaceX.

Explanation:

To: All Staff SpaceX Team

Subject: Change over details (First Launch)

As you all are already aware about the implementation of new software named First Launch . The software installation run will start from March 1, 2021 at 9:00 a.m. Every accountant receiving the new product will require to install the software within 48 hours. Failure to do will result in expiry of the password which will require resending the software. After installation all accountants must restart the computer.

This change will affect all 300 locations across the United States. The changeover will result in improved efficiency, increase in security and there will be more transparency.

If there is any concern or query regarding this change feel free to write the team implementing the change.

Regards,

Director Accounts.

8 0
2 years ago
Why an investor might choose to have less than 20% holding in a company if they could have more?
gtnhenbr [62]
<span>The simple answer here is you never want to over commit any part of your portfolio. Every single successful investor has a wide variety of investment holdings. This is known as diversification. If you place all of your "eggs in one basket," so to speak, if that investment were to play against you, your losses may be much higher than anticipated or often irrecoverable. With a diverse portfolio, when one small portion of your investment strategy fails, you can count on other, more successful aspect to make up the difference.</span>
3 0
2 years ago
Other questions:
  • The employment potential of the Education and Training career cluster in 2020 compared to other clusters is expected to be
    12·2 answers
  • McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs a
    15·1 answer
  • When you know you cannot pay your debts, which of the following should you do?
    5·1 answer
  • Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selli
    13·1 answer
  • $800 of supplies were purchased at the beginning of the month and the Supplies account was increased. As of the end of the perio
    8·1 answer
  • 1) Suppose at market opening on 10/24/2019, the market expects the bond that matures in 2034 ("the longer-term bond") to provide
    9·1 answer
  • What can help you meet your budget while shopping for
    14·1 answer
  • Jamie lee received an offer to transfer the balance of all of her store credit cardsto her bank credit card in the mail. It offe
    7·1 answer
  • Exercise 6-1A Calculate cost of goods sold (LO6-2) Russell Retail Group begins the year with inventory of $55,000 and ends the y
    7·1 answer
  • Remote Disposal Company operates a hazardous waste storagefacility. Concerned that there may be a release of chemicals from thes
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!