Answer:
Journal entry to record sale of toasters and warranty
Dr Cash 36,000
Cr Sales revenue 36,000
Dr Warranty expense 2,400
Cr Warranty liability 2,400
Adjusting entry for actual warranty expense
Dr Warranty liability 500
Cr Cash 500
Since the warranty covers a 5 year period, the remaining warranty expense cannot be recognized as warranty revenue yet. Only after the warranty period is over, will any money left over will be recognized as revenue.
Answer:
its a formula, however long the machine is running the manufacturing rate will be higher thus increasing their income
Explanation:
Answer:
b. revenues minus accounting and opportunity costs.
Explanation:
A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit
The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.
Answer:
Original cost of the stock = $23.16
Explanation:
Original cost of the stock = Selling price of stock / ( 1 + r )^n
Original cost of the stock = $50 / (1+8%)^10
Original cost of the stock = $50 / (1.08)^10
Original cost of the stock = $23.16
Answer:
The answer is: D) continue flying until the lease expires and then drop the run.
Explanation:
Currently Cold Duck Airlines is losing money:
It only gets $1,000 in revenue per flight but spends $1,150 per flight (net loss of $150 per flight).
They should continue flying only until the lease contract expires. Usually lease contracts apply penalties if they are terminated early. We don't know the penalty amount but still it is never good to breach a contract.
