Answer: Choice A
Explanation:
A mixed cost is a cost that consists of both the fixed and the variable component. An example is utility.
It should be noted that as the level of activity increases, the mixed cost in total will increase while mixed cost per unit will reduce. This is because there'll be an increase in unit which will ideally lead to reduction in the per unit while total mixed cost increase.
Answer:
All workings and explanations are in the explanation section.
Explanation:
<u>Transaction 1: </u>
<u>Purchased new equipment for $3,350 by issuing a check for $2,100 as a down payment with the balance due in 30 days.</u>
Debit: Fixed asset account - Equipment $3,350
Credit: Bank account $2,100
Credit: Current liabilities - $1,250
<u>Explanation:</u>
- Equipment is a fixed asset, when an asset is increased, it is debited.
- Partial payment was made by bank- bank is a current asset, a decrease to the asset is a credit item.
- The remaining balance is current liability, since payable within 30 days, an increase in liability is a credit item.
<u>Transaction 2:</u>
<u>Returned damaged supplies and received a $105 cash refund. </u>
Debit: Cash - $105
Credit: Supplies - $105
<u>Explanation:</u>
- Cash refund is an increase in cash - current assets, it is a debit item
- Supplies are decreased, and supplies is also a current asset, a decrease in current assets is a credit item.
Transaction 3:
Purchased supplies for $310 on account.
Debit - supplies - $310
Credit - payables - $310
<u>Explanation:</u>
- Supplies are current assets - an increase in supplies is a debit item.
- They are purchased on account means it is a current liability, therefore, an increase in liabilities is a credit item.
<u>Transaction 4:</u>
<u>Provided services for $7,350 on credit.</u>
Debit: Receivable - $7,350
Credit: Sales revenue - $7,350
<u>Explanation:</u>
- Receivables are current assets - an increase in receivables is a debit item.
- Sales revenue is credit item, an increase in revenue is credit.
<u>Transaction 5:</u>
<u>Issued a check for $920 to pay a creditor on account.</u>
Debit - payables - $920
Credit - Bank -$920
<u>Explanation:</u>
- A decrease in creditors is a debit item
- A decrease in bank, is a credit item
<u>Transaction 6:</u>
<u>Issued checks for $3,500 to pay the employees their monthly salaries.</u>
Debit Wages - $3,500
Credit Bank - $3,500
<u>Explanation:</u>
- Wages are an expense. An increase in the expense is a debit item.
- Bank is a current asset, a decrease in bank is a credit item.
<u>Transaction 7:</u>
<u>Issued a check for $320 to pay the monthly telephone bill. </u>
Debit - Utilities -$320
Credit - Bank - $320
<u>Explanation: </u>
- Utilities are an expense. An increase in the expense is a debit item.
- Bank is a current asset, a decrease in bank is a credit item.
Answer:
The present value for each year is calculated at 4% interest. In this question the present value be the sum of the cash deposits plus the interest for each year.
Present Value
= Sum of cash deposits for each year + Interest for each year
= 23100 + 9240
= 32340
Explanation:
To calculate the sum of the cash deposits, add the deposit for each year.
(Year 1 to Year 21 = 23100)
To calculate the interest for each year, take the cash deposit for the year and multiply it by 4%. (Year 1 to Year 21 = 9240)
Refer to the attached spreadsheet to assist with the calculations and the answer given above.
It is not false that a creditor beneficiaries can enforce their rights under a contract whenever the contract is valid, it because the beneficiaries can enforce their own rights under the contract. So the correct answer is a, true.
Answer:
Answer:
P (A or B)= 0.65
Explanation:
Step-by-step explanation:
Given
P(a) = 0.60
P(b) = 0.20
P(a and b) = 0.15