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8_murik_8 [283]
2 years ago
7

On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an e

stimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs, and only prepares adjustments at year-end. The adjusting entry needed on December 31 of the first year is:
A. Debit Depreciation Expense, $9,000; credit Accumulated Depreciation, $9,000.B. Debit Depreciation Expense, $9,000; credit Equipment, $9,000.C. Debit Depreciation Expense, $18,000; credit Accumulated Depreciation, $18,000.D. Debit Depreciation Expense, $18,000; credit Equipment, $18,000.E. Debit Depreciation Expense, $90,000; credit Accumulated Depreciation, $90,000.
Business
1 answer:
ExtremeBDS [4]2 years ago
3 0

Answer:

Option C is correct

Explanation:

Using straight line depreciation method we can calculate the annual depreciation of the machinery, which can be calculated from the following formula:

Straight Line Depreciation = (Cost - Salvage Value) / Useful value

Straight Line Depreciation = ($95000 - $5000) / 5 years life = $18,000

The double entry would be:

Dr Depreciation Expense $18,000

Cr Accumulated Depreciation $18,000

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Answer: D. I, II, and III.

Explanation:

The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.

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Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.

All three therefore impart real interest rates.

7 0
2 years ago
The amount of a good that buyers are willing and able to purchase at a given price.
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Answer:

Quantity demanded is the amount of a good that buyers are willing and able to purchase at a particular price. Many things determine demand, but only price can determine the quantity demanded of a specific good. If you have the money and are willing to buy 2 ice cream cones a week, at $2 per cone, the quantity demanded would be 2 cones a week. Now, what happens if the price increases to $4 a cone? If you are like most people, the quantity of ice cream cones you demand will decrease as the price rises. In this case, assume your quantity demanded is now only 1 cone a week, which is what you are willing and able to buy. Notice that as the price of the cones increases, the quantity of ice cream cones demanded decreases. This means quantity demanded is negatively related to price-which means they have an inverse relationship. Economists refer to this relationship as the law of demand. The law of demand states that, other things being equal, when the price of a good rises, the quantity demanded of that good falls. The reverse is also true-when the price of a good falls, the quantity demanded of that good rises. The combination of the quantities people are willing and able to buy of a good or service at various prices constitutes a demand schedule. When the demand schedule is graphed, the demand curve is downward sloping.

7 0
2 years ago
Samples Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $21
Anvisha [2.4K]

Answer:

$18.60

Explanation:

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= Sales revenue - Profit

= (No. of units sold × Selling price per unit) - (Investment require × desired return on investment)

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= $420,000 - $48,000

= $372,000

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= Target cost ÷ Number of units

= $372,000 ÷ 20,000

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