Answer:
Option (b) is correct.
Explanation:
(a) If a producer uses the almost same quantities of all the factors of production and if marginal output remains the same then this will lead to no gains.
(b) This is done by purchasing the combination of inputs which are yielding higher marginal outputs.
(c) This would result in a loss because all the resources are not utilized properly or we can say that resources are not used at their potential.
(d) For achieving the level of profits, labor should be devoted to the work for maintaining the higher level of growth in production.
Answer:
having lower overhead costs.
Explanation:
Robert started his company in his mother's garage so he did not have to pay rent or lease at the initial stage of his business. This gave him the opportunity to put his finances in essential aspects of his business.
Therefore he had an opportunity to reduce his overhead cost.
Answer:
The Journal entries to record the given transactions would be:
Account Title Debit Credit
(1) Uncollectible Accounts Expense 18,600
Allowance for Doubtful Accounts 18,600
($600 + $18,000)
(2) Allowance for Doubtful Accounts 350
Accounts Receivable—Fronk Co. 350
(3) Accounts Receivable—Fronk Co. 200
Allowance for Doubtful Accounts 200
Cash 200
Accounts Receivable—Fronk Co. 200
(4) Cash 400
Allowance for Doubtful Accounts* 200
Accounts Receivable—Dodger Co. 600
($600 - $400)*
Answer:
1. Total interest rate is $166,790
2. Refer to the attached file for the straight-line amortization table for the bonds' life.
3.
To record interest rate paid in 30th June 2018:
Dr Interest expenses 16,679
Dr Premium on bond payable 4,521
Cr Cash 21,200
To record interest rate paid in 31st Dec 2018:
Dr Interest expenses 16,679
Dr Premium on bond payable 4,521
Cr Cash 21,200
Explanation:
Total interest rate as followed : Interest payment - Premium on bond payable = 530,000 x 8% /2 x 10 - (575,210 - 530,000) =166,790.
