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KatRina [158]
3 years ago
7

a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years.b. Paid $200 c

ash per truck for the cost of their annual tune-ups.c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.d. Completed an addition to an office building for $225,000 cash.1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.

Business
1 answer:
Nady [450]3 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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You own a small manufacturing business that produces widgets. You have spent $400,000 acquiring the fixed assets you need to pro
anygoal [31]

At the current level of operating leverage, the small manufacturing business needs to sell <u>18,182 units</u> of widgets to break even.

<h3>What is the break-even point?</h3>

The break-even point is the level of production and sales required so that the entity does not incur any losses or earn any profits.

At the break-even point, the total costs (fixed and variable) equal the sales revenue.

<h3>Data and Calculations:</h3>

Fixed assets = $400,000

Production cost of each widget = $3

Selling price per unit = $25

Variable cost per unit = $3 ($25 x 12%)

Contribution margin per unit = $22 ($25 - $3)

Break-even point in units = Fixed Costs/Contribution margin per unit

= 18,182 units ($400,000/$22)

Thus, at the current level of operating leverage, the small manufacturing business needs to sell <u>18,182 units</u> of widgets to break even.

Learn more about break-even analysis at brainly.com/question/21137380

#SPJ1

4 0
2 years ago
True or false: industrial policies of the united states have been more formal than those of europe and japan. the u.s. governmen
mixer [17]
<span>False. Industrial policies of the United States have been less formal than those of Europe and Japan. The U.S. government encourages exports via its Export-Import Bank and Commodity Credit Corporation. Firms are also allowed to form export trading companies and export trade associations.</span>
5 0
4 years ago
Clover Hardware sold a range of products. A few weeks ago, orders arrived for the garden center and outdoor living areas. 500 gr
masya89 [10]

Answer:

COGS= $15,000

Explanation:

Giving the following information:

Purchase= 500 grills

Unitary cost= $75

Units sold= 200

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 0 + 500*75 - 300*75

COGS= $15,000

or;

COGS= 200*75= $15,000

7 0
3 years ago
On January 1, Year 2, the Accounts Receivable balance was $32,200 and the balance in the Allowance for Doubtful Accounts was $4,
AlexFokin [52]

Answer:

$28,200

Explanation:

The computation of the net realizable value of account receivable is shown below:

As we know that

Net realizable value is

= Account receivable balance - balance in the Allowance for Doubtful Accounts

= $32,200 - $4,000

= $28,200

we simply deduct the allowance from the account receivable balance so that net realizable value could arrive

3 0
3 years ago
OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the
MrMuchimi

Answer:

In accrual basis accounting, expenses are recorded in the period when their matching revenues are obtained.

In this case, even if the full interest will be paid at maturity, interest expense will still be recorded in each period according to the information that we are given in the question.

Interest expense to be recorded by December 31

5,200,000 * 0.12 = 624,000 / 2 = 312,000

Interest expense to be recorded by September 30

5,200,000 * 0.10 = 520,000 * 3/12 = 130,000

Interest expense to be recorded by October 31

5,200,000 * 0.09 = 468,000 * 4/12 = 156,000

Interest expense to be recorded by January 31

5,200,000 * 0.06 = 312,000 * 7/12 = 182,000

3 0
3 years ago
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