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Mademuasel [1]
3 years ago
15

Whispering Winds Company had the following two transactions related to its delivery truck. 1. Paid $250 for an oil change. 2. Pa

id $800 to install a special gear unit, which increases the operating efficiency of the truck.
Business
1 answer:
inessss [21]3 years ago
8 0

Answer:

Journal Entries

Account                                                    Dr.        Cr.

1.

Repair and maintenance Expense       $250

Cash                                                                    $250

2.

Delivery truck                                         $800  

Cash                                                       $800

Explanation:

Property, plant and equipment are reported in the Fixed asset of the balance sheet. These assets are the depreciated. Fixed assets are initially recorded at cost.

Initially the amount capitalized includes the acquisition cost or purchase price and any direct cost incurred to make asset ready to use.

Any cost incurred to improve the efficiency of the asset will also be capitalised. In this question oil change is a routine maintenance cost  needed to operate the asset. Installation of Special gear unit actually improved the efficiency of the asset as a whole. So, it is capitalised.

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The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increase
Sonbull [250]

Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

7 0
3 years ago
What is the most important source of revenue and the major type of expenditure at the Federal level? At the state level? At the
Margarita [4]

The largest share of the revenues from property taxes and sales and gross receipts taxes are generally received from state and local governments. Individual income taxes are another major source of income.

Explanation:

In fiscal 2010 the total US government and local tax revenues—35% came from property taxes and 34% from sales and gross taxes. In 2010, local governments collected a little more than 75% of their 2010 property tax receipts. Local government tax revenues are primarily financed by property taxes.

Nevertheless, sales taxes and gross income taxes were the major source of revenue for governments. In 2010, the Member States received less than half of their income from sales and gross receipts taxes.

5 0
3 years ago
A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for moldi
atroni [7]

Answer:

Check the explanation

Explanation:

Going by the question above we will have to first work on the

Formulation of LP:

Maximize profit

Z = 1.5A+1.5B where A - number of units of product A and B - number of units of product B

subject to constraints -

600 minutes available for molding

3A+2B <=600 ---> Molding constraint---> 1

600 minutes available for painting

2A+4B<=600 ---> Painting constraint---> 2

420 minutes available for packing

A+3B<=420 ---> Packing constraint---> 3

A, B, C >=0 ---> Non-negative constraint ---> 4

b) Solution with the help of Excel solver:

Target cell will be the RHS or profit value of the objective function as we are maximizing the profit.

Changing cells will be A and B ---> number of units of products

Constraints will be entered as below. The same are also listed in part A (1,2,3,4).

The attached images below are the formulation.

6 0
3 years ago
What is the basic equation of an income statement? Select one: a. Assets = Revenues – Expenses b. Net income or loss = Revenues
Mashutka [201]

Answer:

c. Assets = Liabilities + Equity

Explanation:

Assets = Liabilities + shareholders equity is also known as the balance sheet equation.

It is the basis for the double-entry bookkeeping system

7 0
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A professor surveys her class about whether the number of breaks is adequate for the three-hour course. for her survey, she assi
Rom4ik [11]
<span>Her survey will be both a representative and a random sample. The sample is random since the students are randomly chosen by the professor's computer program and each student has an equal chance of being chosen. The survey is representative since the student chosen will represent the whole class.</span>
8 0
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