1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
No matter what way you approach raising money for your business, you will need a ________. written business plan family investme
Alborosie

Answer:

The correct answer is letter "A": written business plan.

Explanation:

A business plan outlines the objectives a company wants to achieve and the strategies it decided to use for such purpose. Business plans are set after the company has identified and recorded the core competencies and resources it has to make the project become reality. Business plans are useful to establish the steps an organization should follow to accomplish every firm's ultimate goal: <em>generate profit</em>.

3 0
3 years ago
What is the law of demand and supply<br><br><br>​
Svetradugi [14.3K]

Answer:The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the availability of a particular product and the desire (or demand) for that product has on its price.

Explanation:

8 0
3 years ago
What type of job can i get with a finance and marketing double major
lora16 [44]
You can get jobs such as social media manager, accountant, advertising manager, marketing analyst, marketing manager, financial planner, budget planner
6 0
2 years ago
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. Fo
soldi70 [24.7K]

Answer:

product line

Explanation:

A product line is a group of related products sold by a business under the same commercial brand.

For example, the company might produce a love Teddy for Valentine's Day, GI Teddy for Veteran's Day, Pilgrim Teddy for Thanksgiving, and Santa Teddy for Christmas.

4 0
3 years ago
Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $3
Alexandra [31]

Question:

Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points

What is the present value of the cost of leasing?

Answer:

Cost of lease = $37,179.01

Explanation:

Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.

The cost of a lease to the leasee is the present value of the future lease payment  discounted at the cost of capital.

So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:

PV =A×  (1- 1+r)^(-n)/r

PV- Present Value

r- interest rate

n- number of years

A- annual lease payment

PV -

A-7,800

r-7%

n-6

PV = 7,800× (1- (1.07)^(-6)/0.07 =  37,179.01  

Present Value = $37,179.01

Cost of lease = $37,179.01

5 0
3 years ago
Other questions:
  • Select the correct answer.
    15·1 answer
  • At the beginning of the recent period, there were 900 units of product in a department, one-third completed. These units were fi
    8·1 answer
  • Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. 2016 Total
    8·1 answer
  • _____ refer(s) to the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it
    9·1 answer
  • In the accompanying figure, you can enter CSU10 in the ____ row of the Customer Number field to find all customers whose custome
    10·1 answer
  • Exercise 4-2A Allocating costs between divisions Beasley Services Company (BSC) has 50 employees, 28 of whom are assigned to Div
    14·1 answer
  • A company's beta (from the CAPM) is affected by its capital structure. a. True b. False
    14·1 answer
  • the area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a ma
    14·1 answer
  • You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,
    6·1 answer
  • Which of these is a reason a closed culture is
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!