Answer and Explanation:
1. The Journal entry is shown below:-
Notes receivable Dr, $33,000
To Sales revenue $33,000
(Being sales is recorded)
2. The computation of interest is shown below:-
Interest = $33,000 × 4% × 6 ÷ 12
= $660
3. The Journal entry is shown below:-
Cash Dr, $33,660
To Interest income $660
To Notes receivable $33,000
(Being collection of notes receivable is recorded)
Answer:
The money in the 401(k) account is not taxed until withdrawn.
Explanation:
A 401 (k) can be defined as a type of compensation (savings) plan that is being sponsored by a business firm or company (employer) to avail its employees the opportunity to contribute into. As a company-sponsored and defined-contribution retirement savings plan, it offers tax advantages to the employees because it reduces their income tax for the particular year while taxing their withdrawals.
A good reason to contribute to a 401 (k) retirement account is that, the money in the 401 (k) account is not taxed until withdrawn. Thus, the money contributed by an employee to a 401 (k) will maintain its tax-deferred status until he or she withdraws it.
For example, a 401 (k) would be the best retirement savings option for a 50-year old medical doctor whose employer offers a 5% contribution match.
Answer:
The correct answer is option C.
Explanation:
An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.
Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.
The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.
Answer:
answer is b) False
Explanation:
given data
contribution margin = $10
selling price = $25
total fixed costs = $500
break-even point = 100 units
solution
we get here Break even point that is
Break even point = 
...........1
Break even point = 
Break even point = 50 units
but we have given break-even point is 100 units
so answer is b) False
Answer:
Explanation:
Given the following data about Dayna's Doorstep Inc(DD) :
Cost given by; C = 100 - 5Q + Q^2
Demand ; P = 55 - 2Q
A.) Set price to maximize output;
Marginal revenue (MR) = marginal cost (MC)
MR = taking first derivative of total revenue with respect to Q; (55 - 2Q^2)
MC = taking first derivative of total cost with respect to Q; (-5Q + Q^2)
MR = 55 - 4Q ; MC = 2Q - 5
55 - 4Q = 2Q - 5
60 = 6Q ; Q = 10
From
P = 55 - 2Q ;
P = 55 - 2(10) = $35
Output
35(10) - [100-5(10)+10^2]
350 - 150 = $200
Consumer surplus:
0.5Q(55-35)
0.5(10)(20) = $100
B.) Here,
Marginal cost = Price
2Q - 5 = 55 - 2Q
4Q = 60 ; Q = 15
P= 55 - 2(15) = $25
Totally revenue - total cost:
(25)(15) - [100-(5)(15)+15^2] = $125
Consumer surplus(CS) :
0.5Q(55-25) = 0.5(15)(30) = $225
C.) Dead Weight loss between Q=10 and Q=15, which is the area below the demand curve and above the marginal cost curve
=0.5×(35-15) ×(15-10)
=0.5×20×5 = $50
D.) If P=$27
27 = 55 - 2Q
2Q = 55 - 27
Q = 14
CS = 0.5×14×(55 - 27) = $196
DWL = 0.5(1)(4) = $2
