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3 years ago

Transactions involving the purchase and sale of fixed assets would be considered _______ activities.

1 answer:

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Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.

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You just stuffed yourself with a hot dog, a large tub of popcorn, and a box of milk duds while watching a movie. when you come o

Ket [755]

Answer:

This can be best explained by "incentive theory".

Explanation:

When your behavior is motivated by your desires, and that motivation may come from the environment, this is known as incentive theory. We can see the example of this theory in the given scenario which is related that a person is full but when he smells cinnamon buns he want to eat that, that smell motivate him to buy that bun.

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3 years ago

Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does

Shkiper50 [21]

The provision is not enforceable if it is a reasonable estimate of the loss on the breach.

Option - b

 Explanation: 

There are a few solutions for rupture of agreement, for example, grant of harms, explicit execution, rescission, and restitution. In courts of restricted purview, the fundamental cure is an honor of harms.

Since explicit execution and rescission are evenhanded cures that don't fall inside the purview of the officer courts, they are not canvassed in this instructional exercise.

The count of compensatory harms relies upon the kind of agreement that was broken and the sort of misfortune that was caused. Some broad rules are:

Standard measure, The standard proportion of harms is a sum that would permit the no breaching gathering to purchase a substitute for the advantage that would have been gotten if the agreement had been performed.

In situations where the expense of the substitute is theoretical, the no breaching gathering may recoup harms in the measure of the expense caused in playing out that gathering's commitments under the agreement.

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3 years ago

Trail Runner guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately

polet [3.4K]

Answer:

1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold.

To record sales during 2018:

Dr Cash 120,000

Dr Accounts receivable 480,000

Cr Sales revenue 600,000

To record warranty liability:

Dr Warranty expense 30,000

Cr Warranty payable 30,000

To record warranty related expenses:

Dr Warranty payable 10,000

Cr Cash 10,000

Instead of cash it could have been wages payable, or repair parts inventory, but since we are not given any details, the safest thing is to assume cash payments.

2. Assume the Estimated Warranty Payable is $0 on January 1, 2018. Post the 2018 transactions to the Estimated Warranty Payable T-account. At the end of 2018 how much in Estimated Warranty Payable does the company owe?Use the T-account to determine the ending balance for the Estimated Warranty Payable account.

Ending balance of warranty payable account = $20,000

Warranty Payable

debit credit

beg. bal. 0 0

warranty liability 30,000

warranty costs 10,000

end. bal. 20,000

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3 years ago

A company's activities for year two included the following: Gross sales $3,600,000 Cost of goods sold 1,200,000 Selling and admi

slava [35]

Answer:

$1,273,300

Explanation:

The computation of the net income is shown below:

= Gross sales - sales returns - Cost of goods sold - Selling and administrative expense - prior-year understatement of amortization expense + Gain on sale of stock portfolio securities + Gain on disposal of a discontinued business segment - income tax expense

where, income tax expense would be

= ( Gross sales - sales returns - Cost of goods sold - Selling and administrative expense - prior-year understatement of amortization expense + Gain on sale of stock portfolio securities + Gain on disposal of a discontinued business segment) × income tax rate

= ($3,600,000 - $34,000 - $1,200,000 - $500,000 - $59,000 + $8,000 + $4,000) × 30%

= $545,700

So, the net income would be

= $3,600,000 - $34,000 - $1,200,000 - $500,000 - $59,000 + $8,000 + $4,000 - $545,700

= $1,273,300

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3 years ago

The inflation rate is 12 percent, and the central bank is considering slowing the rate of money growth to reduce inflation to 8

Alenkinab [10]

Answer:

False

Explanation:

economist Kenji supports contractionary monetary policy because he believes that expectations adjust quickly in response to changes in policy and the efforts made by fed( an decrease in government spending and/or an increase in taxes) will be worth and the costs of reducing inflation will be less.

Whereas economist Eric, thinks that change in money supply is not a good idea to reduce inflation as it will work very slowly.

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3 years ago