Answer:
Motorcycle A/c Dr. 65,000
To Cash A/c 65,000
Motorcycle is asset
asset will be Dr. when increase
Cash is asset and
asset will be Cr. when decrease
buying motorcycle from cash,
Motorcycle coming cash going
Motorcycle → Debit
Cash → Credit
Answer:
The new income will be higher by $22,800.
Explanation:
The net income is the actual earnings of the business which is determined from the profit or loss statement by deducting all the expenses from the revenues earned.
The effect of the adjusting entries on the net income will be as follows:
1) Insurance expense will be of $8,000. It is charged for the period of three months only. This will decrease the net income.
2) Interest revenue will be of $1,200. It is charged for 6months. This will increase the net income.
3) The depreciation expense of $16,000. This will decrease the net income.
Therefore for the overall effect on the net income, if there will be no effect of the above adjustments then it will show net income by higher amount then the actual net income, by $22,800.
Answer:
$5,000
Explanation:
The depreciation by Green Company in respect of truck for the first year of operations shall be calculated using the following mentioned formula;
Depreciation for the year= (Cost of asset-Residual value)/useful life
Cost of asset=$30,000
Residual value=$5,000
useful life=5
Depreciation for the year=($30,000-$5,000)/5=$5,000
Answer:
Profit (loss) 4611
Explanation:
Variable manufacturing cost per unit = Total variable manufacturing cost / Total number of units = 99750 / 15000 = 6.65.
Calculation of special order :
Sales (5300 * 7.80) = 41.340
(-) Variable manufacturing costs ( 5.300 * 6.65 ) = 35.245
(-) Export fees ( 5300 * 0.28) = 1.484
Profit (loss) 4.611
