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cestrela7 [59]
2 years ago
8

ABC Tax Planning Service started business in January 2018. The company rented an office for $5,400 per month starting from Janua

ry 1, 2018. On that day, ABC prepaid the rent through June 30. The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2018?
Business
1 answer:
Sholpan [36]2 years ago
6 0

Answer:

balance in the Prepaid Rent account as of April 30 is $10800

Explanation:

given data

rent office =  $5,400 per month

rent paid = 6 month i.e January 1 to June 30

to find out

balance in the Prepaid Rent account as of April 30

solution

we know here that Period Expired till April 30 = 4 months ( January 1 to April 30)

and

so Period Balance = 2 Months  ( May 1 to June 30 )

so Prepaid Rent is = Balance Period × Rent per month

Prepaid Rent = 2  × 5,400

Prepaid Rent = $10800

so balance in the Prepaid Rent account as of April 30 is $10800

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In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices
LenaWriter [7]

Answer:

A) production is determined by the interaction of supply and demand.

Explanation:

A  pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a  pure market economy

  • Private ownership of means of production
  • freedom of choice. Producers are free to produce what they desire
  • competition among producers
  • no government intervention.

4 0
3 years ago
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon
nlexa [21]

Answer:

Cash proceeds is $37,702,607.23  

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24  

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23  

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36  

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36  

premium amortized=$214,869.64  

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

                           =$1,874,386.88  

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2  

                                                           =$1,885,130.362

Bond expense for the first payment=  37,487,737.59  *10%/2  

                                                           =$ 1,874,386.88  

First year bond interest expense= 1,874,386.88+1,885,130.362  

                                                      =$ 3,759,517.24  

                                                     

Find attached schedule in addition

Download xlsx
4 0
3 years ago
Jessica simpson has decided to open a small fast food place that specializes in buffalo wings. to do so she must resign from her
In-s [12.5K]

Answer: Jessica's implicit costs are $46,000.

Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.

In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are:

Total implicit cost = 40000+6000 = 46000

6 0
2 years ago
What are the main strengths and weaknesses of each of the competitive strategies: home replication, multidomestic, regional, glo
balu736 [363]

One of the strengths of a home replication strategy is related to the local infrastructure, while its weak point is the need to respond to the local market.

The multidomestic strategy, on the other hand, has as a strong point the relationship with local customers and the possibility of expanding the business. The weak point is related to costs and ethnocentrism.

In a regional strategy, the advantages are related to infrastructure costs and weaknesses in business expansion, unlike global and transnational strategies, where strengths relate to business growth, and weaknesses to costs and local bureaucracy.

<h3 /><h3>What is a competitive strategy?</h3>

It is the way the organization finds to compete in the market and increase its advantage over competitors. Competitive strategy includes the structure of the company, its marketing, products and services, and when effective, it increases a company's positioning and long-term success.

Therefore, in each competitive strategy approach, companies must align their objectives and goals in relation to their values, needs and desires of consumers, instituting creativity and innovation in all their processes.

Find out more about competitive strategy here:

brainly.com/question/26356446

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4 0
2 years ago
If we believe that "variety is the spice of life," then we should be more concerned about the excess capacity in monopolistic co
Sedaia [141]

Answer:

B) False

Explanation:

One of the main characteristics of monopolistic competition is that many suppliers sell products that are different from one another, so they cannot be considered perfect substitutes. For example, restaurants usually operate under monopolistic competition since they all offer similar services but at the same time they are all different.

So if you like variety, then you should like monopolistic competition.

4 0
3 years ago
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