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IrinaVladis [17]
3 years ago
12

"Sheridan Processes is involved with innovative approaches to finding energy reserves. Sheridan recently built a facility to ext

ract natural gas at a cost of $12.8 million. However, Sheridan is also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $16 million (the present value of which is $6.3 million). What is the journal entry required to record the asset retirement obligation
Business
1 answer:
gladu [14]3 years ago
4 0

Answer:

Natural gas is debited by $6.3 million and asset retirement obligation is credited by $6.3 million.

Explanation:

According to the scenario, computation of the given data are as follow:-

Estimated cost = $16 million

Present value = $6.3 million

So, we will make journal entry for asset retirement obligation by taking present value of assets.

Journal entry to record the asset retirement obligation are as follows :-

Natural gas facility A/c  Dr.   $6,300,000

To Asset retirement obligation A/c  $6,300,000

( Being asset retirement obligation is recorded)

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The Google My Business messaging tool allows customers to reach business owners through what type of communication?
serg [7]

Answer:

Text Messaging

Explanation:

Business messaging tools are widely use for individuals to create communication with the other individuals or organisations

Use of messaging for industry helps everyone to connect in plain text with other individuals, unlike most of the result of internet communications that you have to delay for until the communication is retrieved from the recipient's server.

3 0
3 years ago
Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers, Golf Guide sends a sma
kherson [118]

Answer:

Cost per customer acquired = $51.67

Explanation:

Customer acquired per thousand pieces mailed = 1000*6% = 60

Total cost per thousand pieces mailed A    $3,100

Divide by Customers acquired  B                <u>   60     </u>

Cost per customer acquired A/B                <u>  $51.67</u>

7 0
3 years ago
Which of the following features of information systems can be used to help a business increase production and save time?
svlad2 [7]
Automated tasks      
 
 
 
 
 
 
 
 ......................................................................................................................                                                                                  
4 0
3 years ago
By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing mana
KiRa [710]

Answer:

a measurable goal

Explanation:

A measurable goal is a part of the S.M.A.R.T goals that brings structure and trackability into your goals and objective.

By greeting and possibly knowing customers names the services marketing manager can to be able to attract more customers not just by understanding what the customer needs but being able to relate available product or services to them.

By so doing the service marketing manager can be able to measure what exactly he/she has achieved after providing the required service to the customer

4 0
3 years ago
Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 parvalue bonds have a quoted annual interest rat
gulaghasi [49]

Answer:

Price of the Bond is $868.82

Explanation:

Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]

Whereas

C = coupon payment = $110.00 (Par Value x Coupon Rate)

n = number of years = 7

r = market rate, or required yield = 14% = 0.14

P = value at maturity, or par value = $1,000

Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]

Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]

Price of the Bond = $481.0+$387.82

Price of the Bond = $868.82

8 0
3 years ago
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