Answer:
Consumer surplus is $15.99.
Explanation:
Melanie decided to buy a coat priced $79.95.
When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.
This means that her consumer surplus is at least $15.99.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.
Answer:
Debit Insurance Expense 440
Credit Prepaid Insurace 440
Explanation:
Since on January 1, the company purchased a five year insurance policy for $2,200 that means we have to divide the insurance policy amount of $2,200 by the numbers of year which is 5 years .
Hence:
$2,200/5 years
=440
Therefore the adjusting entry at the end of the first year is:
Debit Insurance Expense 440
Credit Prepaid Insurace 440
Answer:
Accumulated depreciation = ($480,000 - $50,000)/5 *6/12 + $301,000
Accumulated depreciation = $43,000 + $301,000
Accumulated depreciation = $344,000
Date Account titles & Explanations Debit Credit
Cash $146,000
Accumulated depreciation $344,000
Gain on disposal $10,000
Equipment $480,000
So, the gain on disposal is $10,000
Answer and Explanation:
The journal entry is shown below:
Unrealized Loss - Income ($3,000 - $2,800) $200
To Fair value adjustment - trading $200
(being the adjustment to fair value for trading securities is recorded)
Here the unrealized loss would be debited and the fair value adjustment would be credited
Answer:
-jerry is entitled to monetary damages compensations due to a contract breach.
-Freddy has to pay Jerry $90
Explanation:
the damage that the gym is entitled to would be that of a contract breach. Freddy wanted to earn more money so he breached the contract. Now given that Jerry had to go with another supplier of water at a greater cost of 50 dollars for 9 months, just to satisfy his requirements. Freddy has to pay him monetary damages for this breach in contract. he has to pay the difference that exists between the price in the contract they had and what jerry now has to pay due to the breach. The difference is 10 dollars, which is to be paid every month for 9 months
= (50 - 40)*9
= 10 * 9 = $90