Answer:
$140,000 and $195,000
Explanation:
The computations are shown below:
Accounting cost would be
= Jill salary + material and other labor costs + Insurance and mortgage payment
= $40,000 + $80,000 + $20,000
= $140,000
The economic cost would be
= Accounting cost + investment left + loss in salary + loss in rent
= $140,000 + $5,000 + $30,000 + $20,000
= $195,000
The loss in salary would be
= $70,000 - $40,000
= $30,000
The loss in rent would be
= $40,000 - $20,000
= $20,000
The metric system is based on the number 10 so that in linear measurement, there is a mm, a cm a metre and a kilometer such that10mm = 1cm and 100 cm = 1 metre and 1000 metres = 1 kilometre. In volume, there is the ml and the litre such that 1000ml=1litre and with grams and kilograms, 1000 grams = 1 kilogram.
Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
Answer:
$1,600
Explanation:
It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600
Answer:
d.$8,327
Explanation:
The computation of the amount used in the adjusting entry is shown below:
= Beginning balance of office supplies + supplies purchased - ending balance of office supplies
= $7,362 + $3,421 - $2,456
= $8,327
The adjusting entry is
Supplies expense $8,327
To Supplies A/c $8,327
(Being the supplies expense is recorded)
For recording this transaction we debited the supplies expense as it increased the expense account and credited the supplies account as it reduced the asset account
