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jarptica [38.1K]
2 years ago
7

Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year,

Scott sold the business for $4,100,000. His accounting profits is:
Business
1 answer:
Veseljchak [2.6K]2 years ago
7 0

Answer:

$100,000

Explanation:

Accounting profit = Revenue - Explicit Cost

$4,100,000 - $4,000,000 = $100,000

Accounting profit does not taken into account opportunity cost or implicit cost. The implicit cost here is the amount of interest forgone by starting the store

This interest rate would have been earned if he left the money in his account

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Many farmers practice "crop rotation" by planting a field with corn one year and soybeans the next. why might they do this?
lisabon 2012 [21]

The reason that they do this because rotating crops has the capability of keeping the nitrogen from being depleted in the soil as nitrogen fixing bacteria are likely to be found in the nodules of the roots of the soybeans and not on the corn’s roots that makes soybeans the next after the corn is planted first.

8 0
3 years ago
ranfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,0
Snowcat [4.5K]

Answer:

If discontinued, then their operating income will decrease by 168,800

It is a better deal to continue the backpack division active.

Explanation:

sales                  960,000

variable cost    (475,000)

contribution      485,000

fixed cost          (527,000)

loss                     (42,000)

if Dropped

40% of fixed cost are unavoidable

527,000 x 40% = (210,800)

Difference: 42,000-210,800 = (168,800)

5 0
3 years ago
Read 2 more answers
Based on the principles of psychological pricing, which of the following price adjustment would likely have the greatest positiv
saul85 [17]

Answer:

D.) $50 to $49

Explanation:

a p e x

6 0
3 years ago
The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and administrative.
yuradex [85]

The preparation of the necessary journal entries for The Fine Art Museum is as follows:

<u>Journal Entries</u>:

a. Debit Cash $500,000

Credit Admissions Fees $500,000

  • To record the receipt of admissions fees in cash from visitors.

b. Debit Cash $250,000

Credit Admissions Fees $250,000

  • To record the receipt of special admissions fees for "Friends of the Museum."

c. Debit Salary Expense $250,000

Credit Salary Payable $60,000

Credit Cash $190,000

  • To record salary expense paid and payable.

d. Debit Operating Expenses $400,000

Credit Operating Expenses Payable $30,000

Credit Cash $370,000

  • To record operating expenses paid and payable.

Debit Supplies $50,000

Credit Operating Expenses $50,000

  • To transfer operating expenses to Supplies.

Debit Supplies Expense $30,000

Credit Supplies $30,000

  • To record supplies expense for the year.

e. Debit Pledges Receivable $200,000

Debit Cash $150,000

Credit Pledges Receivable $150,000

Credit Allowance for Uncollectible Pledges $30,000

  • To record pledges receivable and allowance for uncollectibles.

f. Debit Cash $600,000

Credit Sale of collections $600,000

  • To record the sale of wonderful collections from a will.

Data Analysis:

Allocation of Expenses:

Programs = 80%

General and Administrative = 20%

a. Cash $500,000 Admissions Fees $500,000

b. Cash $250,000 Admissions Fees $250,000 ($25 x 10,000)

c. Salary Expense $250,000 Salary Payable $60,000 Cash $190,000

d. Operating Expenses $400,000 Operating Expenses Payable $30,000 Cash $370,000

Supplies $50,000 Operating Expenses $50,000

Supplies Expense $30,000 Supplies $30,000

e. Pledges Receivable $200,000 Estimated Receivable Pledges $170,000

Uncollectible Pledges $30,000

Cash $150,000 Pledges Received $150,000

f. Cash $600,000 Sale of collections $600,000

Learn more: brainly.com/question/16781277

3 0
2 years ago
All the long-term debt of a government, including the long-term debt that will be financed by Enterprise Fund revenues, is repor
Studentka2010 [4]

Answer: False

Explanation:

False.

Long term debt is a debt owed by an economic entity which could either be the inividual, a business or the government and such debts are expected to mature in a period of at least one year.

It should be noted that the long term debt isn't reported in fund level financial statement but rather it's reported in government wide statements.

3 0
3 years ago
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