Answer:
Journal entry to record sale of toasters and warranty
Dr Cash 36,000
Cr Sales revenue 36,000
Dr Warranty expense 2,400
Cr Warranty liability 2,400
Adjusting entry for actual warranty expense
Dr Warranty liability 500
Cr Cash 500
Since the warranty covers a 5 year period, the remaining warranty expense cannot be recognized as warranty revenue yet. Only after the warranty period is over, will any money left over will be recognized as revenue.
Answer:
The correct answer is letter "C": Ability of a firm to pay the interest on its debt.
Explanation:
The cash coverage ratio is a metric that measures a company's ability to pay its financial obligations. Generally, the higher the coverage ratio the better for the business to meet its debt obligations. It is best to compare coverage ratios of companies in the same industry or sector in the economy. Comparisons across industries are not useful as companies in different industries use debt in different ways.
Answer and Explanation:
Data provided
Depreciation = $185 million
The Journal entry is shown below:-
Depreciation expense $185 million
To Accumulated depreciation $185 million
(Being depreciation expenses is recorded)
Here we debited depreciation expense as expenses are increasing whereas we credited the accumulated depreciation as the assets decreasing.
Answer:
$164,210 decrease
Explanation:
Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=
Differential cost increase or decrease=$525,472-$361,262
Differential cost increase or decrease=$164,210 decrease
Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease
Consumer surplus is difference between the amount that consumers are willing and able to pay for a good or service
In this case, Nicki is willing to pay $1,100 for the camera, but she is only asked to pay 900. So Nicki has a consumer surplus of $200
