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3 years ago

What is service marketing meaning

1 answer:

3 0

Example when a person goes to a dentist he use the services of the dentist and returns with a relief. In the process he does not get any physical commodity but still he has consumed a service. Core goods providers provide a significant service component as part of their businesses.

The American Marketing Association defines services marketing as an organisational function and a set of processes for identifying or creating, communicating, and delivering value to customers and for managing customer relationship in a way that benefit the organisation and stake-holders.

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Babcock Company purchased a piece of machinery for $36,000 on January 1, 2019, and has been depreciating the machine using the s

pogonyaev

Answer:

Requirement 1:

Dr Accumulated Depreciation $9,600

Cr Retained Earnings Account $9,600

Requirement 2:

Dr Depreciation Expense $6,000

Cr Accumulated Depreciation $6,000

Explanation:

Year Remaining Life of machine Depreciation fraction

1 5 5/15

2 4 4/15

3 3 3/15

4 2 2/15

5 1 1/15

Total 15

Now here, the depreciation formula is as under:

Depreciation expense = (Cost - Salvage Value) * Fraction value

Year 2019:

The sum of years digit fraction would be 5/15 and the cost of the machinery is $36,000. So

Depreciation Expense = ($36,000 - 0) * 5/15 = $12,000

Year 2020:

The sum of years digit fraction would be 5/15 and the cost of the machinery is $36,000. So

Depreciation Expense = ($36,000 - 0) * 4/15 = $9,600

Year 2021:

Now in this year the there is change in estimate and a switch in the use of the depreciation method, which is now straight line method. The change in estimate only includes the useful life of the asset which is 6 years from the date of purchase.

So for straight-line depreciation:

Depreciation Expense = (Cost - Salvage Value) / Useful Life

By simply putting values, we have:

Depreciation Expense = $36,000 / 6 years = $6,000 per year

So this means, according to change in accounting policy, the excess depreciation charged must be eliminated from the previous years. The depreciation charge for the previous 2 years must be $12,000 and the excess depreciation charge is calculated as under:

Carrying value of the asset = $21,600 - $12,000 = $9,600

Requirement 1:

The double entry according to the US GAAP, for the excess depreciation charge in the previous years would be the waiving off of retained earnings with the excess depreciation amount calculated above.

Dr Accumulated Depreciation $9,600

Cr Retained Earnings Account $9,600

Requirement 2:

The depreciation expense for the year 2021, would be recorded as under:

Dr Depreciation Expense $6,000

Cr Accumulated Depreciation $6,000

3 0

3 years ago

On January 1, 2010, Sunshine company issues bonds maturing in 10 years. The par value of the bonds is $500,000, the annual coupo

zheka24 [161]

Answer and Explanation:

a. The bonds is issued at a discount, since the coupon rate is lower than the interest rate on the market.

b. Par value = $500,000.

Annual coupon = Par value of bonds × Coupon rate

= $500,000 × 4 %

= $20,000

Interest rate = 6%

n = 10

Present value of an annuity 6%, n = 10 = ((1 - ( 1 ÷ 1.06 ) × 10) ÷ 0.06)

= 7.3601

Present value 6%, n = 10 = (1 ÷ 1.06) × 10

= 0.5584

Issue price of the bonds = Annual coupon × Present value of an annuity + Par value of bonds × Present value

= $20,000 × 7.3601 + $500,000 × 0.5584

= $147,202 + $279,200

= $426,402

3.The Journal entry is shown below:-

Cash Dr, 426,402

To Discount on Bonds Payable $73,598

To Bonds Payable $500,000

Being cash is recorded)

4. Interest expense for the year ended December 31, 2010 = Issue price of the bonds × Interest rate

= $426,402 × 7%

= $29,848.14

5. The Journal entry is shown below:-

Interest Expense Dr, 29,848

Discount on Bonds Payable Dr, 9,848

To Cash $20,000

(Being interest expenses is recorded)

6. Over the years the interest rate would rise as the bonds were issued at a discount.

6 0

3 years ago

The Federal Reserve can affect the money supply by

vampirchik [111]

C if not please comment back :))

7 0

3 years ago

A company using activity-based costing has the following overhead activities and costs: factory maintenance $50,000; machine set

Elena-2011 [213]

Answer:

$75,000

Explanation:

Given that,

Factory maintenance = $50,000;

Machine setup = $100,000;

Heating and lighting = $25,000

Machine repair = $10,000

Therefore,

Total costs are as follows:

= Factory maintenance + Heating and lighting

= $50,000 + $25,000

= $75,000

Therefore, the total costs in the plant services activity are $75,000.

4 0

3 years ago

Ruth, a 58-year-old taxpayer, has a self-only health savings account (HSA) and was enrolled in a high-deductible health plan (HD

vodomira [7]

Answer:

(A) $1,000

Explanation:

Health Savings Account (HSA) is an account that offers tax advantages to those individuals who are covered under high deductible health plans(HDHPs).

Both Employers and Employees make contributions to such an account.

Under the laws, the maximum contribution allowable is $3400 by both employers and employees.

Such contributions can be used for qualified medical expenses.

Individuals who are above 55 years of age can contribute an additional $1000 per person per year as per the law which can be of much help to early retirees.

Hence, Ruth is allowed to make an additional contribution of $1,000.

7 0

3 years ago