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Alik [6]
3 years ago
14

Gordon Company started operations on January 1 of the current year. It is now December 31, the end of the current annual account

ing period. The part-time bookkeeper needs your help to analyze the following three transactions:
a. During the year, the company purchased office supplies that cost $2,300. At the end of the year, office supplies of $670 remained on hand.
b. On January 1 of the current year, the company purchased a special machine for cash at a cost of $23,500. The machine's cost is estimated to depreciate at $2,350 per year.
c. On July 1, the company paid cash of $840 for a two-year premium on an insurance policy on the machine; coverage began on July 1 of the current year.
Business
1 answer:
ryzh [129]3 years ago
4 0

Answer:

Gordon Company

Analysis of Transactions at December 31:

a. Office Supplies $670 (DR)

  Office Supplies Expense $1,630 (DR)

b. Equipment $23,500 (DR)

   Accumulated Depreciation on Equipment $2,350 (CR)

   Depreciation Expense - Equipment $2,350 (DR)

c. Prepaid Insurance $630 (DR)

   Insurance Expense $210 (DR)

Explanation:

1. The Office Supplies Account will be debited with $2,300 and credited with $1,630 ($2,300 - $670) as Office Supplies Expense (used supplies) for the year.  This will leave a debit balance of $670 in the account.

2. The equipment account will be maintained at its cost, while a contra account (accumulated depreciation) is created to accumulate the depreciation expenses over the years.  The useful life of the equipment is 10 years ($23,500/$2,350) with an annual depreciation expense of $2,350.

3. The Prepaid Insurance Account will be debited with $840 and credited with $210 ($840/4) representing Insurance that expired during the year for six months.  The balance of $630 is carried forward for the remaining one and half years.

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dmitriy555 [2]

Answer:

P = $ 45833.33

Explanation:

Given data:

interest amount = $11,000

time = 4 year

interest rate = 6%

we know that

simple interest = PRT

11000 = P\times 0.06\times 4

solving for Principal amount P,

P = $ 45833.33

7 0
4 years ago
If you would like to start a company with decentralized decision making regarding day-to-day operations, but a central body of m
lesya692 [45]

Answer:

If you would like to start a company with decentralized decision making regarding day-to-day operations, but a central body of managers provides help with branding, training, and even resources and help to set up and operate the business, you might BEST consider A decentralized management structure.

Explanation:

A decentralized management structure is one in which decision-making authority is delegated to the lower level throughout the organization rather than limiting it to a few top executives. Under a strong decentralized organization, the lower level managers and employees have power to make decisions.

With this management structure in place, there is:

  • Increased expertise at each division,
  • Faster turnaround time in decision making
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4 0
4 years ago
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capi
Alex777 [14]

The firm should decrease the amount of capital used.

Solution:

The wage rate is $12 per hour and capital is rented at $8 per hour.

The marginal product of labour is 45 units of output per hour and the marginal product of capital is 65 units of output per hour.

A manager hires labour and rents capital equipment in a very competitive

market.

The ratio of marginal product of labour and wage rate

= \frac{45}{12}

= 3.75

The ratio of marginal product of capital and rent

= \frac{65}{8}

= 8.125

If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.

5 0
3 years ago
Companies use Blank______ advertisements to tell people what a product is, what it can do, and where it can be found.
BARSIC [14]

Answer:pioneering

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6 0
2 years ago
1) Illustrate how the type of work that he or she does influences a person's lifestyle. For example, contrast a farmer, a factor
steposvetlana [31]

Answer:1)The type of one job influences his lifestyle

2)No

3) value of self services in an economy includes improved customer services,more convenient , reduced overhead cost, customer satisfaction, increase productivity.

Explanation:Type of job tells a lot about people lifestyle,eg a person who spend very long hours at work hardly have adequate rest and social life.

Contrasting between farmers, school teacher and factory worker,the factory workers are semi skilled,teachers skilled and farmer could be non skilled ,the school teacher schedule is always fixed 8am to 4pm for instance so they are more organized,they are mostly in formal attire while a factory worker run shifts and may be see in safety boots and overall and may have little or erratic schedules .the farmer on the other hand has no schedule ,has relaxed routine,wear casuals and not necessarily tidy,does things when willed as most are self employed.

Even in their eating habits,farmers eat more of fresh food,while teachers eat processed foods and factory workers are more likely to eat junks or snacks.

While a school teacher may be seen with books ,a factory worker may be seen with machines and equipment and farmers with tools ,tractors etc

2)An economy can only thrive on goods and services,as both are needed for survival,a service person need commodities like foods,clothes etc to survive while a good traders cannot do without services like transportation,banking etc

3)the value of self service include overhead cost reduction,self service involves customer serving themselves with limited involvement of a third party or vendor e.g payment at pos at gas station, uses of ATM for cash withdrawal etc.

The organization uses less resources like staff,PCs to run self service this fund can be invested in other areas.

Increase customer service occurs as a result of self service , customer can do their trasaction at their pace and convenience.

4 0
3 years ago
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