Answer:
A. Accounts Payable 1,280 Cash 1,280
Explanation:
Jawbreaker Company paid $640 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $640 and a credit to Accounts Payable of $640.
The correcting entry is a debit to Accounts Payable of 1,280 and a credit to Cash of 1,280
The correct entry for payment of a creditor on account is to
Dr Account Payable........640
Cr Cash......................................640
However the opposite to the above entry was passed which will give rise to an error double the impact of the transaction value because:
1.The correct transaction to the value of $640 is missing
2. The opposite of the transaction to the value of $640 is existing.
Hence the impact of the error is double the amount which explains the reason why the correction involved twice the value of $640 which is $1,280
Answer:
a. Revenue = $23,660
b. Revenue = $40,837.50
Explanation:
a) Data and Calculations:
Minimum number of chairs to be sold under the deal = 260
Price at minimum number of chairs (260) = $91
Maximum number of chairs to be sold under the deal = 450
Discount offered for quantity above 260 = $0.25 per chair on the entire order
Price at maximum number (or just above 260 chairs) = $90.75 ($91 - $0.25)
Minimum revenue to be made under this deal = $23,660 (260 * $91)
Maximum revenue to be made under this deal = $40,837.50 (450 * $90.75)
Answer:
A a decrease in the amount of money they receive
Explanation:
If the seller levies the tax on the customer, the tax will increase the price of a product and in turn decrease the demand for the product. Decreased demand, in turn, will reduce the total revenue.
But if the seller levies the tax on themself, it will not increase the product price but lower the seller revenue directly. Either way, the revenue of the seller will be decreased.
Answer:
(i) 900 CDs
(ii) Greater than; $1,650
Explanation:
(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,
Contribution Margin = Selling price - variable cost
= $(21.5 - 9.5)
= $12
Contribution Margin *Number of CDs sold = $10,800
Break-even point for Studio A = 10,800 ÷ 12
= 900 CDs
(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.
Extra Contribution margin in Studio A = $(12-10)
= $2
Extra Fixed cost in Studio A = $(10,800 - 7,500)
= $3,300
Studio A should be chosen if sales is greater than (3300/2) = $1,650.
Answer:
The percentage loss will be "-9.08%". The further explanation is given below.
Explanation:
The given values are:
Invested amount
= 20,000
Price of purchase
= $66
Total number of shares
= 500
The borrowed amount will be:
= 
= 
When the price increase to 69.63, the gain will be:
= 
= 
($)
The total gain will be:
= 
= 
Increase in percentage will be:
= 
= 
%
Whereas if price stays quite well at $66, there is really no increase, so the percentage growth would be 0%.
If the price declines toward a loss of 62,37 per share:
= 
= 
Now,
The total loss will be:
= 
= 
The percentage loss will be:
= 
= 
(%)
