Answer:
The journal entry should be:
Dr Investment in Leghorn Corporation XX
Cr Accounts receivable XX
Explanation:
Foghorn Company must record the noncash payment as an asset which should be equal to the amount of money that it generally would have collected from the services provided. Since the payment is done through stocks, it must record that collection as an investing account.
Since transferring stocks usually takes a couple of days at least, the original journal entry should have recorded a debit to accounts receivable and a credit to service revenue.
Answer:
$71,000
Explanation:
The computation of operating income is shown below:-
Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)
= (43,000 × $3.80) + ($68,000 × (100% - 30%))
= (43,000 × $3.80) + ($68,000 × 70%)
= $163,400 + $47,600
= $211,000
Loss in Income if part is bought = Total costs if company bought - Total costs originally
= $211,000 - $140,000
= $71,000
Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.
Answer:
The correct answer is: shortage; elastic; same number of.
Explanation:
Suppose the price ceiling is fixed at $50. The market equilibrium price is more than $50. This means that the price ceiling is binding.
Fixing the price ceiling below the equilibrium price level will create a shortage of tickets. There is an inverse relationship between price and quantity demanded. So the quantity demanded will be higher at a lower price. The quantity supplied on the other hand will be lower. This is because the quantity supplied is positively related to the price.
So at the ceiling price the quantity demanded will be higher than the quantity supplied. This shortage will be more if the demand is elastic. An elastic demand implies that a decrease in price will cause the quantity demanded to increase to a greater extent.
Answer:
$40
Explanation:
The computation of the premium pay for the next year is shown below:
= Estimated medical bills × given percentage for next year
= $4,000 × 1 %
= $40
By multiplying the estimated value of medical bills with the next year given percentage, the premium for the next year can come
All other information that is given in the question is not relevant. Hence, ignored it
