Answer:
$3,000.
Explanation:
Existences of supplies from previous month: $0
Bought supplies during June: $5,000
Supplies unused ar the end of June: $2,000
Supplies used during June = Existences of supplies from previous month + Bought supplies during June - Supplies unused ar the end of June
Supplies used during June = $0 + $5,000 - $2,000
Supplies used during June = $3,000
The adjusting entry to record an accrued expense is:
Debit to Supplies expense account (increases of expense)
Credit to Supplies stocks account (decreases of asset)
Answer:
department store
Explanation:
A department store is a type of retailer that offers a wide range of diverse products. Each product group is classified into a department, thus the name "department store". When customers buy products, they usually check out near the exit of the whole department store, although there are some check-out counters in each department. Also, customer service is always present, mostly in the form of numerous sales clerks providing a helping hand.
They can include almost any range of products: toiletries, furniture, home decor, clothes, toys, hardware... Some famous examples are: Le Bon Marché in Paris, Selfridges in the UK, Macy's in the USA...
On the other hand, a <em>discount store</em> usually offers a broad product range, low prices, but little to none customer service. <em>Specialty stores</em> have a narrow target group as they offer a limited assortment.
Answer:
It is a better deal to keep the old equipment
Explanation:
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each year the new equipment generates a 13,700 adidtional cash outflow
We should check if the cost saving per year at 8% will have a present value lower than the proceed from the sale:
C 13,700.00
time 5
rate 0.08
PV $59,076.1377
As the differential cost exceeds the amount of proceed we would get if the old equipment is sold we already conclude we should keep it
Answer:
A. revenues earned and expenses incurred in generating those revenues should be reported in the same income statement.
Explanation:
A matching principle is an accounting concept which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
The matching principle indicates when costs are recognized as expenses on the income statement.
For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the matching principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.
Hence, matching principle requires that revenues earned and expenses incurred in generating those revenues should be reported in the same income statement.
Additionally, the matching principle helps business owners to calculate their taxes and profits or losses properly.
Answer:
Explanation:
First scenario: The answer is No, not many sellers. The drug of the pharmaceutical company has patent right and it is the only firm selling this product. This makes the company a monopolist (single seller)
Second scenario: No, not an identical product. Cable company and phone company produce different products. Cable companies majorly deal with television access.
Third Scenario: no, not many sellers. One firm is dominating the market and customers prefers this. Its product has been differentiated and it can charge its own price.
Fourth scenario: yes,meets all assumptions. The socks are identical and consumers do not care about the seller because the same utility will be derived from the socks.
