Answer:
A. a debit to Interest Expense for $ 36, 000
Explanation:
Based on the information given we were told that Flipco has note payable on January 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5% interest. This means that the Journal entry to record the transaction on December 31, 2019 will includes a Debit to interest expense for $36,000 calculated as :
Interest expense= $800,000-$80,000
Interest expense=( $720,000* 5%* 12/12)
Interest expense =$36,000
Therefore the Journal entry to record the annual payment on December 31, 2019 will includes :
A Debit to interest expense for $36,000
I think the most appropriate answer would be B.
I hope it helped you!
Answer and Explanation:
The summary of the process cost involves the physical flow of units, equivalent units of production, cost per equivalent unit, and the total cost assignment to the units worked on the given time period
Only these four things would be shown in the summary of the process cost
Other than this would be ignored
Answer:
The correct answer is E
Explanation:
Fee-commission combination is the term which is described as an agency which charges the fixed fee and it is charged on monthly basis for the services that is offered to the clients and the medial commissions earned are the one who are retained by the agency.
Therefore, the fee-commission combination is the kind of compensation contract where the agency charges the client a fixed monthly payment for the services.
Answer:
RELATIVELY INELASTIC
more elastic
less
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase
If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall
In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run
If the long run, price is increased, the total quantity demanded would fall and revenue would fall
