Answer:
Debit Asset Improvement account $105,000
Credit Cash account $105,000
Being entries to record cost of modernization of store.
Explanation:
The cost of the modernization is a cost that will be capitalized with the cost of the store as an asset. When an asset is purchased for cash, the adjusting entries required are;
Debit Fixed asset account
Credit Cash account
The modernization will be recognized in the Asset improvements account hence the debit entry will be posted there while the corresponding credit will go to cash account.
Answer:
The opportunity costs may be too high, and the motel may not yield high enough returns to offset them.
Opportunity costs is the money you do not earn for choosing one alternative investment or action over another. In this case, the cost of the land is probably very high and the motel (or any other business) might not be making as much money from their regular operations as they could from selling the land and using that money for another investment.
A business will shut down when their economic costs exceed their revenue.
Answer:
a). $12,850 b.) 550
Explanation:
a). Shareholder equity
The shareholder equity consists of the shareholder capital contributions plus the retained earnings. calculating the shareholder's equity is through the formula shareholder equity = total assets -total liabilities
In this case,
Total assets = $5,000,+ $23,300= $28,300
Total liabilities = $4,450 + $11,000 + $15,450
Shareholder equity = $28,300 -$15,450 = $12,850
b). Net working capital
Net working capital is the difference between current assets and current liabilities. i.e., net working capital is current assets - current liabilities
current asset = $5000
Current liabilities = $ 4,450
Net working capital; = $5,000 - $4,450= $550
Answer:
Debit Unearned Revenue $5,480
Credit Revenue $5,480
Explanation:
On December 31, 6 months has been passed so, the revenue of 6 months should be recorded as the payment was recorded as unearned revenue on July 1. The revenue account will be credited by the 6 months revenue amount and unearned revenue account will be debited to reduce the amount by the six month accrual.
Total Unearned revenue = $10,960
Unearned revenue per month = $10,960 / 12 = $913.33
revenue for six months = 913.33 x 6 = $5,480
Trade secrets they help companies to stay competitive by,
1. Misappropriation. A company discovery this trade secrete through the lawful methods of employee poaching or reverse engineering and the unlawful ones. For example, industrial espionage.
2. Protection. The owners who protects the trade secrete from the competition by having special procedures on how to handle it and legal security measures and technology.
3. Value. The value of a company trade secrete is measured by way of capitalization of market which is major and invisible whereby it is hard to measure the contribution.
Trade secret is termed as the pattern, instrument, practice, process and formula and compilation of information which is not known by others where a business can have advantages over the customers or the competitors.
