1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
meriva
3 years ago
6

On January 1 of this year, Diaz Boutique pays $105,000 to modernize its store. Improvements include new floors, ceilings, wiring

, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases (does not own) its store and has eight years remaining on the lease. Prepare the entry to record the cost of modernization and amortization at the end off this current year.
Business
1 answer:
Dominik [7]3 years ago
8 0

Answer:

Explanation:

The journal entries are shown below:

1. Leasehold expense A/c Dr $105,000

        To Cash A/c $105,000

(Being the cost of modernization is recorded)

2. Amortization expense - Leasehold A/c Dr $10,500

           To Leasehold A/c $10,500

(Being amortization expense is recorded)

The computation is shown below:

= Purchase cost  ÷ estimated yield benefits

= $105,000 ÷ 10 years

= $10,500

You might be interested in
According to the quantity theory of money, a 5 percent increase in money growth increases inflation by ___ percent. According to
lina2011 [118]

Answer:

both blanks can be filled by <u>5%</u>

Explanation:

The quantity theory of money states that there is a proportional relationship between the money supply and the general level of prices. An increase in the money supply will increase the general level of prices in the same proportion (called inflation).

The Fisher equation measures the relationship between nominal and real interest rates. Real interest rate = nominal interest rate - inflation rate.

So if inflation increases, the nominal inflation rate will increase to keep the real interest rate the same.

8 0
3 years ago
If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
BartSMP [9]

Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit

Explanation:

If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.

If they did that, revenue would be $7,425

Expenses would be wages and fixed costs:

= Wages + fixed costs

= (45 workers * wage rate) + 1,500

= (45 * 105) + 1,500

= $6,225

Economic profit would be:

= 7,425 - 6,225

= $1,200

6 0
3 years ago
Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and the
-BARSIC- [3]

Answer:

$205,592

Explanation:

Interest cost is the Present Value of this $ 20,000 annuity streams at time zero i.e. ( Year 2022

Value of annuity stream = $ 20,000 x 11.11839

Present Value of annuity streams at 2015 =$ 222,367.80

Discount Factor for 2017 = (1.04)-2 = 0.92456

Present Value at 2022= $ 222,367.80 x 0.92456

Service Cost= $ 205,592

5 0
3 years ago
As it turns out, Brian and Sondra's good fortune with the restaurant has caused their competitors to lose business. In fact, Caj
iren2701 [21]

Answer: Brian and Sondra have, done nothing illegal

Explanation:

Brian and Sondra company are totally in their right, they are not directly involved in the poor fortunes of their competitors.

A rise in sales at Brian and Sondra company led to drop in the sales of their competitors leading to closure of their competitors businesses.

5 0
3 years ago
x-co issued 1,000 shares of its 5%, $10 par value, cumulative preferred stock for $100 cash per share. the journal entry to reco
gizmo_the_mogwai [7]

If the company issued 1,000 shares of its 5%, $10 par value, cumulative preferred stock for $100 cash per share. the journal entry to record this event includes: is: Debit  Cash $100,000 ; Credit to Preferred Stock $100,000.

<h3>How to prepare the journal entry?</h3>

Based on the given information we were told that the company issued  1,000 shares in which the cumulative preferred stock is the amount  $100 cash per share. The appropriate journal entry to record the transaction is:

Journal entry

Debit  Cash $100,000

Credit to Preferred Stock $100,000

( To record preferred stock)

Workings:

Preferred stock = 1,000 shares × $100 cash per shares

Preferred stock = $1000,000

Therefore the correct journal entry to record the transaction is to debit cash with the amount of $100,000 and credit Preferred stock with the amount of $100,000.

Learn more about journal entry here: brainly.com/question/14279491

#SPJ1

6 0
1 year ago
Other questions:
  • What are ethics? how would they apply to business and technology?
    11·1 answer
  • The company president does not believe that the formula should be altered for fear it will tarnish the company's brand
    12·1 answer
  • A student would like to buy a cross-over SUV from a local dealer, but she thinks the payments will be too high. Marketing does n
    10·1 answer
  • In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of
    5·1 answer
  • Evaluate the following investment options by comparing their risk and liquidity: buying a franchise real estate (buying property
    14·1 answer
  • The agreed cost of an item to be purchased by a business on credit is 4000. The applicable cost will be debited to advertising e
    9·1 answer
  • What is cold Storewhat is cold Store <br>​
    12·1 answer
  • Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. Th
    5·1 answer
  • Which person would benefit most from taking advantage of a low variable
    7·1 answer
  • The effect of a Pigovian tax on a market is: Group of answer choices increased price and quantity to the efficient level decreas
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!