Explanation:
The adjusting journal entry to record the given adjustment is shown below:
At the year-end
Insurance expense A/c Dr. A/c $800
To Prepaid Insurance A/c $800
(Being insurance expense is recorded)
The computation is given below:
= Prepayment done for 6 months insurance policy - expired insurance
= $1,200 - $400
= $800
Answer:
Shoe leather costs
Explanation:
(A) Shoe leather costs
(B) Inflation can be defined as the persistent rise in the prices of goods and services. Shoe leather costs can be defined as the costs of time and effort that are encountered by individuals while trying to prevent the effect of inflation. It describes the costs incurred by individuals that visits the bank often inorder to withdraw money needed to purchase goods and services during the time of inflation.
Shoe leather cost arises during the period of high inflation, individuals do not hold large amount of cash because there will be a reduction in the value of the money.
Answer:
C. Each state or country can adopt large-scale production techniques that allow lower per-unit costs of production.
Explanation:
Typically explained, Economies of scale (EOS) are the advantages or benefits a firm achieves due to increase in production or operation which in turn leads to decrease in per unit costs.
Here in this question, it is evident that the only way economies of scale could be achieved is by increasing the large scale production techniques that leads to lower per-unit costs of production for the firms.
Hope this clear things up.
Thank you.
Answer:
Explanation:
The journal entry to record the establishment of the fund on September 1 is:
Debit: Petty Cash. $460
Credit: Bank. $460
Being cash drawn for petty cash.
Other journal entry for the disbursement of the petty cash fund are:
1. Debit: Office Supplies. $94
Credit: Petty cash. $94
Being cash paid for office supplies
2. Debit:Merchandise inv. $170
Credit: Petty Cash. $170
Being cash paid for merchandise inventory
3. Debit: Miscellaneous exp. $43
Credit : Petty cash. $43
Being cash paid for miscellaneous expenses.
