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Step2247 [10]
2 years ago
8

Let’s return to Tenisa and Randolf Singh and their retail and decorating business, Comfy Home.Comfy Home is a retail business se

lling a broad range of homeware, kitchen, and electrical appliances to consumers and small businesses. In addition to the home and kitchen appliances, Comfy Home makes and sells home decorating items including artisanal candles and holiday arrangements. The company has two stores located in the small city of Warmtown, USA. Its downtown store offers decorating services to the banks and small businesses in the vicinity. Tenisa Singh handles the candle making and decorating side of the business while Randolf Singh managers the stores. The business is wholly owned by Tenisa and Randolf Singh and was started by the couple in 2014.
As part of Comfy Home’sprepaid assets, there is a yearly insurance premium of $12,000. The new year has begun and Comfy Home’s accountant is preparing journal entries for the month of January. She has learned from Randolf that the insurance premium for this year is the same as for last year and was paid in cash on January 2, 2018 for the new year. What are the journal entries that the accountant will make at the end of the month of January to reflect the activity(ies) related to Comfy Home’s insurance?
Business
1 answer:
quester [9]2 years ago
6 0

Answer:

Comfy Home

Journal Entries:

Date      Account Title             Debit    Credit

Jan. 31  Insurance Expense   $1,000

            Prepaid Insurance                  $1,000

To record the insurance expense for January.

Previously:

Jan. 2  Prepaid Insurance   $12,000

           Cash                                      $12,000

To record the prepayment for insurance premium.

Explanation:

Insurance Expense for each month is calculated as Prepaid Insurance/Period of prepayment.  This is equal to $12,000/12 = $1,000. This implies that every month's account will be debited with $1,000 for Insurance Expense, while the Prepaid Insurance (asset) is credited to account for the use of the asset for the period (month).  For January's balance sheet, the Prepaid Insurance balance will be $11,000 ($12,000 - $1,000).

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Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
tresset_1 [31]

Answer:

Contribution per unit of scare resource (in hour) = $24 per hour

Explanation:

The question falls under the limiting factor analysis

<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>

Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.

Contribution per unit of scare resource is determine as follows:

Contribution per unit of scare resource for Model K-3

Contribution per unit of Model K-3 = $6

Machine time per unit =  15 minutes

<em>Contribution per unit of scare resource in minutes</em>

=Contribution per unit/Machine time per unit

= 46/15 minutes

= $0.4 per minute

Contribution per unit of scare resource (in hour)

$0.4 per minutes× 60

= $24 per hour

7 0
3 years ago
According to Piaget, children in the preoperational stage are able to Group of answer choices reason abstractly and test hypothe
Olenka [21]

Answer:

represent objects with words and images

Explanation:

The preoperational stage occurs is the second stage of Piaget's theory of Cognitive Development. Here, the child becomes familiar with the use of symbols. This also helps in the development of the child's language skills.

The child starts to understand the concept of thinking. This is known as meta-cognition. The ability of the child to represent objects with words and images is integral in the learning and use of language.

Hence, the answer is represent objects with words and images.

5 0
3 years ago
Properly designing a protective packaging system requires three important kinds of information. Which of the following is not on
lutik1710 [3]

Answer:

value of the product to be protected

Explanation:

The value of the products that are being shipped or distributed should not be included in the protective package.

The severity of the distribution environment  refers to whether the products are hazardous or not, e.g. pesticides should be dealt very carefully because they are poisonous.

The fragility of the product to be protected  refers to the materials used to build the product, e.g. products made of glass are extremely fragile.

The performance characteristics of various cushion materials. refers to what type of cushioning was used to protect the product during shipment.

4 0
3 years ago
Which of the following statements best explains why the red bar goes up when the blue goes up?
vesna_86 [32]

<u>Answer: </u>Higher spending than taxing results in a deficit, which contributes to more debt.

<u>Explanation:</u>

Here the red bar is referred to the debt and the blue bar is referred to the spending. When the government spending is more it decreases the government revenue and creates a deficit in the funds. When there is deficit it means the government borrows funds for spending which increases the debts.

Government spending to improve the status of the economy in the country. It Invests is various activities for growth and development purpose. Only on collecting high taxes the revenue of the government will increase. When taxes collected are low the government revenue is also low.

8 0
3 years ago
Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 parvalue bonds have a quoted annual interest rat
gulaghasi [49]

Answer:

Price of the Bond is $868.82

Explanation:

Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]

Whereas

C = coupon payment = $110.00 (Par Value x Coupon Rate)

n = number of years = 7

r = market rate, or required yield = 14% = 0.14

P = value at maturity, or par value = $1,000

Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]

Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]

Price of the Bond = $481.0+$387.82

Price of the Bond = $868.82

8 0
3 years ago
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