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3 years ago

Metro Company trades its used machine for a new model at Denver Solutions Inc.

Business

1 answer:

zalisa [80]3 years ago

4 0

Answer:

Cost of new machine:

= List price of new machine - Trade allowance + Fair value of old machine

= $16,000 - $9,000 + $6,000

= $13,000

Therefore, the journal entry is as follows:

Cost of new machine A/c Dr. $13,000

Accumulated depreciation (Book Value) A/c Dr. $4,000

Loss on exchange of machine A/c Dr. $2,000

To Old Machine (Book Value) $12,000

To Cash (16,000 - 9,000) $7,000

(To record the machine exchange)

You might be interested in

How data of new hired empployees are saved?

zaharov [31]

Answer:

The HRM saves the data

Explanation:

The Human resource management (HRM) department handles recruitment for most companies that have such a department. Therefore whenever a company recruits employees the employee data such as;

Address,
Family details,
Medical records,
Age etc,

is sent to the HRM and is usually kept within the organization for internal usuage only in a database or company's internal website.

7 0

3 years ago

3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the

melisa1 [442]

Answer:

The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.

Explanation:

The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.

In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.

8 0

2 years ago

On April 30, 2015, Zono Electronics, Inc. made a payment of $3,500 to Imperial Distributors, a supplier. Choose the statement th

pav-90 [236]

Answer:

A) Debit cash, credit accounts receivable

Explanation:

As the statement said, Zoono electronics made a payment which means they are debiting cash amount of $3,500 to imperial distributor who is a supplier. So the best statement that best describes the recording of this financial transaction by imperial distributor is their account receivable has been credited and cash is debited. All the other options are wrong except this.

3 0

3 years ago

The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to th

MAXImum [283]

Answer:

$14,506

Explanation:

Calculation to determine what the total materials handling cost allocated to the wall mirrors is closest to:

First step is to calculate Material handling cost per labor hour

Material handling cost per labor hour = $16,754.50 / [(12,900 * 9) + (1,500 * 12)]

Material handling cost per labor hour =$16,754.50/(116,100+18,000)

Material handling cost per labor hour = $16,754.50/134,100

Material handling cost per labor hour =0.124940

Now let calculate the Materials handling cost allocated to wall mirrors

Materials handling cost allocated to wall mirrors = 12,900 *9*0.124940

Materials handling cost allocated to wall mirrors = $14,506

Therefore the total materials handling cost allocated to the wall mirrors is closest to:$14,506

8 0

3 years ago

Performance is evaluated for an investment center through the comparison of actual and budgeted return on investment (ROI) based

igor_vitrenko [27]

Answer:

True

Explanation:

Return on Investment (ROI) is the proportion of operating assets that an investment center earned as as net operating income.

ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return.

It is calculated as follows

ROI = operating income/operating assets × 100

To evaluate a division, the division's ROI is compared to the budgeted ROI of the company. An actual ROI that exceeds the budgeted is considered a good performance and vice versa

3 0

3 years ago