Answer:
a. Debit to Notes Receivable
Explanation:
Journal entry for selling an asset in return for notes receivable is;
Notes Receivable A/c Dr.
To Asset A/C
In the given case, an aircraft is sold in exchange for a note receivable. The journal entry would be:
12% Notes Receivable A/C Dr. $380,000
To Aircraft $380,000
(Being notes receivable received in exchange for aircraft sold being recorded)
Notes Receivable is an asset for the receiver as it represents amount which is due to be received. Whenever an asset account is debited, it increases their balance.
Aircraft is an asset. When an asset is sold, it is credited. Here the asset being a movable asset.
Answer:
D. Either Meredith or JaZz will own a majority equity stake, but we do not know which one based on the announcement.
Explanation:
Given the information/announcement on strategic alliance, it difficult to point out which of the two company will have a majority equity stake. So either the art company or the paper company will own majority equity stake but we cannot point out which of the two companies based on the announcement that was made concerning the alliance.
Answer:
c. expenditures of all businesses in the economy.
Explanation:
GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP can be calculated in 3 ways:
1. Expenditure approach : consumption spending + Investment spending + Government Spending + Net Export
expenditures of all businesses in the economy is used in the calculation of GDP using the expenditure approach.
2. Income approach: it is the sum of all income from all production in the economy.
3. Value added approach: it is sum of the value of all final production.
I hope my answer helps you
Answer:
C) $6.40 per direct labor hour.
Explanation:
The overhead application rate is used to estimate the manufacturing overhead for a specific project or reporting period.
overhead application rate = direct labor cost per hour / (total direct labor costs / total overhead costs)
overhead application rate = $16 / ($475 / $190) = $16 / $2.50) = $6.40
Answer:
b) $600,000
Explanation:
The break-even sales can be regarded as sales value in which the result makes the firm to report zero profit.
Total fixed costs was given from the question as ( $180,000)
The Contribution margin ratio was give from the question as ( 30%)= 0.3
✓break even point can be calculated as ratio of Total fixed costs to Contribution margin ratio. This can be expressed as
break even point=[Total fixed costs ]/ [ Contribution margin ratio.]
Substitute,
break even point= [ $180,000]/ [0.3]
=$600,000
