Answer:
I agree with him since liability insurance covers the policy holder against legal claims (law suits) due to personal injuries or damages caused to other people or their properties.
Generally people or businesses exposed to higher risks are covered by policies with high amounts, e.g. a manufacturer of any type of product (or really any type of business, even services), a doctor or more commonly anyone who has a car.
Since this is a homeowners policy, then a low limit should be sufficient. Just think a¿bout it, how can your house damage someone else? Maybe a neighbor or someone else visiting you slips and suffers an injury, but the possibility of the harm being serious is very low. If this included a car insurance policy, then you could request a higher amount, but not for a house.
Answer:
Sara Co total expenses in a single-step income statement is $231000 as found in the attached
Explanation:
Single-step income statement gives the net profit of a business by deducting total expenses from total revenue.
It differs from two-step income statement where revenue expenses are categorized into, namely direct and indirect,which enables the gross profit and net profit to be calculated differently.
Since total revenue for Sara Co from all sources is $256,000,the resultant net profit for the year is $25000($256000-$231000).
Answer:
c.Rents occur at the beginning of each period of an annuity due.
Explanation:
First, know the difference between Ordinary annuity and Annuity due.
In Ordinary annuity, recurring payments occur at the end of the payment period; for example at the end of every month, end of ever year , end of every quarter etc.
On the other hand, in the case of Annuity due, the recurring payments occur at the beginning of the period like at the beginning of the month, beginning of the year;Jan 1st, or beginning of every quarter
In the case of rent, tenants pay rent at the beginning of each month making this type of payment an Annuity Due.
Answer:
<u>journal entries to record revenues and gains:</u>
Dr Cash 193,000
Cr Sales revenue 193,000
Dr Cash 35,000
Cr Asset 30,000
Cr Gain on sale of asset 5,000
<u>journal entry to record COGS:</u>
Dr Cost of goods sold 108,900
Cr Merchandise inventory 108,900
<u>journal entries to record expenses:</u>
Dr Depreciation expense 7,500
Dr Vehicle expense 2,800
Dr Interest expense 15,600
Dr Pension expense 7,500
Cr Cash 50,600
Dr Other operating expenses 18,400
Cr Cash 18,400
<u>journal entries to record dividends (declaration and payment):</u>
Dr Retained earnings 13,800
Cr Dividends payable 13,800
Dr Dividends payable 13,800
Cr Cash 13,800
