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Andre45 [30]
3 years ago
8

If you buy a ticket to an outdoor concert but come down with a bad cold on the night of the show, the principle of ____ suggests

you should not consider the money you already spent on the ticket when deciding whether or not to go.
Business
1 answer:
Marina86 [1]3 years ago
5 0

Answer:

sunk cost

Explanation:

Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.

The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to

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As the average hourly wage increases from $18 per hour to $20 per hour, the quantity of frozen dinners demanded decreases from 3
horrorfan [7]

Answer:

The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%

Explanation:

When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.

income elasticity % = % change in quantity / % change in income

(((3350-3550)/3550)/((20-18)/18))*100

7 0
3 years ago
All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's an
lianna [129]

Answer:

1) adjusting entries

a. On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.

Dr Unearned rental revenue 5,500

    Cr Rental revenue 5,500

b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.

Dr Interest expense 396

    Cr Interest payable 396

c. Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.

Dr Depreciation expense 3,000

    Cr Accumulated depreciation 3,000

d. Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.

Dr Unearned service revenue 600

    Cr Service revenue 600

e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.

Dr Insurance expense 1,660

    Cr Prepaid insurance 1,660

f. The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.

Dr Accounts receivable 4,200

    Cr Service revenue 4,200

g. At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.

Dr Wages expense 13,700

    Cr Wages payable 13,700

h. On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

Dr Property taxes expense 490

    Cr Property taxes payable 490

2) Assets     = Liabilities + Stockholders’     Revenues - Expenses = Net

                                          Equity                                                          Income

a.    na               -                    +                           +               na                +

b.    na               -                    -                           na              -                   -

c.     -               na                   -                           na              -                   -

d.    na               -                    +                           +               na                +

e.     -               na                   -                           na              -                   -

f.      +              na                   +                           +               na                +

g.    na              +                    -                            na             -                   -

h.    na              +                    -                            na             -                   -

4 0
3 years ago
On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percen
Hoochie [10]

Answer:

Period    Bonds        Interest    Cash        Increase in        Bonds payable

             Payable     Expenses   Paid       Bonds payable     at the end

2018     583352      23334.08   18000         5334.08          588686.1

2019     588686.1    23547.44   18000         5547.44          594233.5    

2020    594233.5   23766.48   18000         5766.48          600000

Journal entries

<u>Jan 01 2018</u>

Cash account Dr $583352

Discount on Bonds Payable Dr $16648

Bonds payable Cr $600000

<u>Dec 31 2018</u>

Interest expense Dr $23334.08

Cash account Cr $18000

Discount on bonds Payable Cr $5334.08

<u>Dec 31 2019</u>

Interest expense Dr $23547.44

Cash account Cr $18000

Discount on bonds Payable Cr $5547.44

<u>Dec 31 2020</u>

Interest expense Dr 23766.48

Cash account Cr $18000

Discount on bonds Payable Cr $5766.48

<u>Dec 31 2020</u>

Bonds Payable Dr $600000

Cash account Cr $600000

<u>01.01.2020</u> (Redemption at 101)

Bonds Payable Dr $600000

Loss on redemption of bonds Dr $11766.48

Cash account (600000*101%) Cr $606000

Discount on bonds payable Cr $5766.48

8 0
3 years ago
Shen lives in Dallas and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of thi
Elis [28]

Solution :

1.

The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.

The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.

The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.

The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.

2. Paolo's accounting profit can be calculated by :

  Accounting profit = revenue - explicit cost

                                 = 851,000 - 476,000 - 281,000

                                = $ 94,000

3. Paolo's economic profit is :

   Economic profit = accounting profit - implicit profit

                             = 94,000 - 34,000 - 71,000

                              = -11,000

6 0
3 years ago
Kinney, Inc., an electing S corporation, holds $5,000 of AEP and $9,000 in AAA at the beginning of the calendar tax year. Kinney
Murrr4er [49]

Answer:

(C) $1,500 dividend income.

Explanation:

The total AAA available is $15000($10000+$5000(taxable income)).

The total distribution $18000(($6000×2)+($3000×2))

Here since available AAA is $15000 each get deduction of $7500($15000×500shares/1000shares).Hence $1500(i.e $6000+$3000-$7500) is taxable.

7 0
3 years ago
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