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Delvig [45]
3 years ago
7

In its first year of operations, Jetway Airlines incurred and paid Salaries Expense of $40 million. On December 31, it accrued a

n additional Salaries Expense of $2 million. What should Jetway report in the income statement and balance sheet for its first year ended December 31?
Business
2 answers:
allochka39001 [22]3 years ago
8 0

Answer:

<em>Income statement :</em>

Salaries Expense (40+2)                                $42 million

<em>Balance sheets:</em>

Accrued Salaries                                           $2  million

Explanation:

According to the matching concept revenue earned for a particular accounting period should be reported (in the income statement) alongside all the expenses incurred to generate them.

Sometimes, some expenses for which value and benefit had been received would remain unpaid. So the accrual concepts states that such expenses should be recognised as liabilities in the balance sheet.

Apply these two concepts to Jetway Airlines

On December 31st,

<em>Income statement </em>

Salaries Expense (40+2)                                $42 million

<em>Balance sheets</em>

Accrued Salaries                                           $2  million

exis [7]3 years ago
4 0

Answer:

In the income statement is must report a salaries expense of $42 million.

In the balance sheet is must report a liability - salaries payable of $42 million.

Explanation:

The company actually incurred in $42 million in salaries expenses, so they should be included in the balance sheet. Since the company only paid $40 million in salaries, it still owes $2 million. So it must report that amount as a current liability.

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Each of the following factors affects the weighted average cost of capital (WACC) equation. Which of the following factors are o
Volgvan

Answer: The correct answers are "The general level of stock prices" and "The effect of the tax rate on the cost of debt in the weighted average cost of capital equation".

Explanation: The general level of stock prices and the effect of the tax rate on the cost of debt in the weighted average cost of capital equation are outside from firm's control because although companies have knowledge of the market, the general level of stock prices is not controlled by them, but by the market. And the effect of the tax rate is not controlled by companies because the tax rate is set by the state.

7 0
3 years ago
The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parti
zmey [24]

Answer:

a per se violation of antitrust law.

Explanation:

The antitrust laws can be defined as those laws that are created by the US government to protect consumers from unfair means of competition in market. The aim of creating such laws is to ensure the protection of customers from corruptive business practices and also to ensure safe healthy competitive environment among same business companies.

<u>In the given scenario, the Association of Organic Food Growers is violating the antitrust law by boycotting farmers, ranchers, etc. The antitrust laws are violated by companies in several ways among them is by boycotting</u>.

Boycotting can be defined as an agreement between several companies that excludes a group of customers or market to avert them from buying aanyy goods or products.

This boycotting agreement is a per se violation of antitrust law.

5 0
3 years ago
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 2,500 units at $5 Feb. 17 Purchase 3,3
Alenkasestr [34]

Answer:

ending inventory using FIFO = $11,700

ending inventory using LIFO = $7,500

ending inventory using average method = $9,435

Explanation:

date         item                               units             price             total

Jan. 1        beginning inv.             2,500             $5             $12,500    

Feb. 17     purchase                      3,300             $6             $19,800

July 21      purchase                     3,000             $7             $21,000

Nov. 23    purchase                      1,200             $8              $9,600

total                                              10,000                             $62,900

Dec. 31     ending inv.                   1,500                              

ending inventory using FIFO = (1,200 x $8) + (300 x $7) = $11,700

ending inventory using LIFO = 1,500 x $5 = $7,500

ending inventory using average cost = 1,500 x $6.29 = $9,435

5 0
3 years ago
Suppose that you are participating in a game show. so far, you have won $10,000 free of tax and can leave with your winnings.how
olga nikolaevna [1]

Answer

I would stop playing and leave with the $10000 free of tax

Explanation

The truth in such games is that they are not designed to be exactly 50/50. There are possibilities for outcomes that will tie or loose. Furthermore, a game that is really 50/50, the house will deduct some commission. These games always have a room for the house advantage, thus for me, I will just go with $10000 fortune!


3 0
3 years ago
Read 2 more answers
What is the main aims of forming a maize milling company ​
belka [17]

Answer:

to provide I

or produce mealie meal for the country and improve the country's production in food and farming.

3 0
2 years ago
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