<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Numerous things are excluded. For example, free of charge services are not counted such as those when family members help each other. In addition, producing things for yourself or others free of charge is also excluded. These are called non-market transactions.
Answer:
$1,076,000
Explanation:
The computation of the carrying value of the bonds is shown below:
= Face value of the bond + unamortized bond premium
= $1,060,000 + $16,000
= $1,076,000
We simply added the face value of the bond and the unamortized bond premium so that the carrying value of the bond could come
All other information which is given is not relevant. hence, ignored it
Answer:
Retained Earning (Dr.) $295,000
Stock Dividend Payable (Cr.) $295,000
To record stock dividend
Retained Earnings (Dr.) $157,800
Cash (Dr.) $157,800
To record cash dividend
Explanation:
Statement of Shareholder's Equity
Retained Earnings Beginning Jan 21 $1,275,000
Net Income $2,250,000
Cash Dividend $157,800
Stock Dividend $295,000
Retained Earning Ending $3,072,200
