Answer:
The balance of allowance for doubtful accounts is $ 1,880
Explanation:
Computation of balance in Allowance for Bad Debts
Total credit sales $ 47 comma 000
Estimated bad debts as a % of sales 4 %
Balance of Allowance for Doubtful accounts $ 1,880
The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.
Answer:
Total producer surplus= $30
Explanation:
Producer surplus is the difference between the price a seller is willing to sell and the market price or actual price at which the item is bought. The producer surplus is the additional benefit the seller gets from a sale.
Consumer surplus= Market price - Price seller is willing to sell for
Marco is willing to sell at $15 hour
Kelly is willing to pay $30 per hour
Mike is willing to pay $20 per hour
Surplus from Kelly= 30- 15= $15
Surplus from Mike= 20- 15= $5
Total producer surplus= ($15*1 hour) + ($5 *3 hours)
Total producer surplus= 15 + 15= $30
Answer:
A) The business must gain government permission and issue a stock sale, followed by a shareholder vote.
The answer to this question is <span>assets decrease; stockholders' equity decreases
The journal for this transaction would be
Debit: Rent expense xxxxx
Credit: Cash xxxx
Since cash is considered an asset, it will decrease asset if it placed on credit.
Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit </span>
Answer:
Deferred Tax Liability = $11,400 Credit
Explanation:
given data
pretax financial income = $228,000
Indigo’s tax depreciation = $38,000
tax rate = 30 %
solution
we know here that Income Tax Expense is
Income Tax Expense = $228,000 × 30%
Income Tax Expense = $68400 Dr
so as that
Deferred Tax Liability will be here
Deferred Tax Liability = $38000 × 30%
Deferred Tax Liability = $38000 × 0.30
Deferred Tax Liability = $11,400 Credit
