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3 years ago

Money Withdrawn from bank for office use ,which account are affected In a three column cash book

1 answer:

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Withdrew Cash from Bank for Office Use: It is also contra entry and recorded on both sides of cash book. It reduces the bank account and increases the cash on hand. It is recorded on payment side (bank column) and receipt side (cash column) of cash book

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A profit-maximizing firm will not employ an additional unit of a resource if the marginal product of that unit is greater than t

Lubov Fominskaja [6]

Answer:

The Answer is A) True

Explanation:

The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits. A rational company always seeks to optimize its profit, and the relationship between marginal revenue and the marginal cost of production helps to find the point at which this occurs. The point at which marginal revenue equals marginal cost maximizes a company's profit.

Cheers!

4 0

3 years ago

An analyst gathered the following information about a company: 01/01/04 - 50,000 shares issued and outstanding at the beginning

Ray Of Light [21]

Answer:

Company A

The company's weighted average number of shares outstanding at the end of 2004 is:

= 53,188 shares.

Explanation:

a) Data and Calculations:

Date Description Weight Weighted Average

01/01/04 - 50,000 shares issued

and outstanding 12/12 = 50,000

04/01/04 - 5% stock dividend (2,500) 9/12 = 1,875

10/01/04 - 10% stock dividend (5,250) 3/12 = 1,313

Total weighted average number of shares = 53,188

4 0

3 years ago

March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays

Tasya [4]

Answer:

The following journal entries would be recorded in Dexter's books:

March 11: When Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co.

Debit Bad debt expense $45,000

Credit Accounts receivable $45,000

March 29: When Leer Co. unexpectedly pays its account in full to Dexter Company:

Debit Accounts receivable $45,000

Credit Bad debt expense $45,000

<em>To recognize the cash payment:</em>

Debit Cash xxxx

Credit Accounts receivable xxxx

Explanation: The above journals were premised on the assumption that Dexter Company applies the direct write-off method in accounting for uncollectible accounts.

A reversal of the journal entries was recorded on March 29 because the two events occurred in the same month, before Dexter Company closes its account for the month of March. The purpose of the reversal was to reinstate the accounts receivable to 100 per cent. But if the write-off entries were recorded long ago (past year), and Leer Co. did a part settlement of the amount that was deemed collectible and suddenly paid the amount that was already written off, then the entries to be recorded would be Debit Cash, Credit Other income / recovery account.

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4 years ago

On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the

Andru [333]

Answer:

$987

Explanation:

Calculation to determine the amount to be added to the right-of-use asset and lease liability under the residual value guarantee

First step is to determine the Present value of $1: n= 4, i = 5%

Present value of $1: n= 4, i = 5%

Present value of $1=.8227

Now let calculate the amount to be added to the right-of-use asset and lease liability under the residual value guarantee

Using this formula

Amount added to right-of-use asset and lease liability=(Guaranteed -Actual)*Present value

Let plug in the formula

Amount added to right-of-use asset and lease liability=($39,800-$38,600)*.8227

Amount added to right-of-use asset and lease liability= $1,200*.8227

Amount added to right-of-use asset and lease liability=$987

Therefore the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $987

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3 years ago

A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. Required: a. What is the b

ruslelena [56]

Answer:

a. $750,000

b. $75,000

c. $33,000

Explanation:

We know that,

a. Margin of safety = Expected sales - break even sales

$1,000,000 × 25% = $1,000,000 - break even sales

$250,000 = $1,000,000 - break even sales

So, the break even sales = $750,000

b. Operating income = Contribution margin - fixed cost

where,

Contribution margin = $1,000,000 × 30% = $300,000

And, the fixed cost = $750,000 - $750,000 × 70%

= $750,000 - $525,000

= $225,000

Or we can do one thing also

Break even point = Fixed cost ÷ contribution margin ratio

$750,000 = Fixed cost ÷ 30%

So, the fixed cost is $225,000

Now put these values to the above formula

So, the value would equal to

= $300,000 - $225,000

= $75,000

c. Additional operating income would be

= $110,000 × 30%

= $33,000

8 0

3 years ago