Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
Answer:
$36,000
Explanation:
Net Cash = Net Income for 2016 - Accounts Receivable + Decrease in inventory + Depreciation expense - Gain on sale of equipment
=> Net Cash = $40,000 - $ 4,000 + $2,000 + $3,000 - $5,000
=> Net Cash = $36,000
Answer:
A)
Bank reconciliation:
Bank balance Augusts 31 $18,340
+ Deposits in transit $2,830
<u>- Outstanding checks $3,520</u>
Reconciled bank account $17,650
Cash balance reconciliation:
Cash balance August 31 $17,350
+ Error in recording check $360
<u>- Bank fees $60</u>
Reconciled cash account $17,650
B) Cash account balance $17,650
Answer:
Jan. 1
Dr Cash $210,000
Cr Bonds Payable $210,000
Dec. 31
Dr Loss on Bond Redemption $4,200
Bonds Payable $210,000
Cr Cash $214,200
Explanation:
Porter Incorporated Journal entries
Jan. 1
Dr Cash $210,000
Cr Bonds Payable $210,000
Dec. 31
Dr Loss on Bond Redemption $4,200
Bonds Payable $210,000
Cr Cash $214,200
(102%×$210,000=$214,200)
Answer: contingent
Explanation: It refers to the employment in which the job of an individual is not fixed with the company. In case of contingent employment, the employees are usually hired when there is a specific project to complete that needs extra work force.
Unlike seasonal employment the these employments are non recurring and there is no time fixed for employment that an individual could expect.
Thus, from the above we can conclude that the given case is an example of contingent employment.
