Answer: $789855
Explanation:
Initial liability = $1,006,192
Less: Payment = $159,000
Liability = $847192
× Implicit rate 12%
Interest = 12% × $847192 = $101663
Then, reduced balance will be:
= Payment - Interest
= $159,000 - $101663
= $57337
Therefore, Francisco lease liability at December 31, 2022 will be:
= $847192 - $57337
= $789855
Answer:
Online actions are not always, but many times a fraud. The Federal trade commission (FTC) warns about them in their website because a lot of people fall for them every year. If the seller doesn't accept a credit card, you can try another online payment method like PayPal, but never send cash or any check.
<u>Solution and Explanation:</u>
<u>The following journal entries are passed in the books of accounts.</u>
Purchase of merchandise on credit - no entry is to be passed
Contribution of automobile to the company:
Date Details debit credit
12- nov Automobiles 17000
TB Capital 17000
( To record contribution of automobile to the company)
Sale of merchandise on credit:
Not recorded in gernal journal
Return of merchandise sold:
Date Details debit credit
19- Nov Sales return and allowances 175
accounts receivable - KM 175
Answer:
Part a
Contribution Margin = 29.95% (2 d.p)
Part b
Billing Company
CVP Income for as at September 2017
Total Per Unit
$ $
Sales 295704 444
Less Variable Costs (138084) (311)
Contribution 157620 133
Fixed Costs (59850) 89.86
Net Income 97770 43.14
Part c
Billing`s break even point is 450 units
Part d
Billing Company
CVP Income for as at September 2017 - Break Even Point
Total Per Unit
$ $
Sales 199800 444
Less Variable Costs (139950) (311)
Contribution 59850 133
Fixed Costs (59850) 133
Net Income 0 0
Explanation:
Part a
Contribution Margin = Contribution/Sales × 100
Therefore contribution margin is ($444-$311)/$444 * 100 = 29.95% (2 d.p)
Part b
Sales - Variable Cost = Contribution
Net Income = Contribution - Total Fixed Costs
Part c
Break Even Point is when Billings neither makers a profit or loss.
Break Even Point ( Units) = Total Fixed Cost/Contribution per unit
Therefore Break Even Point (Units) = $59850/$133 = 450 units
Part d
The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill
