Answer:
A sole proprietorship is a person who owns the business and is personally responsible for its debts. It is not a legal entity.
A partnership partnership shares the responsibilities, resources, and losses
Explanation:
Answer:
Part a
2021 = $7,000
2022 = $6,000
Part b
2021 = $5,250
Explanation:
Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.
Step 1
<em>Some of digits calculation :</em>
Year Digits
2021 7
2022 6
2023 5
2024 4
2025 3
2026 2
2027 1
Total 28
Step 2
<em>Determine the depreciable amount</em>
Depreciable amount = Cost - Residual value
= $40,000 - $12,000
= $28,000
Step 3
<em>Depreciation expense calculations</em>
2021 = 7 / 28 x $28,000 = $7,000
2022 = 6/ 28 x $28,000 = $6,000
assuming the equipment was purchased on March 31, 2021
2021 = $7,000 x 9/12 = $5,250
Answer:
A. Personal help and interaction wider.
Explanation:
Due to the physical contact and getting to physically recognise each other, the familiarity increase the level of personal relationship.
Answer:
E. Over applied overhead
Explanation:
Over applied overhead is defined as excess amount of overhead applied during a production period over the actual overhead incurred during that period. In other words, it means excess overhead applied to work over the amount of overhead actually incurred.
When this occurs, it is called favourable variance and it is added to the budgeted profit in the end of the accounting period in a financial statement.
Answer and Explanation:
The journal entry to record the factory labor cost is shown below:
Work in progress ($2,060 + $1,710 + $3,130 + $3,520 + $2,150 + $1,410 + $9,540) $23,520
Factory Overhead $10,980
To wages payable $34,500
(to record the factory labor cost)
Here work in process and factory overhead is debited as it increased the assets and expenses and credited the wages payable as it also increased the liabilities
