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Sati [7]
3 years ago
6

last year, jarod left a job that pays $80,000 to run his own bike repair shop. jarod’s shop charges $65 for a repair, and last y

ear the shop performed 4,000 repairs. jarod’s production costs for the year included rent, wages, and equipment. jarod spent $60,000 on rent and $120,000 on wages for his employees. jarod keeps whatever profit the shop earns but does not pay himself an official wage. jarod used $25,000 of his savings to buy a machine for the business. his savings were earning an annual interest rate of 6 percent.
Business
1 answer:
irinina [24]3 years ago
6 0

The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.

It should be noted they the formula for calculating accounting profit will be:

= Total revenue - Explicit cost

Total revenue will be:

= $65 × 4000

= $260,000

Explicit cost is the direct cost that a business spends. This will be:

= $60000 + $120000 + $25000

= $205,000

Therefore, the accounting profit will be:

= $260000 - $205000

= $55,000

The accounting profit is $55000.

Read related link on:

brainly.com/question/25373796

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Cala Manufacturing purchases land for $489,000 as part of its plans to build a new plant. The company pays $35,300 to tear down
Firdavs [7]

Answer:

Cala Manufacturing

Journal Entry

Debit Land $489,000

Debit Land $35,300

Debit Land $52,183

Debit Building $1,667,600

Debit Parking Lot $105,264

Credit Cash $2,349,347

To record the purchase of land, its preparation, construction of a new Building and a Parking Lot for cash.

Explanation:

a) Data and Analysis:

Land $489,000

Land $35,300 (Land preparation)

Land $52,183 (Land preparation)

Building $1,667,600 (construction)

Parking Lot $105,264

Cash $2,349,347

6 0
3 years ago
C Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, C determined that insurance prem
Jet001 [13]

Answer:

C Co.

Adjusted beginning retained earnings in 2021 Statement of Retained Earnings:

$215,000

Explanation:

Reported Retained Earnings balance at December 31, 2020 = $200,000

Prepaid insurance = $30,000 for three years

Insurance Expense for 2020 = $30,000

Insurance Expense for each of the three years = $10,000 ($30,000/3)

Insurance Expense over-expensed by $20,000 ($30,000 - $10,000)

Deferred Tax Liability = $5,000 ($20,000 * 25%)

Therefore, adjusted Retained Earnings = $215,000 ($200,000 + 20,000 - 5,000)

b) The Retained Earnings should have been $220,000 instead of $200,000 and there must be accounted for the deferred tax liability arising from the deduction of the Insurance expense that should have been accounted for in subsequent years.

3 0
3 years ago
After watching both videos above, explain the importance of understanding intercultural communication. Identify the role that co
Triss [41]

Answer:

Intercultural communication is important as it helps in cross culture communication process. It helps in the process where different people belonging to different cultures communicate together on one platform. The communication can be verbal or non verbal among the people who belong to different cultural backgrounds.

Explanation:

High context communication is one in which communication is in such a way that relies heavily on non verbal language and emphasis the cultural values. Low context cultures communication is when people communicate in direct and precise manner. They rely heavily on verbal communication.

7 0
3 years ago
The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in
Elina [12.6K]

Answer:

Falls by $100,000

Explanation:

In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.

Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000

We now calculate the price or worth of the land when demand falls

This is mathematically equal to 400 * 1000 = $400,000

Now, the net economic rent fall would be $500,00 - $400,000 = $100,000

Hence, there would be a fall of $100,000 as the demand for land falls

5 0
3 years ago
Will Mark as Brainliest!!! +40 extra points Spending money on medical expenses is part of this expenditures approach for calcula
mr_godi [17]

Answer A

Explanation:

8 0
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