Why are american firms moving manufacturing jobs overseas?

a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adj

Pavel [41]

Answer:

a1. Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

a2. $24,000

b2. December 31

Dr Wages Expenses $440

Cr Wages payable $440

Explanation:

a1. Preparation of the adjusting entry for the first year using the straight-line depreciation method.

Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

($40,000/5 years)

a2. Computation of the book value at the end of the second year of the equipment's life.

First step is to calculate the First year Book value

First year Book value=$40,000/5 years

First year Book value=$8,000

Second step is to calculate the Second year Book value

Second year Book value=($40,000+$40,000)/5 years

Second year Book value=$80,000/5 years

Second year Book value=$16,000

Now let compute the book value at the end of the second year of the equipment's life.

Book value at the end of the second year=$8,000+$16,000

Book value at the end of the second year=$24,000

Therefore the Book value at the end of the second year will be $24,000

b1. Preparation of the adjusting entry on December 31

December 31

Dr Wages Expenses $440

Cr Wages payable $440

($2,200/5 years)

3 0

2 years ago

A deficit on the current account Multiple Choice means that a nation is making international transfers. has no relationship to t

Sliva [168]

Answer:

The correct option is C

Explanation:

The deficit or shortage on the current account of the country, is defined as the measurement or determination of the trade of the company where the goods and the service value, it imports exceeds or increase the value of the products it exports.

The current account of the country states the foreign transactions of the country within the time period.

So, when there is deficit or shortage on the current account, it means that usually, it will cause deficit in the finance as well as the capital account of the country.

4 0

3 years ago

The graph above shows how the price of video games varies with the demand quantity. Suppose that the price of video games is set

ira [324]

Price floor.
A floor, in real life, is at the bottom, below you — this then makes sense in business to say that a ‘floor’ represents the minimum value of something — in this case the price of video games.
In real life, a ceiling is above you, indicating that it could be used as a representative of a maximum value of something, like the price of a video game.

So, if we were to say that $120 was the ‘price ceiling’ for video games, then we would basically be saying that $120 is the most a video game could cost. If we were to say that $100 was the ‘price floor’ for video games, we would be saying that $100 is the minimum value that the price of a video game could assume.

6 0

2 years ago

On January 2, 2019, Kaiman Corporation acquired equipment for $700,000. The estimated life of the equipment is 5 years or 80,

disa [49]

Answer:

$272,000

Explanation:

Accumulated depreciation is the sum of depreciation expense.

Depreciation is a method of expensing the cost of an asset.

Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life

($700,000 - $20,000) / 5 = $136,000

The straight line depreciation method Deprecation allocates the same deprecation expense each year of the useful life of an asset.

The depreciation expense in 2019 and 2020 would be $136,000 x 2 = $272,000

I hope my answer helps you

8 0

2 years ago

Explain the nature of promotional plan

kirill [66]

Answer:

A promotional plan of a company refers to the promotional mix. This mix contains decisions regarding the company which would put them on the path of growth and lead them towards success.

This consists of decisions regarding the manufacturing procedures, marketing decisions, market niche decisions, customer care services if required, promotional decisions, planing and strategic organizational decisions and etc.

8 0

2 years ago