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Elena L [17]
3 years ago
6

Marlow Company purchased a point of sale system on January 1 for $5,800. This system has a useful life of 5 years and a salvage

value of $600. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?
Business
1 answer:
xz_007 [3.2K]3 years ago
7 0

Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

The depreciation rate under double declining is = 0.2 × 2 = 0.4

Depreciation expense for the first year = 0.4 × $5800 = $2320.

At the beginning of year two, net book value = $5800 - $2320 = $3480

Depreciation expense for year two = 0.4 × $3480 = $1392

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Cash receipts A firm has actual sales of $ 60 comma 000 in April and $ 64 comma 000 in May. It expects sales of $ 75 comma 000 i
nirvana33 [79]

Answer:

Month incurred   Amount     June     July      August

June                     75,000     37500   18,750  18,750

July                       95,000                   47,500  23,750

August                  95,000                                 47,500

                                              37,500   66,250  90,000

The expected cash receipts are:

June = $37,500

July = $66,250

August = $90,000

Explanation:

The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.

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3 years ago
On June 1, 2016, Enne Brahtz Corporation received $3,600 as advance payment for 12 months' advertising. The receipt was recorded
Simora [160]

Answer:

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

       To Advertising revenue $1,800

(Being the adjusting entry is recorded)

Explanation:

The adjusting entry is shown below;

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

       To Advertising revenue $1,800

(Being the adjusting entry is recorded)

Here we debited the unearned fees as it decreased the liability and credited the advertising revenue as it increased the revenue account

The six months could be computed from June 1 to December 31

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Janis starts a small quilting and embroidery business. She purchases a technologically advanced quilting machine and an embroide
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Answer:

B. Cash Flow problem

Explanation:

Cash flow problem occurs in a business when the business struggles to pay back debts. It happens when a business cannot longer cover its debt payments and operational expenses. It is very common in new and growing business, because during growth period in a business, expenses are larger than receivables.

Janis in this case is facing cash flow problems as she is not getting enough clients and receivables to pay back the expenses her equipment is bringing in. The major solution to cash flow problem for short term/temporary issues is Financing.

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Consider the economies of Macmillana and Bloedelo, which are identical except that the multiplier in Macmillana is smaller than
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Answer:

Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:

1) The keynesian multiplier is smaller.

The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.

2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.

Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.

Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.

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3 years ago
A forecast that helps direct police officers to areas where crimes are likely to occur based on past data is an example of _____
mihalych1998 [28]

Answer:

D. Predictive Analytics

Explanation:

Predictive analytics is a data mining technique that involves the use of old previous information in the prediction of future activities. It is the use of statistical data and algorithms in determining the likelihood that a future event will occur based on the historical facts found in the statistical data. It is used in identifying patterns and predicting future outcomes and trends based on those identified patterns. An example of this is a forecast that helps police in predicting areas most likely that crime will occur.

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3 years ago
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