Answer:
a) Bonds Payable.
Explanation:
Since there is an issue of bonds as against cash, which need to be paid back in future, amount received will be credited to bonds payable.
Further the purpose of bonds will always be to acquire a capital asset as bonds are issued for long term finance generally, therefore, the bonds will be credited as bonds payable, rather than capital contributions.
Though a general note in notes to account can be added clearly specifying the purpose of issue of bonds.
a) Bonds Payable.
Answer:
C(100) = (75 x 100) + (200 x 100) = $27,500
Explanation:
the initial cost function of producing bikes is:
C(x) = 75F + 100W
the initial cost to produce 1 bike = $75 + $100 = $175
if the cost of wheels increase to $100 each, then the cost function is:
C(x) = 75F + 200W
in this case, there is not much to calculate since every bicycle must have 1 frame and 2 wheels, that means that in order to produce 100 bicycles you will necessarily need 100 frames and 200 wheels. Labor is not considered in this cost function, so any cost minimization strategy is limited to using the minimum amount of parts:
C(100) = (75 x 100) + (200 x 100) = $27,500
The normal rate of return on equity capital is also known as the opportunity cost of capital
<span> Revenue </span>accounts or <span>Expense </span><span>accounts</span>
