15. You have been working for five years after college and are ready to buy your first home. Homes in the area you want to live

Here are some strategies that Apple should implement to guarantee widespread use of Apple Pay -

i) Encourage more merchants to accept it by educating them and providing devices at low costs

ii) Expand support across various platforms so that users of different devices can access Apple Pay services

iii) Boost visibility by collaborating with additional e-commerce platforms and applications

Question Completion:

Financial data:

Unearned revenue 3,600

Notes payable 2,800

Accounts payable 4,800

Advertising expense 2,800

Rent expense 4,000

Salaries expense 6,000

Utility expense 2,400

Consulting revenue 34,000

Rental revenue 7,000

Accounts receivable 10,000

Cash 12,000

Equipment 10,200

Notes receivable 5,000

Prepaid insurance 2,000

Supplies 3,000

Common Stock 9,200

Dividends 4,000

Prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet as of December 31.

Answer:

Accel Consulting Firm (managed by Maria Gomez)

a. Income Statement for the month ending December 31:

Consulting revenue            $34,000

Rental revenue                        7,000

Total Revenue                     $41,000

Subtract expenses:

Advertising expense 2,800

Rent expense            4,000

Salaries expense      6,000

Utility expense          2,400   15,200

Net Income                        $25,800

b. Statement of Retained Earnings for December 31:

Net Income                             $25,800

Dividends                                    4,000

Retained earnings, Dec. 31    $21,800

c. Balance Sheet as of December 31:

Assets:

Cash                                  $12,000

Accounts receivable           10,000

Notes receivable                  5,000

Prepaid insurance                2,000

Supplies                                3,000

Equipment                           10,200

Total Assets                     $42,200

Liabilities:

Unearned revenue           $3,600

Notes payable                     2,800

Accounts payable               4,800

Total Liabilities                 $11,200

Common Stock                  9,200

Retained earnings            21,800

Total liabilities + Equity $42,200

Explanation:

The income statement of Accel provides a brief overview of temporary accounts that are not transferred to the next accounting period. These accounts are utilized to measure the financial performance of the consulting firm, including revenues and the associated expenses.

The retained earnings statement of Accel illustrates the difference between the accumulated net income over the years for a longstanding business and the distributed dividends from this income to shareholders. For Maria Gomez's consulting enterprise, this statement indicates the remaining funds after dividend payments for December.

Finally, Accel's balance sheet is necessary to present the firm's financial standing. It displays what the company possesses as assets, what it owes in liabilities for unpaid services, and the equity held by the owner, Maria.

The salvage value applied in this case is B. $20,000. For year 3, the depreciation amounts to $80,000 calculated using the sum of the Years' Digits method on an asset with a purchase price of $500,000 and a useful life of 8 years. The salvage value taken into account for the depreciation calculations stands at $20,000.

Answer:

Journal Entry for the partial year's depreciation on July 1, 2023:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

1) When the machine is sold for $45,500 in cash:

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) When the machine is sold for $25,000 in cash

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000

Explanation:

Rayya Co. utilizes the straight-line depreciation approach, calculating the yearly Depreciation Expense using the formula:

Annual Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life = ($105,000 - $0)/7 = $15,000

The machine was used for 6 months in 2023 (half a year)

Depreciation Expense = $15,000/2 = $7,500

The journal entry for partial year's depreciation on July 1, 2023 is recorded as follows:

Debit Depreciation Expense $7,500

Credit Accumulated Depreciation $7,500

By July 1, 2023, the total Accumulated Depreciation amounts to = $15,000 x 4 + $7,500 = $67,500

Carrying value of the machine = $105,000 - $67,500 = $37,500

(1) If the machine is sold for $45,500 cash:

Calculation of Sale Price minus Carrying Value = $45,500 - $37,500 = $8,000>0

=> Therefore, the company acknowledges a gain of $8,000 on the sale

Debit Cash $45,500

Debit Accumulated Depreciation $67,500

Credit Gain from Sale of Asset $8,000

Credit Machine Asset $105,000

(2) If the machine is sold for $25,000 cash

Calculation of Sale Price minus Carrying Value = $25,000 - $37,500 = -$12,500<0

=> Thus, the company records a loss of $12,500 on the sale

The entry needed is as follows:  

Debit Cash $25,000

Debit Accumulated Depreciation $67,500

Debit Loss from Sale of Asset $12,500

Credit Machine Asset $105,000

NEPAL TOURISM AND OCCUPATIONS RELATED TO IT

Explanation:

Occupations associated with the tourism industry comprise

• Travel agents
• Guides for nature parks
• Organizers of meetings
• Map makers
• Professionals in tourism
• Wine stewards
• Tour operators, among others.

IMPORTANCE OF TOURISM WITH REFERENCE TO NEPAL

• A primary significance is the foreign currency exchange as it holds a much higher value than other tourism destinations.
• Exports to various countries from Nepal are inexpensive, and many goods are produced in bulk.
• It provides opportunities for mountaineering and various adventure activities.
• The affordable living standards draw numerous travelers from around the globe.