. You want to start a business that you believe can produce cash flows of $5,600, $48,200, and $125,000 at the end of each of th

Answer:

Debit Merchandise Inventory $250

Credit Accounts Payable $250

Explanation:

On the purchase date, the correct action is to recognize the $250 owed to the supplier for the German chocolate by crediting accounts payable and debiting merchandise inventory with the same amount.

When the payment occurs on March 31, 2014, the accounts payable will be cleared by a debit, and the cash account will be credited with $250 to reflect the cash outflow from the business.

Solution – Division A

Explanation:

Last year's data shows that Division A contributed 60% of total revenue.

Let total revenue for the company last year be x.

Therefore, Division A earned 0.6x.

Similarly, Division B generated 40% of total revenue last year.

This means Division B’s income was 0.4x.

For the current year, Division A’s earnings have dropped by 35%.

Since last year was 0.6x, the amount lost is 35% of 0.6x.

So this year’s revenue: 0.6x - 0.35(0.6x) = (1 - 0.35) * 0.6x = 0.65 * 0.6x = 0.39x.

Division B’s revenue declined by 5% this year.

Last year’s revenue was 0.4x, so this year it is 0.4x - 0.05(0.4x) = 0.95 * 0.4x = 0.38x.

Comparing both, Division A’s revenue (0.39x) exceeds Division B’s (0.38x) this year.

Answer:

The labor cost each month this year is $53,000.

Explanation:

Step 1: Calculate the total labor cost for last year

T=C×N

where;

T=total yearly labor cost from last year

C=cost of labor for each month

N=number of months within a year

In our scenario;

T=unknown, calculation needed

C=$44,000 monthly

N=12 months

Substituting;

T=(44,000×12)=$528,000

Step 2: Calculate this year’s total labor cost

This year’s labor cost can be represented as;

Y=T+I

where;

Y=total labor cost for this year

T=previous year’s labor cost

I=increased cost from last year to this year

Y=unknown, calculation needed

T=$528,000

I=$108,000

Substituting;

Y=(528,000+108,000)=$636,000

Step 3: Calculate the monthly labor cost for this year

This year’s monthly labor expense= this year’s labor cost/number of months per year

where;

Monthly labor cost for this year=unknown, calculation pending

This year’s labor cost=$636,000

Months in a year=12

Substituting;

Monthly labor cost for this year=(636,000/12)=$53,000

The monthly labor expense for this year is $53,000.

Answer:

1 orange

Explanation:

Below are the possible choices for this question:

b. 1 orange.

c. 98 apricots.

d. 3 oranges.

The Production possibilities frontier is a graph that illustrates the different combinations of two goods that a firm can produce when all its resources are optimally utilized.  

When output of one product increases, the resources available for producing the other good diminish. Consequently, the quantity of the alternative product that can be produced decreases. Thus, the opportunity cost for producing any good rises as its production escalates.

Transitioning from point A would entail sacrificing

51 - 50 = 1 oranges

Response:

Natsu Company

1. Journal Adjustments as of October 31:

a. Expense for Supplies $54,370

   Inventory for Supplies $54,370

This entry records the expenses incurred for supplies throughout the period.

b. Expense for Insurance $4,730

   Prepaid Insurance $4,730

This entry captures the insurance expenses for the period in question.

c. Wages Expense $5,000

  Wages Payable $5,000

This entry is to acknowledge the wages that have not been paid for the period.

d. Depreciation on Building $5,400

   Accumulated Depreciation $5,400

This reflects depreciation expense for the current year.

e. Rent Receivable $1,000

   Rent Revenue $1,000

This entry documents the revenue from rent for the month.

f. Unearned Rent $1,450

  Rent Revenue $1,450

This entry is for recognizing rent revenue for two months.

2. General Journal Entries for cash transactions in November 2017 relating to c and e:

c:

Date General Journal                         Debit      Credit

Nov. 7      Salaries Payable   $5,000

                Cash Account                            $5,000

This reflects the disbursement of wages for the final week of October.

e:

Date General Journal    Debit      Credit

Nov. 15    Cash Account      $2,000

               Rent Revenue                     $1,000

               Rent Receivable                   1,000

This entry captures the collection of rent for both October and November.

Clarification:

a) Data and Calculations:

1. Supplies

Beginning Balance         $600

Purchases       54,570

Supplies Expense   54,370*

Ending Balance         $800

2. Policy  Purchase Date   Months of         Cost

                                               Coverage        

         A        April 1, 2016              24          $6,000

         B        April 1, 2017               36            7,200

         C        August 1, 2017           12            1,320

3. Insurance Expense for 2017:

Policy A Nov 2016 to October 2017  $3,000 ($6,000 *12/24)

Policy B April 2017 to October 2017 $1,400 ($7,200 * 7/36)

Policy C Aug. 1 2017 to October 2017 $330 ($1,320 * 3/12)

Total Insurance Expense = $4,730