Answer:
cannot occur until a contract exists.
Explanation:
Revenue according to GAAP Definition is simply said to be increase or decrease of asset and/or combination of both by production or goods delivery, or offering services that are all about a major running operations. Revenue Recognition also according to GAAP is the Revenue is known(recognize) when it has been realized and earned.
SEC Criteria to Recognize Revenue are the evidence of an arrangement exists, Goods Delivered or Services Rendered and others.
Revenue from a contract with a customer cannot be recognized until a contract exists which form the beginning of the contract.
In January, Dieker Company requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,400, Job 3 $760, and general factory use $620. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered.
Answer:
Dr Work in Process Inventory $3,120
Dr Manufacturing Overhead $620
Cr Raw materials Inventory $3,740
Explanation:
Preparation of the summary of journal entry to record raw materials used.
Based on the information given the summary of journal entry to record raw materials used will be:
Dr Work in Process Inventory $3,120
(Job 1 $960+Job 2 $1,400+Job 3 $760)
Dr Manufacturing Overhead $620
Cr Raw materials Inventory $3,740
($3,120+$620)
(Being to record the record raw materials used)
Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish. The marketing manager is engaged in ________.
Answer:
a) functional planning
Explanation:
The functional planning is the planning that need to be done for each type of department so that the goals and the objectives of the company could be accomplish in a efficient and effective manner
Since in the question it is mentioned that the marketing manager have set a goal to rise the sales by 12% over the next three years so this represent that the manager is engaged in the functional planning
At the end of 2016, burger food truck The Patty Wagon’s preliminary trial balance indicated a current ratio of 1.20. Management is contemplating paying some of its accounts payable balance before the end of the fiscal year. Explain the effect this transaction would have on the current ratio. Would your answer be the same if the preliminary trial balance indicated a current ratio of 0.8?
Answer:
No
Explanation:
Lets assume that for current ratio to be 1.2, the current assets were $120000 and Current liabilities were $100000. [120000 / 100000 = 1.2]
Now, if say $20000 of accounts payable were paid, the new current ratio would be:
= ($120000 - $20000) / ($100000 - $20000)
= $100000 / $80000
= 1.25.
Hence, the current ratio would Increase and this should be encouraged.
If current ratio were 0.8, (Current Assets $ 80000 and Current Liabilities $ 100000, 80000 / 100000 = 0.8] and $ 20000 were paid, the new current ratio would be:
= ($80000 - $20000) / ($100000 - $20000)
= $60000 / $80000
= 0.75
Hence, the current ratio would Decrease. This should be discouraged.
Conclusion: No, the answer would not be the same if current ratio were 0.8 instead of 1.2.
Think about a recent order you made (pizza, book, clothes, shoes, etc) online or over the phone. Describe the processes used in taking an order, filling the order, and receiving payment. Create a flowchart showing the steps used. Then, create a second flowchart indicating where you would recommend improvements to the processes and why.
Answer:
Attached below is the required flowchart
Explanation:
Process used in placing an order
Registration/signing up of user selection of goods by userProcess for filing the Order
picking the exact quantity and type of goods placing order on selected items checking outprocess for receiving payment
Paying for goods that are Pay before delivery Cancellation of order incase order was not fulfilledPlease help ASAP!
Lisa is thinking about a career in Hospitality and Tourism. She has always wanted to run a small bed and breakfast. What area might have just the right economy for Lisa?
A. a concentrated manufacturing district
B. a farming community with chicken houses everywhere
C. a small town close to the beach
D. a cold, icy community in a rural area
Answer:
C
Explanation:
Answer:
C. a small town close to the beach
Explanation:
On January 1, 2020, Sheffield Company makes the two following acquisitions. 1. Purchases land having a fair value of $220,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $346,174. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $410,000 (interest payable annually). The company has to pay 12% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Sheffield Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method.
Answer:
A. Dr Land $220,000.00
Dr Discount on Notes Payable $126,174.00
Cr Notes Payable $346,174.00
Dr Cash $287,796.06
Dr Discount on Note Payable $122,203.94
Cr Note Payable $410,000
B. December 31, 2017
Dr Interest expense $26,400
Cr Discount on Notes Payable $26,400
December 31, 2017
Dr Interest expense $34,535.5
Cr Cash $24,600
Cr Discount on Notes Payable $9,935.5
Explanation:
(a) Preparation to Record the two journal entries that should be recorded by Sheffield Company for the two purchases on January 1, 2020.
Dr Land $220,000.00
Dr Discount on Notes Payable $126,174.00
($346,174.00-$220,000.00)
Cr Notes Payable $346,174.00
Dr Cash $287,796.06
Dr Discount on Note Payable $122,203.94
Cr Note Payable $410,000
Calculation for the PV of note using Financial calculator
N=8
I/Y% = 12%
Interest payment – $410,000 x .06 = $24,600
FV = $410,000
PV of note = $287,796.06
Calculation for Discount on note
Discount on note = $410,000 –$287,796.06
Discount on note= $122,203.94
(b) Preparation of the journal entry to Record the interest at the end of the first year on both notes using the effective-interest method.
December 31, 2017
Dr Interest expense $26,400
($220,000 x .12)
Cr Discount on Notes Payable $26,400
December 31, 2017
Dr Interest expense $34,535.5
($287,796.06*.12)
Cr Cash $24,600
($410,000 x .06)
Cr Discount on Notes Payable $9,935.5
($34,535.5-$24,600)
What are bank notes in economics?
Answer:
A banknote is a negotiable promissory note which one party can use to pay another party a specific amount of money. A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note.
Journalize the transactions. ( This information relates to Cheyenne Real Estate Agency. Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,720. 3 Buys office furniture for $3,740, on account.
Answer and Explanation:
The journal entry is given below:
Oct 1
Cash Dr $31,770
To Common stock $31,770
(Being exchange for the common stock is recorded)
Here cash is debited as it increased the asset and credited the common stock as it also increased the equity
Oct 2
No journal entry is required
Oct 3
Office furniture Dr $3,740
To Account payable $3,740
(Being office furniture purchased on an account)
Here office furniture is debited as it increased the asset and credited the account payable as it also increased the liabilities
What do externalities indicate?
a. resource immobility
b. a market failure
c. a lack of information
d. public goods
Answer:
They indicate B. A market failure
XYZ just deposited $3,700 in an account that will earn 7.1 percent per year in compound interest for 9 years. If Svetlana deposits $4,000 in an account in 3 years that earns simple interest, then how much simple interest per year must Svetlana earn to have the same amount of money in 9 years from today as XYZ will have in 9 years from today
Answer:
11.92%
Explanation:
The computation of the simple interest per year is shown below:
Future value would be
= Deposited Amount × (1 + rate of interest)^years
= $3,700 × (1 + 7.1%)^9
= $6,859.73
Now the simple interest is
= (Future value ÷ deposit) - 1 ÷ number of year
= ($6,859.73 ÷ $4,000) - 1 ÷ 9
= 0.71493 ÷ 9
= 11.92%
Dedrick Inc. did not pay dividends in 2018 or 2019, even though 60,000 shares of its 7.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 900,000 shares of $2 par value common stock outstanding. Required: Calculate the annual dividend per share obligation on the preferred stock. (Round your answer to 2 decimal places.) Calculate the amount that would be received by an investor who has owned 3,100 shares of preferred stock and 29,000 shares of common stock since 2017 if a $0.40 per share dividend on the common stock is paid at the end of 2020. (Do not round intermediate calculations.)
Answer:
no hablo tacka tacka
Explanation:
tacka tacka gracias
George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $80,000 and debt in the amount of $70,000, payable in equal annual installments of $7,000 plus interest at the rate of 9% per annum. In the first year of operation, Finch has net taxable income of $40,000. If Finch pays George interest of $6,300 and $7,000 principal payment on the note:
Answer:
Finch has an interest expense deduction of the amount of $6,300.
Explanation:
Based on the information given in a situation where Finch pays George interest of the amount of $6,300 in which the amount of $7,000 was the principal payment on the note which means that Finch will have an interest expense deduction of the amount of $6,300 reason been that the amount of interest that was paid to George which is $6,300 will be the amount that is allowed for deduction.
The slope of the PPF can also be expressed as the ratio of the marginal products of labor to the marginal product of capital. consumer utility. the opportunity cost of the good measured on the horizontal axis. the ratio of abundance of labor to capital.
Answer:
the opportunity cost of the good measured on the horizontal axis.
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
All of the following pairs of goods are substitutes except A. we observe the price of automobiles decreases and the demand for public transit decreases. B. we observe the price of bacon increases and the demand for eggs decreases. C. we observe the price of coffee increases and the demand for tea increases. D. we observe the price of tennis racquets decreases and the demand for golf clubs decreases.
Answer:
Option B: We observe the price of bacon increases and the demand for eggs decreases.
Explanation:
Substitute goods are a defined as goods that has near or a close replacement for each another that is the increase in price leads to an increase in demand for the goods. In substitute goods, price of one good and the quantity demanded of a related goods move in different (opposite) directions. Thus the answer of bacon and egg are as two goods are not substitutes.
A Common example of Substitute Goods includes; margarine and butter, turkey and chicken e. t. c.
You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $3,200. You would like to have a 30 year fully- amortizing loan and the interest rate offered on such a loan is currently 5%. Given these constraints, what is the largest loan you can obtain?
Answer:
When Your Lender Calculates Your Debt To Income Ratio, He Determines That Your Maximum Monthly Payment Can Be No More Than $3,200.
has assets with a market value of $100 million, $10 million of which are cash. has debt of $40 million, and 10 million shares outstanding. Suppose that distributes $10 million as a dividend. Assuming perfect capital markets, what will new market debt-equity ratio be after the dividend is paid
Answer:
See below
Explanation:
First, we need to calculate new stock price.
Current stock price = (Assets market value - debt) / Number of shares outstanding.
= (100 - 40)/10
= $6
Assets value after dividend distribution = 100 - 10
= 90
Number of shares purchased = 10/6 = 1.667 million shares
New stock price = (90 - 40)/(10 - 1.667)
= $7.20
Debt equity ratio = Debt / Equity
Equity = Stock price × number of shares
= $ (7.20 × (10 - 1.667)
= $ (7.2 × 8.33)
= $60
Debt = 40
Debt equity = 40/60 = 0.667 times
Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs
Answer:
Customer orientation to pricing
Explanation:
Based on the description provided, SBC employs product line pricing. This strategy involves setting different prices for various types of bikes within their product line based on the attributes they offer and the target market they cater to, allowing for differentiation and catering to different customer segments. Therefore, option A is correct.
Product line pricing is a strategy that involves setting different prices for different products within a company's product line based on variations in attributes, features, or target customer segments.
It recognizes that not all products in the line are equal and that customers may have different needs, preferences, and willingness to pay.
By offering different price points for different products, companies can cater to diverse customer segments, maximize revenue, and create perceived value for each product variant, allowing customers to choose the option that best aligns with their desired features and budget.
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Your question is incomplete; more probably, your complete question is this:
Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs.
Multiple Choice
A. product line pricing.
B. competitor-based pricing.
C. odd/even pricing.
D. penetration pricing.
E. high/low pricing.
Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 15%. I am buying a firm with an expected perpetual cash flow of $2,000 but am unsure of its risk. If I think the beta of the firm is 0.8, when in fact the beta is really 1.6, how much more will I offer for the firm than it is truly worth
Answer:
The correct solution is "$6,564.01". A further solution is given below.
Explanation:
The given values are:
beta,
= 1.6
market return,
= 15%
cash flow,
= $2,000
risk free rate of interest,
= 3%
Now,
The stock return will be:
= [tex]3+ 1.6\times (15-3)[/tex]
= [tex]3+ 1.6\times 12[/tex]
= [tex]22.2 \ percent[/tex]
The actual worth of the firm will be:
= [tex]\frac{cash \ flow}{rate \ of \ return}[/tex]
= [tex]\frac{2000}{22.2 \ percent}[/tex]
= [tex]\frac{2000}{0.222}[/tex]
= [tex]9,009[/tex]
With 0.8 beta, the stock return will be:
= [tex]3+ 0.8\times (15-3)[/tex]
= [tex]3+ 0.8\times 12[/tex]
= [tex]12.6 \ percent[/tex]
So that I'm paying for the firm,
= [tex]\frac{2000}{12.6 \ percent}[/tex]
= [tex]\frac{2000}{0.126}[/tex]
= [tex]15,573.01[/tex] ($)
Hence,
I'm paying,
= [tex]15,573.01-9,009[/tex]
= [tex]6,564.01[/tex] ($)
Which of the following is the most important factor contributing to the specialization of the architect and engineer roles into separate functions?
Specialization ensures that no one person is the only knowledgeable person on a project.
Specialization assists with more precise budget projections.
Specialization ensures one role is not more important than the other roles on a project. Specialization better ensures plans are implemented more efficiently.
Answer:
Its Making budget is working on a company on a city that the budget is high to pay you the boss of the company. I prefer working in the city
Jackson Inc. listed the following data for 2019: Budgeted factory overhead $1,272,000 Budgeted direct labor hours 80,000 Budgeted machine hours 40,000 Actual factory overhead 1,201,400 Actual direct labor hours 86,700 Actual machine hours 39,800 Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 (round calculations to 2 significant digits) is:
Answer: $31.80 per machine hour
Explanation:
Based on the information that have been given in the question, since the overhead was applied by Jackson Inc., therefore, the firm's predetermined overhead rate will be:
= Budgeted factory overhead / Budgeted machine hours
= $1,272,000 / 40000
= $31.80 per machine hour
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $35,000 at the beginning of the month and $23,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $57,600 and direct labor cost of $31,900. The actual manufacturing overhead cost incurred was $54,300. The manufacturing overhead cost applied to Work in Process was $53,600. The cost of goods manufactured for June was:
Answer:
the cost of goods manufactured is $154,600
Explanation:
The computation of the cost of goods manufactured is shown below:
= Opening work in process inventory + direct material cost + direct labor cost + manufacturing overhead cost applied - ending work in process inventory
= $35,000 + $57,600 + $31,900 + $53,600 - $23,500
= $154,600
Hence, the cost of goods manufactured is $154,600
Case Study: Melanie’s Breakeven Analysis Melanie is considering opening a not-for-profit child care and education center and wants to figure out what her monthly budget would look like. She has come up with the following sets of numbers, which may or may not be realistic in her area. Monthly Fixed Costs $4,000 Number of Children Served 15 Salary and Benefits Costs $7,000 Estimated Food Costs $1,000
Answer:
$800
Explanation:
Calculation for how much would she need to charge per month for tuition in order to break even
Using this formula
Amount to charge to break even=[(Monthly Fixed Costs+Salary and Benefits Costs+Estimated Food Costs)÷Number of Children Served]
Let plug in the formula
Amount to charge to break even=[($4,000+$7,000+$1,000)÷15]
Amount to charge to break even=$12,000/15
Amount to charge to break even=$800 per month
Therefore the amount she would need to charge per month for tuition in order to break even will be $800
Determine how much interest expense the company will include in the income statements and the amount of the liability the company will report in the balance sheets for this note for 2021 and 2022. (Do not round intermediate calculations. Round your answers to the nearest whole dollars.) 2021 2022 Interest expense $2,904 $3,252 Liability amount $27,104 $23,852
Answer:
To find the interest expense, first get the present value of the note.
2021 interest 2022 Interest
Present value = 35,000 / (1 + 12%)³ = 12% * (24,912 + 2,989)
= $24,912 = $3,348
2021 interest is added because
Interest = 12% * 24,912 it is now part of the liabilities.
= $2,989
2021 Liability
= Present value of Note payable + Interest for the year
= 24,912 + 2,989
= $27,901
2022 Liability
= 27,901 + 3,348
= $31,249
Figures are different from yours as yours lacks the complete details so I used a similar question.
The interest expense in the income statements and the liability amount for the balance sheets for this note for 2021 and 2022 are:$2,904 and $27,104 for 2021$3,252 and $23,852 for 2022
Interest Expense for 2021:
$2,904 Interest Expense for 2022: $3,
252 Liability Amount for 2021: $27,
104 Liability Amount for 2022: $23,852
We know that;Interest = Principal × Rate × Time Where,
Interest = Interest Expense Principal = Liability Amount Rate = Rate of Interest per year Time = Time in years Let the Principal amount for this note be P.
The interest rate is not provided in the question but is required for calculating the Principal.
Hence, we will use the following formula to calculate the interest rate:
Interest = Principal × Rate × Time Rate = Interest / (Principal × Time)
Substituting the values;
For 2021:Interest = $2,904
Principal = $27,104
Time = 1 year
Rate = 2904 / (27104 × 1)
Rate = 0.107 or 10.7% (approx)
Therefore, the Principal amount is:
P = Liability Amount - 150 (transaction fees)
P = $27,104 - $150P = $26,954
The interest expense for 2021 can now be calculated as:
Interest Expense = Principal × Rate
Interest Expense = $26,954 × 0.107
Interest Expense = $2,890 (approx)
The liability amount for 2022 can be calculated by subtracting the Principal repaid from the Liability Amount in 2021.
The Principal repaid can be calculated by subtracting the interest expense in 2021 from the total payment made in 2021.
Total Payment in 2021 = Interest Expense + Principal repaid Total Payment in 2021 = $2,904 + Principal repaid
Let the Principal repaid in 2021 be p.
P + Interest - 150 = Total Payment in 202 1 P + $2,904 - 150 = $27,104 P = $24,350
Therefore, the Principal repaid in 2021 = $24,350 - $150 = $24,200
The Liability Amount for 2022 can now be calculated as:
Liability Amount for 2022 = Liability Amount in 2021 - Principal repaid in 2021 Liability Amount for 2022 = $27,104 - $24,200 Liability Amount for 2022 = $2,904
The Principal for the note in 2022 can be calculated as follows:
P = Liability Amount - 150
P = $23,852 - $150
P = $23,702
Now, the interest expense for 2022 can be calculated as:
Interest Expense = Principal × Rate
Interest Expense = $23,702 × 0.137
Interest Expense = $3,250 (approx)
Therefore, the interest expense in the income statements and the liability amount for the balance sheets for this note for 2021 and 2022 are:$2,904 and $27,104 for 2021$3,252 and $23,852 for 2022
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At the second week in March, job 710 has an accumulated beginning cost of $37,800. A) $9000 of direct materials were used. B) 300 hours of direct labor were charged to the job at $40 per hour C) Manufacturing Overhead was charged to the job at the rate of $40 per machine hour 160 machine hours were used. The entire Finished Goods Inventory was sold . Transfer the appropriate number to the Costs of Goods sold.
Answer:
Costs of Goods sold = $65,200
Explanation:
Since the entire Finished Goods Inventory was sold, thhis implies that there is no accumulated ending cost.
The Costs of Goods sold can be calculated as follows:
Accumulated beginning cost = $37,800
Direct materials were used = $9,000
Direct labor = Number of direct labor hours * Labor cost per hour = 300 * $40 = $12,000
Manufacturing Overhead = Number of machine hours * Cost per machine hour = 160 * $40 = $6,400
Therefore, we have:
Costs of Goods sold = Accumulated beginning cost + Direct materials were used + Direct labor + Manufacturing Overhead = $37,800 + $9,000 + $12,000 + $6,400 = $65,200
Genting Berhad is a Malaysian conglomerate with holdings in plantations and tourist resorts. The beta estimated for the firm relative to the Malaysian stock exchange is 1.15, and the long-term government borrowing rate in Malaysia is 11.5%. The Malaysian risk premium is 12%. The expected return on the stock for a Malaysian National who is not Internationally diversified is closest to:
Answer:
25.3%
Explanation:
The expected return can be determined using the capital asset pricing model
The expected return = risk free return + (risk premium x beta)
11.5% + (1.15 x 12%) = 25.3%
A trial balance has total debits of $36,000 and total credits of $48,500. Which one of the following errors would create this imbalance?
A.) A $6,250 debit to utilities expense in a journal entry was incorrectly posted to the ledger as a $6,250 credit, leaving the utilities expense account with a $7,000 debit balance.
B.) A $12,500 debit to salaries expense in a journal entry was incorrectly posted to the ledger as a $12,500 credit, leaving the salaries expense account with a $2,350 debit balance.
C.) A $6,250 credit to consulting fees earned (revenues) in a journal entry was incorrectly posted to the ledger as a $6,250 debit, leaving the consulting fees earned account with a $14,300 credit balance.
D.) A $6,250 debit posting to accounts receivable was posted mistakenly to land.
E.) A $12,500 debit posting to equipment was posted mistakenly to cash.
F.) An entry debiting cash and crediting accounts payable for $12,500 was mistakenly not posted.
Please answer which one is it. Thank you!
Answer:
$2,250 debit to Rent Expense in a journal entry is incorrectly posted to the ledger as a $2,250 credit, leaving the Rent Expense account with a $3,000 debit balance
Explanation:
Answer:
is the repondet the
F.) An entry debiting cash and crediting accounts payable for $12,500 was mistakenly not posted
Answer correctly and u will receive brainliest and 15 pts
Answer:
b
Explanation:
Answer:
The chemistry professor with a doctoral degree would have the highest pay.
The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory, 7/1/2020 33,900 Sales revenue 399,000 Sales returns 13,900 Purchases 259,000 Purchase discounts 7,900 Purchase returns 11,900 Freight-in 20,800 In addition, you determine that the June 30, 2021, inventory balance is $41,900. Required: Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2021.
Answer:
$252,000
Explanation:
Calculation for the cost of goods sold for the Askew Company for the year ending June 30, 2021.
First step is to calculate the Net Purchase
Purchases 259,000
Less Purchase discounts (7,900)
Less Purchase returns (11,900)
Add Freight-in 20,800
Net purchase 260,000
Now let calculate the cost of goods sold
Inventory, 7/1/2020 33,900
Add 260,000
Less inventory balance ($41,900)
Cost of goods sold $252,000
Therefore the cost of goods sold for the Askew Company for the year ending June 30, 2021 will be $252,000
Suppose the price elasticity of demand for heating oil is 0.1 in the short run and 0.9 in the long run.
a. If the price of heating oil rises from $1.20 to $1.80 per gallon, the quantity of heating oil demanded will by % in the short run and by % in the long run. The change is in the short run because people can respond easily to the change in the price of heating oil.
b. Why might this elasticity depend on the time horizon?
Answer: there is a 40% increase demand on a short run,
there is a 36.4% increase in demand on a long run
Elasticity depends on time horizon due to the possibility that oil substitutes might come into picture and people would prefer that over heated oil
Explanation:
Price elasticity in short run= 0.1
Price elasticity in long run = 0.9
For the short run, % change in demand would be; 0.1 = %change in demand÷ 1.8-1.2/ 1.2+1.8/2
0.1 = %change in demand/ 0.6/1.5
%change in demand = 0.4
So, there is a 40% increase demand on a short run
For 0.9, %change in demand = 0.9 × 0.6/ 1.5 = 0.36
So, there is a 36.4% increase in demand on a long run
b) Elasticity depends on time horizon due to the possibility that oil substitutes might come into picture and people would prefer that over heated oil
corporation borrowed money through an 8-month, 9% note for $100,000 on October 1, 2020. The note is due on May 30, 2021. The correct adjusting entry at year-end, December 31, 2020 (assuming no other adjustments had been made) would include an: Select one: a. Decrease to interest payable for $6,000 b. Increase to interest expense for $3,750 c. Increase to interest payable for $9,000 d. Increase to interest payable for $2,250 e. Decrease to cash for $6,000
Answer:
d. Increase to interest payable for $2,250
Explanation:
At year end which is December 31, 2020, the company has incurred an interest expense of 3 months on the amount borrowed since October 1 to December 31 is a period of three months.
As a result, the interest expense to be accrued for is computed thus:
accrued interest expense= $100,000*9%*3/12
accrued interest expense=$2,250
The appropriate entries would to debit(increase) expense with $2,250 while interest payable is credited(increase) with the same amount
