Recording Journal Entries
Nathanson Corporation was organized on May 1. The following events occurred during the first month.
A. Received $68,000 cash from the five investors who organized Nathanson Corporation. Each investor received 101 shares of $10 par value common stock.
B. Ordered store fixtures costing $12,000.
C. Borrowed $20,000 cash and signed a note due in two years.
D. Purchased $17,000 of equipment, paying $1,900 in cash and signing a six-month note for the balance.
E. Lent $1,400 to an employee who signed a note to repay the loan in three months.
F. Received and paid for the store fixtures ordered in (b).
Prepare journal entries for each transaction.
Answers
Answer:
A.
Cash $68,000 (debit)
Common Stock $68,000 (credit)
B.
Store fixtures $12,000 (debit)
Payable $12,000 (credit)
C.
Cash $20,000 (debit)
Note Payable $20,000 (debit)
D.
Equipment $17,000 (debit)
Cash $1,900 (credit)
Note Payable $15,100 (credit)
E.
Note Receivable $1,400 (debit)
Cash $1,400 (credit)
F.
Payable $12,000 (debit)
Cash $12,000 (credit)
Explanation:
A.
Recognize Cash and Recognize Equity - Common Stock
B.
Recognize Store fixtures and recognize a liability - Payable
C.
Recognize Cash - Asset and a Liability - Note Payable
D.
Recognize Equipment - Asset , Recognize Liability - Note Payable and de-recognize the Asset - Cash
E.
De-recognize Cash and Recognize the Asset - Note Receivable
F.
De-recognize the Liability - Payable and de-recognize the Asset Cash
Related Questions
True or false: a business often has to pay taxes based on its inventory
Answers
False. A business does not usually have to pay taxes based on its inventory directly. Taxes on inventory are not typically levied as a standalone tax. Instead, businesses are generally required to pay taxes on their income or profits, which may be influenced by the value of their inventory.
When calculating income or profit, businesses may consider the cost of goods sold (COGS), which includes the expenses associated with producing or acquiring the inventory. By deducting the COGS from the revenue generated from sales, the taxable income or profit is determined.
In some cases, businesses may be subject to specific taxes related to inventory, such as property taxes or excise taxes on certain types of goods. However, these taxes are not solely based on the inventory itself but rather on factors such as the value or type of inventory.
Overall, taxes paid by a business are typically based on factors beyond inventory, such as income, profits, or specific tax regulations applicable to the business and its operations.
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Marco works as a freelance science writer. He wants to improve his productivity. Which of the following steps is he most likely to take? (5 points)
Group of answer choices
Build a website highlighting his expertise and publications
Take a week off to relax and play video games
Invest in a better computer and a faster Internet connection
Take out an advertisement for his services
Answers
Answer:
its c and dont remove it this time eroupa
Explanation:
Please see the picture attached
Answers
A person's income is the sum of money they receive as payment for their labor, services, or investments.
Describe common stock.
A type of tradable asset, or security, known as common stock represents ownership in a business. You have the right to vote on things like corporate policies and board of director decisions if you own common stock in a company. Common stock is just one kind of stock available for trading on open markets.
In other words, it's a method of allocating company ownership; as a result, each share of common stock corresponds to a certain proportion of a corporation. One share, for instance, would represent one percent ownership of a company with 100 outstanding shares.
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On January 1, 2018, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $360,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2018, in the amount of $31,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2018?a. Cash 31,000 Rent expense 31,000 b. Cash 31,000 Lease receivable 31,000 c. Cash 31,000 Rent revenue 31,000 d.Rent revenue 31,000 Cash 31,000
Answers
Answer:
C.Dr Cash 31,000
Cr Rent revenue 31,000
Explanation:
Based on the information given we told that the lease agreement which is an operating lease calls for four annual payments which begins on January 1, 2018, in the amount of $31,000 which means that what Tabitha should record on January 1, 2018 will be to:
Dr Cash 31,000
Cr Rent revenue 31,000
Solutions Company - Unadjusted Trial Balance as of December 31.
Account Titles
Unadjusted Trial Balance Dr. Unadjusted Trial Balance Cr.
100: Cash 20,000
110: Accounts Receivable 0
120: Supplies 7,600
160: Machinery 50,000
161: Accumulated Depreciation 20,000
200: Accounts Payable 0
205: Interest Payable 0
210: Wages Payable 0
230: Unearned Rental Fees 7,200
240: Note Payable 30,000
300: Common Stock 10,000
310: Dividends 9,500
320: Retained Earnings 14,200
400: Rental Fees 32,450
600: Wage Expense 24,500
610: Interest Expense 2,250
620: Supplies Expense 0
630: Depreciation Expense 0
113,850 113,850
Totals
Requirement:
Prepare year-end adjusting journal entries for each of these separate situations.
As of December 31, employees had earned $400 of unpaid and unrecorded wages. The next payday is January 4 at which time $1,200 in wages will be paid.
The cost of supplies still available at December 31 is $3,450.
The notes payable requires an interest payment to be made every three months. The next payment occurs after the new year begins. The amount of unrecorded accrued interest at December 31 is $800.
Analysis of the unearned rental fees shows that $3,200 remains unearned at December 31.
In addition to the machinery rental fees included in the revenue account balance, the company has earned another $2,450 in unrecorded fee that will be collected on January 31 of next year.
Depreciation expense for the year is $3,800.
Answers
The Preparing Adjusted Trial Balance with the help of Worksheet: is given below:
The Adjusted Trial BalanceSolutions Company
Worksheet
December 31
Accounts Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance
Debit Credit Debit Credit Debit Credit
Cash $20,000 $20,000
Accounts Receivable 0 $2,450 2,450
Supplies 7,600 $4,150 3,450
Machinery 50,000 50,000
Accumulated Depreciation $20,000 3,800 $23,800
Accounts Payable 0 0
Interest Payable 0 800 800
Salaries Payable 0 400 400
Unearned Rental Fees 7,200 4,000 3,200
Note Payable 30,000 30,000
Common Stock 10,000 10,000
Dividends 9,500 9,500
Retained Earnings 14,200 14,200
Rental Fees 32,450 6,450 38,900
Salaries Expense 24,500 400 24,900
Interest Expense 2,250 800 3,050
Supplies Expense 0 4,150 4,150
Depreciation Expense 0 3,800 3,800
Totals $113,850 $113,850 $15,600 $15,600 $121,300 $121,300
Preparing Income Statement:-
Solutions Company
Income Statement
For the Year Ended December 31
Accounts Amount Amount
Revenue:-
Rental Fees $38,900
Total Revenue $38,900
Expenses:-
Salaries Expense $24,900
Interest Expense 3,050
Supplies Expense 4,150
Depreciation Expense 3,800
Total Expenses ($35,900)
Net Income $3,000
Preparing Statement of Retained Earnings:-
Solutions Company
Statement of Retained Earnings
For the Year Ended December 31
Accounts Amount
Retained Earnings 14,200
Net Income 3,000
$17,200
Dividends (9,500)
Retained Earnings, Ending $7,700
Preparing Balance Sheet:-
Solutions Company
Balance Sheet
December 31
Accounts Amount Amount
Assets:-
Cash $20,000
Accounts Receivable 2,450
Supplies 3,450
Machinery 50,000
Accumulated Depreciation (23,800)
Total Assets $52,100
Liabilities:-
Accounts Payable $0
Interest Payable 800
Salaries Payable 400
Unearned Rental Fees 3,200
Note Payable 30,000
Total Liabilities $34,400
Stockholders Equity:-
Common Stock $10,000
Retained Earnings, Ending 7,700
Total Stockholders Equity $17,700
Total Liabilities and Stockholders Equity $52,100
Preparing Closing Entries:-
Solutions Company
General Journal
December 31
Date Accounts Title and Explanation Debit Credit
December 31 Rental Fees $38,900
Income Summary $38,900
(To close Revenue Account)
December 31 Income Summary $35,900
Salaries Expense $24,900
Interest Expense $3,050
Supplies Expense $4,150
Depreciation Expense $3,800
(To close Expenses Accounts)
December 31 Income Summary $3,000
Retained Earnings $3,000
(To close Income Summary)
December 31 Retained Earnings $9,500
Dividends $9,500
(To close Dividends Account)
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Periodic inventory using FIFO, LIFO, and weighted average cost methods
The units of an item available for sale during the year were as follows:
Date Line Item Description Units Cost per Unit Amount
Jan. 1 Inventory 20 units at $32 $640
Aug. 13 Purchase 5 units at $34 170
Nov. 30 Purchase 4 units at $36 144
Available for sale 29 units $954
There are 17 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).
a. First-in, first-out (FIFO) method
b. Last-in, first-out (LIFO) method
c. Weighted average cost method
Answers
The cost of inventory using the first-in, first-out (FIFO) method, last-in, first-out (LIFO) method and weighted average cost method is $568, $602, $578 respectively.
What is FIFO?First in, first out (FIFO) is a method of asset management and valuation in which assets produced or acquired first are sold, used, or disposed of first.
Given Information,
Jan. 1: Inventory 20 units at $32
Aug. 13: Purchase 5 units at $34
Nov. 30: Purchase 4 units at $36
Units available for sale is 29 units.
Units in the physical inventory is 17 units.
1) Calculation of inventory cost using FIFO (first-in, first-out)
The cost of ending inventory is the cost of the last units bought.
Ending inventory= 4× $36 + 13× $34 = $568
2) Calculation of inventory cost using LIFO (last-in, first-out)
The cost of the ending inventory is the cost of the first units bought.
Ending inventory= 5× $32 + 12× $34 = $602
3) Calculation of inventory cost using Weighted-average:
Weighted average price= ($32+$34+$36)/3 = $34
Ending inventory= 17*$34 = $578
Therefore, the cost of the closing inventory using the FIFO method is $568, using LIFO it is $602, and $578 using the weighted average method.
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Explain how using a credit card can be similar to
getting an interest free loan
Answers
Answer: Credit cards can easily work as a short-term loan, but cards that offer 0% APR for a limited time have the potential to be “free.” The key to using a credit card as an interest-free loan is making sure you can pay every cent of your balance off before your card's introductory offer ends.
Explanation:
Which of the global PR strategies does the Coca-Cola website use
your discussion with examples from the website.
Answers
Coca- Cola uses a combination of global PR strategies on its website. The company has historically employed the standardization approach.
Presenting a harmonious brand communication and image across all requests. Coca- Cola also adapts its communication to specific original requests following the localisation strategy. On its website, Coca- Cola features elevations, events, and marketing campaigns that appeal to indigenous requests while still adhering to the company's core values. also, Coca- Cola recognises artistic differences, employing across-cultural strategy in its global communication.
By exercising these approaches, Coca- Cola can maintain a consistent brand identity while connecting with different consumers across various requests.
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A retailer purchases merchandise with a catalog list price of $70,000. The retailer receives a 25% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period
Answers
If a retailer acquires goods with a $70,000 catalog list price. The sum of $51,450 in cash is required to settle this invoice during the discount period.
How much Cash is needed to pay the invoice?The first step is to use this method to determine the Price after Trade Discount.
Catalog price - trade discount = the final price.
Price after Trade Discount = $70,000 - (25% × $70,000)
Price after Trade Discount = $70,000 - $17,500
Price after Trade Discount = $52,500
Second step :
to calculate the Cash required to pay invoice using this formula
Cash required to pay invoice = Price after Trade Discount - Purchase Discount
Let plug in the formula
Cash required to pay invoice = $52,500 - (2% × $52,500)
Cash required to pay invoice = $52,500 - $1050
Cash required to pay invoice = $51,450
Therefore the amount of cash needed is: $51,450
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Which of the following phrases is an example of structural que ?
Answers
Answer:
excuse me but where is the phrase?
Adah works in logistics for a manufacturing firm and manages inventories. Her managers want the organization to be more lean, but Adah knows that stockouts can lead to customer dissatisfaction. Thus, determining optimal reorder points is vital. If the usage rate of her current product is ten units per day, the order lead time is five days, and the safety stock is ten, what is the reorder point
Answers
The reorder point for Adah's Logistics Company is 60 units.
What is the reorder point?The reorder point (ROP) is the specific level at which stock needs to be replenished to avoid customer dissatisfaction while achieving inventory leanness.
In other words, the reorder point is the point at which orders can be placed to replenish stock without encountering a stockout or overstocking.
The calculation of the reorder point is to multiply the average daily usage rate by the lead time in days, plus safety stock.
Data and Calculations:
Usage rate per day = 10 units
Lead time = 5 days
Safety stock = 10 units
Reorder point = 60 (10 x 5 + 10)
Thus, the reorder point for Adah's Logistics Company is 60 units.
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Economic policy is a classic example of government playing a role in economics. Discuss 1 positive role and 1 negative
role that you feel government plays in economics.
Answers
The positive role of the government in economics is maintains competition in the marketplace and redistributes income. The negative role of the government in economics is lack of efficiency.
What is government?Government refers to the authority which rules the entire nation. It is the association of the people working together to serve the nation and act for the welfare of the nation. The government also functions to save the nation from the outsiders.
The government creates the social and legal structure that governs how the economy runs, ensures market competition, distributes public amenities and services, and redistributes money.
The drawbacks of the government's economic role include an absence of competition, which can result in a dearth of efficiency and innovation.
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11. John rates Peter an average worker, “excellent” on all his performance evaluations. The rest of staff suspects that Peter gets high ratings because he graduated from the same prestigious university and was a member of the same fraternity as John. If this were accurate, what rating error has the staff identified? Explain your answer
Answers
Considering the situation described in the question, if the allegations were accurate, the rating error the staff identified is known as the "Similarity Bias" error.
This is because the Similarity Bias is a type of rating error where the rater rates a person or candidate higher than he deserves because they shared or have some similarities like having played for the same football team or attended the same school.There are other types of rating bias that do not apply to this situation.These include Halo bias and Leniency bias.Hence in this case the correct answer is "Similarity Bias"
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Versatility and adaptability are tremendous liabilities.
Answers
False. Versatility and adaptability are tremendous assets.
What are Versatility and adaptability?
Adaptability is the ability of a person and or a leader to acclimatize into different environments. This might be a:
Versatility, on the other hand, is the ability to be flexible, that is possessing many different abilities or skills with allow one to adapt easily.
Inherent in their definitions lie their differences. However, each quality is very crucial for any person either as a follower or as a leader.
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Why aren’t fluctuations in the stock market
necessarily indicative of how the economy’s doing?
Answers
Answer:
Because right now the government, especially in the United States, is pumping money into big companies to keep them afloat. It affects the market positively when in reality it isn't doing anything but keeping that company specifically afloat.
Keeping your ___ and ___in mind will dictate what you say and how you say it.
Answers
Answer:
Audience and purpose.
Hopefully this helps! :)
explain Milton Friedman’s arguments against stakeholder theory
Answers
Friedman's main argument against stakeholder theory was that businesses have a sole responsibility to their shareholders, who have invested their money in the company with the expectation of earning a return on their investment. According to Friedman, businesses that try to satisfy the demands of various stakeholders, such as employees, customers, and suppliers, at the expense of shareholder returns are engaging in "socialist" behavior that undermines the efficient operation of the market economy.
Friedman also argued that businesses should not take on social or political causes because they lack the expertise and democratic legitimacy to do so. In his view, social and political issues are best addressed by government institutions and civil society organizations, not by businesses.
Furthermore, Friedman believed that businesses that engage in activities that benefit society, such as philanthropy or environmental initiatives, are effectively taxing their shareholders to support social causes that they may not agree with. He argued that it is not the role of businesses to make such decisions, but rather the role of individual shareholders and society as a whole.
Overall, Friedman's arguments against stakeholder theory were grounded in his belief that the sole responsibility of businesses is to maximize profits for their shareholders, and that businesses should not engage in activities that are outside of their core competencies or that may negatively impact shareholder returns.
Housekeeping falls in category of
a. Facility level activities
b. All of these
c. Batch level activities
d. Product level activities e. Unit level activities
Please explain the reason for your selected answer. Thanks.
Answers
Housekeeping falls in category of Facility level activities. Hence, option A is correct.
What is the category of housekeeping?Institutional and domestic housekeeping are the two varieties. Institutional housekeeping is the term used to describe upkeep in structures that provide commercial lodging, like hotels, resorts, and inns. Cleaning the bedrooms, kitchens, dining rooms, living rooms, yards, and other sections of the home constitutes domestic housekeeping.
The hotel's operational division is housekeeping. It is in charge of keeping the surrounds, public spaces, rear areas, and rooms clean and well-maintained.
Thus, option A is correct.
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choosing a computer that costs_______ instead of one that costs ________ means that you'll have less money available for other purchases. $1800;$1900. $1700; $1900. $1800; $1700. $1700; $1800
Answers
Answer:
$1800; $1700.
Explanation:
The scenario presented is that a customer had a choice between two computers. The client spent much money by opting for the high priced computer, leaving little for other requirements. The options will a high figure comes first in the equation. If the customer could have picked a low-priced computer, somebody would have selected the options that start with a relatively low figure followed by a high
Answer: 1800 1700
Explanation:
Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000
compensation for services he performs for KBS during the year. He performed a significant amount of
work for the entity, and he was heavily involved in management decisions for the entity (he was not a
passive investor in KBS). After deducting Dave's compensation, KBS reports taxable income of
$30,000.
How much FICA and/or self-employment tax is Dave required to pay on his compensation and his
share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability
company (ignore the 0.9 percent additional Medicare tax)? (Do not round any percentage
calculations. Round other intermediate calculations and final answers to the nearest whole dollar
amount.)
C corporation
S corporation
Limited liability company
Answers
Answer: $12717
Explanation:
1. The amount of FICA and/or self-employment tax that Dave is required to pay on his compensation and his
share of the KBS income if KBS is formed as a C corporation, will be:
= 7.65% × $75000
= 7.65/100 × $75000
= 0.0765 × $75000
= $5738
2. As an S Corporation will be:
= 7.65% × $75000
= 7.65/100 × $75000
= 0.0765 × $75000
= $5738
3. As a limited liability company will be:
Dave's compensation = 75,000
Dave's portion of income will be calculated as:
= 50% × $30,000
= 0.5 × $30,000
= $15,000
Total will then be:
= $75000 + $15000 = $90000
We then calculate the net earnings which will be:
= 92.35% × $90000
= 0.9235 × $90000
= $83115
The FICA and/or self-employment tax that Dave is required to pay will then be:
= 15.3% × $83115
= 0.153 × $83115
= $12717
If the first two statements below are true, is the third statement true?
A) Mr. Brown's rabbits are grey.
B) All grey creatures are kind.
C) Mr. Brown's rabbits are unkind.
Answers
Answer: No, it's not true.
Explanation: It is so because it's already mentioned that all grey creatures are kind and Mr. Brown's rabbits are kind. Moreover rabbits will be in the set of all creatures. Hence, rabbits are kind.
Which of the following statements about consumer sovereignty is true?
Consumers’ needs and wants dictate what goods and services producers provide.
Influence of consumers over government rules regulate the marketplace.
Conditions where buyers and sellers are willingly engaging in market transactions.
Consumers dictate the prices of goods and services.
Answers
The statement that is true of consumer sovereignty is A. Consumers’ needs and wants dictate what goods and services producers provide.
What dictates the products made ?Consumer sovereignty is the notion that the consumers are the predominant forces of the market economy and choose what products and services producers should provide in order to earn a profit.
In this way, if consumers cease buying something then the enterprises must conform their offers to fulfill the modified demand. This concept remains at the hub of economies based on the market and advances innovation and competition among firms.
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Answer the question based on the following supply and demand schedules in units per week for a product. Price Quantity Demanded Quantity Supplied $60 100 400 50 140 340 40 180 280 30 220 220 20 260 160 10 300 100 If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total support payments to producers would be
Answers
Answer:
$4,000
Explanation:
For computation of the government's total support payments to producers first we need to find out the surplus units which is shown below:
Floor price = $40
\(Q_d = 180\)
\(Q_s = 280\)
\(Surplus\ units\) = \(Q_s - Q_d\)
= 280 - 180
= 100
Therefore,
The Total support payments to producer = Price floor × Surplus units
= $40 × 100
= $4,000
So, for determining the total support payment to producer we simply multiply the price floor with surplus units.
Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?
Answers
Farmers' markets: The typical farmers' market may be the closest thing to ideal competition that exists in the real world. Small customers producers charge relatively similar pricing for products that are almost equivalent.
Considering that there are so many small producers in the agricultural sector and that they have so little. This industry perhaps displays the closest thing to ideal competition because of its control over the selling pricing of their products. Monopolistic Competition Despite the fact that numerous businesses use customers marketing techniques and recipes, McDonald's is nonetheless distinct. Because the products are not uniform, the market cannot be completely competitive.
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Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
(Dollars)
Quantity (Dollars)
0
1
2
3
4
5
6
7
5
6
8
11
15
20
26
35
05
06
07
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
6
12
18
24
30
36
42
AAAAAAA
Profit
(Dollars)
In order to maximize profit, how many units should the firm produce? Check all that apply.
04
Answers
The solution to the given question when we consider total cost and total revenue, given in the following table:
The Financial TableQuantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue | Profit
------- | -------- | -------- | -------- | -------- | --------
0 | 5 | 5 | 0 | 0 | -5
1 | 11 | 6 | 6 | 6 | 1
2 | 17 | 6 | 12 | 6 | 5
3 | 24 | 7 | 18 | 6 | 4
4 | 31 | 8 | 24 | 6 | -7
5 | 39 | 8 | 30 | 6 | -9
6 | 47 | 8 | 36 | 6 | -11
7 | 55 | 8 | 42 | 6 | -13
As you can see, the firm's profit is maximized at quantity 3. This is because the marginal revenue is equal to zero at this point, which means that the firm is not making any additional profit by producing more units. In fact, if the firm produces more units, it will actually start to lose money.
Therefore, the answer to the question is 3.
In summary:
The firm's profit is maximized at quantity 3.This is because the marginal revenue is equal to zero at this point.If the firm produces more units, it will start to lose money.Therefore, the answer to the question is 3.Read more about marginal revenue here:
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Which statements about Section 1231 assets are true? Pick all that apply!!
Question options:
If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss
If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a long term capital gain that is taxed at favorable capital gains rates
If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur because of recapture provisions.
If Section 1231 assets are sold and the taxpayer has a realized loss, the is limited like a capital loss
Answers
Answer:
The answer is below
Explanation:
Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.
Hence, in this case, the correct answer or statement to the question are:
1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss
2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur
If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run:
a.reduce the level of output its produces
b.increase the level of output it produces
c.neither increase nor decrease the level of output it produces
d.shut down
Answers
If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run shut down.
For a perfectly competitive firm, the marginal revenue tends to equal price and as well as the average revenue. So, this implies that the firm's marginal cost curve in its short-run supply curve for values is thus greater than the average variable cost. So, if the price drops below average variable cost, the firm shuts down.
So, a firm's total profit is maximized by the producing the level of output at which marginal revenue for the last unit produced will thus equal its marginal cost, or MR = MC.
Hence, option D is correct.
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how would you evaluate the courts claim that giving a gift of trading information is the same thing as trading by the tipper followed by a gift of the proceeds?
Answers
Answer:
Explanation:
To evaluate the courts claim that giving a gift of trading information is the same thing as trading by the tipper followed by a gift of the proceeds, it is necessary to consider the legal definitions and implications of these actions.
Under the law, trading on inside information, or "tipping," is illegal if it is done for personal gain or to benefit someone else. This is because it allows individuals to profit from non-public information that others do not have access to, which can be unfair and harmful to the market.
However, if the tipper simply provides the inside information as a gift, without any expectation of receiving anything in return, this may not be considered illegal. In this case, the tipper is not personally profiting from the information and is not directly benefiting anyone else through the gift.
Therefore, the courts claim that giving a gift of trading information is the same thing as trading by the tipper followed by a gift of the proceeds may not be entirely accurate. While both actions involve the sharing of inside information, the motivations and implications of these actions are different and may be treated differently under the law.
Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per month plus $27 per unit. For the month of December, the company planned for activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling and administrative expense for the month was $168,150.
The activity variance for selling and administrative expense in December would be closest to:
Answers
The activity variance for selling and administrative expense in December is negative, which means that the actual expense was less than what we would expect based on the flexible budget.
To calculate the activity variance for selling and administrative expense in December, we need to use the cost formula provided by Lartey Corporation, which is $22,200 per month plus $27 per unit.
First, let's calculate the planned (budgeted) selling and administrative expense for December based on the planned activity level of 5,300 units:
Planned selling and administrative expense = $22,200 + ($27 x 5,300) = $171,900
Next, we can calculate the flexible budget for selling and administrative expense based on the actual level of activity, which was 5,270 units:
Flexible budget for selling and administrative expense = $22,200 + ($27 x 5,270) = $170,790
Finally, we can calculate the activity variance by subtracting the flexible budget from the actual selling and administrative expense:
Activity variance = Actual selling and administrative expense - Flexible budget
Activity variance = $168,150 - $170,790
Activity variance = -$2,640
The activity variance for selling and administrative expense in December is negative, which means that the actual expense was less than what we would expect based on the flexible budget. This could be due to cost savings or efficiencies in the company's operations.
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Why will the number of suppliers in the tourism industry decrease, and how will this consolidation of suppliers take place
Answers
Answer:
In the current negative economic climate, suppliers in the tourism industry are likely to consolidate because many small suppliers do not have enough revenue to continue operating, and in such situation, they can be easily absorbed by larger, more solvent competitors.
Besides, the industry had been consolidating in the years prior to the current crisis. For example, Airbnb, with its innovative business model and global reach, had made many small suppliers go out of business in several cities of the world.