Answer:
The ledger of Metlock, Inc.
March 31 Adjusting Entries
Sr. No Particulars Debit Credit
1 Depreciation Expense $1092
Accumulated Depreciation $ 1092
Depreciation for 3 months = $364*3= $ 1092
2. Unearned Rent Revenue 8060
Rent Revenue Earned 8060
Half of the unearned rent revenue was earned during the quarter.
3. Interest Expense $130
Interest Payable $ 130
Interest of $520 is accrued on the notes payable. For the quarter it will be
$ 520/4-=$ 130
4. Supplies Expense 2885
Supplies 2885
Supplies on hand total $1,105. Supplies were $ 3900. The amount of supplies used were $ 3900- $ 1015= $ 2885
5. Insurance Expense $1560
Prepaid Insurance $ 1560
Insurance expires at the rate of $520 per month. For the three months it would be $ 520* 3= $1560.
Answer:
The R.C.Willey furniture store has a sale for Memorial day weekend that if you purchase products that come over $499 a 60" TV can be purchased for only $300. This sales practice is known as<u> bundling.</u>
Explanation:
Here, the firm is selling two goods at a lower price, if the consumer has also brought a product, that is price tying, for it to be bundling, the firm would have made it mandatory to buy both the goods at a certain price.
Answer:
<em>1) Monthly payments:</em>
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<em>2) Balance in ten years:</em>
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<u><em /></u>
Explanation:
<u><em></em></u>
<u><em>1. What are the monthly payments?</em></u>
The formula to compute the monthly payment of a loan is:
Where:
- Payment is the monthly payment
- r is the monthly interes rate: 8% / 12 = 0.08/12
- n is the number of months: 12 × 30 = 360
- Loan = $190,000
Substitute and compute:
<u><em>2. What would the loan balance be in ten years?</em></u>
<u><em></em></u>
There is a formula to calculate the balance in any number of years:
![Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]](https://tex.z-dn.net/?f=Balance%3DLoan%281%2Br%29%5En-Payment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%5Cbigg%5D)
Substitute with n = 10 × 12 and compute:
![Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg]](https://tex.z-dn.net/?f=Balance%3D%5C%24190%2C000%281%2B%280.08%2F12%29%29%5E%7B%2810%5Ctimes%2012%29%7D-%5C%241%2C394.15%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B%280.08%2F12%29%29%5E%7B%2810%5Ctimes%2012%29%7D-1%7D%7B%280.08%2F12%29%7D%5Cbigg%5D)
Answer:
Differential analysis as at April 30
Make (Alternative 1) Buy (Alternative 2)
Purchase Price $0.00 $24.00
Direct materials $8.00 $0.00
Direct labor $12.00 $0.00
Variable Costs - Case related $3.00 $0.00
Total Cost $23.00 $24.00
Conclusion
Company should make carrying cases instead of purchasing as this is cheaper by $1.00
Explanation:
There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.
Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.
Choose the alternative with lower costs.
