Answer and Explanation:
The two adjusting entries are as follows:
On May 31
Rent expense ($1,200,000 ÷ 5 months) $240,000
To Prepaid rent $240,000
(Being rent expense is recorded)
Here the rent expense is debited as it increased the expenses and credited the prepaid rent as it decreased the assets
On May 31
Unearned rent revenue Dr $148,800
To Ticket revenue $148,800
(Being unearned revenue is recorded)
Here the unearned rent revenue is debited as it decreased the liability and credited the ticket revenue as it increased the revenue
Answer:
$13,296
Explanation:
Federal unemployment tax rate = 0.8% of 96,000 = 768
State unemployement tax rate = 5.4% of 96,000 = 5,184
Social security tax rate+medicare tax rate = 6.2%+1.45% = 7.65%
7.65% of 96,000 = 7,344
So total tax expense = 768+5,184+7,344 = $13,296
So answer is $13,296
The answer is marginal revenue (MR) curve above $22.
Explanation:
Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.
Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.
Economic profit = account profit = Opportunity profit
Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.
Answer:
Option (B) is correct.
Explanation:
Given that,
Selling price of a product = $140 per textbook
Variable expenses = $25 per book
Books sold per year = 6,000 books (It is the break even point)
The break even point indicates that there is no profit or loss incurred at the sales.
This means that the sales revenue is equal to the total cost incurred to produced these goods.
Sales per unit - Variable cost per unit - Fixed costs per unit = 0
$140 - $25 - Fixed costs = 0
$115 = Fixed costs per unit
Therefore, the total amount of fixed cost is calculated as follows:
= Fixed cost per unit × Number of books sold
= $115 × 6,000
= $690,000
Answer:
The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero
Break Even sales for Company wide = $378,000
Break Even Value for Chicago is $111,429
And Break Even Value for Minneapolis is $120,000
The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.
Explanation:
