The size of a loan and its issuance costs (as a percentage of the amount borrowed) are _______

On July 1, Year 1, Yellow Rose Corp. paid $25,000 cash for a machine and paid an additional 8% sales tax. On the same date, an e

Lina20 [59]

Answer:

Journal entries are given below

Explanation:

July 1, Year 1 (Yellow Rose Corp. purchased a machine)

DEBIT CREDIT

Machine $28,000

Cash $28,000

Working

Cost of machine = Purchase price + Sales tax + Installation

Cost of machine = $25,000 + $2,000 + $1,000

Cost of machine = $28,000

Depreciation for year 1 (October to December)

DEBIT CREDIT

Depreciation Expenses $1,300

Accumulated Depreciation $1,300

Working

Annual Depreciation expense = (Cost - salvage value) / useful life

Annual Depreciation expense = (28000 - 2000) / 5 = $5,200

Depreciation for 3 months

Depreciation = $5,200 x 3/12

Depreciation = $1300

Sale of the machine

DEBIT CREDIT

Cash $14,000

Loss on Sale $7,500

Accumulated Depreciation $6,500

Machinery $28,000

Workng

Gain/Loss on sale = Sale proceed - carrying value

Gain/Loss on sale = 14,000 - 21,500

Loss on sale = $7,500

Carrying value = Cost - Accumulated depreciation

Carrying value = 28,000 - 6500 = 21500

Accumulated depreciation = $1,300 + $5,200 = $6,500

7 0

2 years ago

According to research, a majority of adolescents' favorite computer games involve

Lelechka [254]

According to research, a majority of adolescents favorite computer games involve violence.
Computer games such as Quake II and Doom involves the illustration of extreme violence. The majority of the adolescents favorite the computer games that involve violence because violent games have proven to be so famous. Young people are already at risk for violent behavior because of the influence of computer games and media.

4 0

2 years ago

The Swiss Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direc

Georgia [21]

Answer and Explanation:

The computation of the equivalent units for direct material and conversion cost is shown below:

Physical units Direct Materials Conversion Cost

Beginning

Work in process

100% and 50% 250

Units Started 800

Total Units

Under process 1,050

Less : Ending

Work in process 150

Units Transferred

to TestingDepartment 900 900 900

Ending Work in process 150 150 112.50

(100% and 75%)

Equivalent units ofproduction 1,050 1,050 1,012.50

7 0

2 years ago

Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c

Lerok [7]

Answer:

Multibranding strategy

Explanation:

Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.

In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.

A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.

8 0

2 years ago

Read 2 more answers

Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the

Mila [183]

QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows:
I. Raise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical healthcare contributions

QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is a key public value outcome in every society.


QUESTION 3.
The two fiscal issues that are hyper-partisan are as follows:
I. Military defense spending.
II. Issues of taxes
- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view.

QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.

4 0

2 years ago

The size of a loan and its issuance costs​ (as a percentage of the amount​ borrowed) are​ ________.

The size of a loan and its issuance costs (as a percentage of the amount borrowed) are ________.