Which best describes the role of financial planning?

Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its bu

dybincka [34]

Answer and Explanation:

The Journal entries are shown below:-

Jan 1

Equipment Dr, $300,600 ($287,600 + $11,500 + $1,500)

To Cash $300,600

(Being equipment is recorded)

Jan 3

Equipment Dr, $4,800

To Cash $4,800

(Being equipment is recorded)

Dec 31

Depreciation expenses-equipment Dr, $70,850

($300,600 + $4,800 - $20,600 - $1,400) ÷ 4

To Accumulated depreciation-equiment $70,850

(Being depreciation expense is recorded)

Year 2018

Jan 1

Equiment Dr, $5,400

To Cash $5,400

(Being equipment is recorded)

Feb 17

Repair expenses Dr, $820

To Cash $820

(Being repair expense is recorded)

Dec 31

Depreciation expenses-equipment Dr, $43,590

To Accumulated depreciation-equiment $43,590

(Being depreciation expense is recorded)

For Computing the Depreciation year 2018

Particulars Amount

Jan 1 2017 Cost of loader ($287,600 + $11,500 + $1,500) $300,600

Add cost of air conditioning installation on

Jan 3 2017 $4,800

Book value of depreciation for year 2017 $305,400

Less: Depriciation of year 2017

($305,400 - $20,600 - $1,400) ÷ 4 $70,850

After depreciation the book value for year 2017 $234,550

Add: Cost to overhaul the loader's engine $5,400

Before depreciation the book value of 2018 $239,950

Depreciation of year 2018

($239,950 - $22,000) ÷ (4 - 2 + 1) $43,590

6 0

2 years ago

Any information an Internet user submits on an unsecured, and potentially a variety of secured Web sites, is subject to later __

Mnenie [13.5K]

Any information an Internet user submits on an unsecured, and potentially a variety of secured Web sites, is subject to later data mining ,fee assessment ,and rumor and innuendo. So the answer would be all of the above since these the web sites can later subject to all of these.

6 0

1 year ago

Read 2 more answers

During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for J

igor_vitrenko [27]

Answer:

$17.50

Explanation:

Given that,

Direct labor hours = 7,000

Standard cost = $20 per hour

Direct Labor Rate Variance = $17,500 Favorable

(Standard Rate - Actual Rate) × Actual Hours = $17,500 Favorable

(20 - Actual Rate) × 7,000 = $17,500 Favorable

140,000 - 7,000 Actual Rate = $17,500 Favorable

Therefore,

7,000 Actual rate = (140,000 - $17,500)

Actual rate = 122,500 ÷ 7,000

= $17.50

8 0

1 year ago

A bakery famous for its cupcakes opens its doors at 9 a.m. and allows each customer to purchase up to 2 cupcakes until the day's

blondinia [14]

Answer:

The statements about the market that are true are:

1) The cupcakes are being sold below their equilibrium price. This is true because we can see there exists excess demand which won't exist at the equilibrium price.

3) The customers who receive cupcakes are the customers with the highest willingness to pay for cupcakes. This is why they are standing in the queue even before the bakery opens.

4) The bakery is not using price as the only means if allocating cupcakes to its customers. It is also using time as a factor as only those receive cupcakes who come early.

(2) and (4) are false because they are maximized only at the equilibrium level.

6 0

1 year ago

Arts and Crafts Inc. will pay a dividend of $5 per share in 1 year. It sells at $50 a share, and firms in the same industry prov

Illusion [34]

Answer: 12.6 %

Explanation: The rate of growth that a company expects to maintain for a long term is called sustainable growth rate. It is denoted by G. Sustainable

growth rate helps the analysts to determine at what stage the company is in its life cycle.

.

FORMULA :-

GROWTH = Retention ratio * return on equity

= ( 1 - Dividend payout ratio) * return on equity

$= (1-\frac{5}{50} \%) * 14 \%$

= 0.9 * 0.14

= 12.6 %

5 0

1 year ago