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2 years ago

Matt co. is the lessor in connection with an operating lease. matt co. would record:

1 answer:

6 0

Matt co. is the lessor in connection with an operating lease. matt co. would record a depreciation expense. The lessor records it as a depceciation expense becuase they are using a stright-line lease as a source of revenue. As the operation lease declines, it will keep showing as a depreciation on their balance sheets.

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On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of

Anuta_ua [19.1K]

Answer:

Explanation:

The journal entry is shown below:

Accumulated depreciation - machine A/c Dr $28,000

Loss on disposal of machine A/c $1,000

To Cash $1,000

To Machinery A/c $28,000

(Being the disposal of machinery is recorded)

For disposal of machinery, we debited the accumulated depreciation, loss on disposal of machine and credited the cash account and machinery account

6 0

1 year ago

Alex and bailey opened a dance studio together as general partners. they each invested $10,000 of their personal savings. after

Ivahew [28]

Since Alex and Bailey are partners and they will be shutting down the partnership. the debts should be settled by both. they will have to sacrifice their personal assets in doing so

7 0

2 years ago

The Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of $500,000, to the new arena

Natasha_Volkova [10]

Answer:

The required cash flow to earn 15% per year is $ 149,157.8

Now, If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible/advisable.

Explanation:

Solution

Given that:

Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of = $500,000

The investment to be made will result in a ROR = 15%

Expected revenue = between $138,000 and $165,000

Now,

The Computation of Required Cash flow per year is stated as follows:

= Initial Investment / PVAF (r%, n )

= $ 500,000 / PVAF (15%, 5)

= $ 500,000 / 3.3522

= $ 149,157.8

Thus,

The required flow of cash to earn 15% per year is $ 149,157.8

If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible.

7 0

2 years ago

Q 19.22: Portland and Hadley operate in the same industry. Portland's sales, variable costs, and fixed costs are $1,000,000, $70

vladimir1956 [14]

Answer:

Go up or down by the same amount as Portland’s because both companies have equal net income

Explanation:

Here are the options to this question :

A: Go up twice as much as Hadley’s, but go down only half as much as Portland’s.

B: Go up or down twice as much as Portland’s.

C: Go up or down by the same amount as Portland’s because both companies have equal net income.

D: Go up or down half as much as Portland’s.

Income = Revenue - total costs

total costs = fixed costs + variable cost

For Portland

$1,000,000 - ($700,000 + $100,000) = $200,000

For Hadley :

$1,000,000 - ($400,000 + $400,000) = $200,000

If each company experiences an equal increase or decrease in sales, Hadley's income will increase and decrease as much as Portland's because both companies have equal net income

6 0

2 years ago

Why can the big candy makers produce candy that is less expensive per price?

cricket20 [7]

Bc a lot of people buy their products, so they have enough money to make a profit even if they sell it at a lower cost.

8 0

2 years ago