Answer:
a) Priscilla Wescott's
Cash budget
Months
Sept. Oct. Nov. Dec.
beginning balance 8,220 3,220 3,330 3,340
football tickets -110
other entertainment -290 -290 -290 -290
semester tuition -4,400
rent -400 -400 -400 -400
food -220 -220 -220 -220
apartment deposit -600 600
part time jobs earnings 1,020 1,020 1,020 1,020
ending balance 3,220 3,330 3,340 4,150
b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.
c) The spring semester tuition costs $4,400 and she will only have $4,150, that means she will be $250 short.
Answer: Opportunity cost
Explanation:
A. Opportunity cost can be defined as the next best alternative foregone , it is the cost of profit the business looses while choosing one alternative over other.
B. Fixed cost are those cost that do not change with the level of output produced in the firm.
C. In simple words the direct costs a business pay to the outsiders for running its operations is called explicit cost.
D. Total revenue is the amount of income a company has before deducting its expenses occurred to earn that income.
So from the above explanations we can conclude that value of a business owner's time is an example of opportunity cost.
Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.
Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.
Xena's asset basis include;
Cash = $20,000
Land basis = $40,000
Inventory basis = $30,000
Equipment basis = $0
Therefore Xena's basis in the partnership interest :
$(20,000 + 40,000 + 30,000 + 0) = $90,000
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.
Answer:
Dr. Office Supplies Expense $900
Cr. Office supplies $900
Explanation:
At the end of the period office supplies account requires an adjusting entry of the office supplies used during the period. It can be calculated as follow
Ending balance of Office supplies = Beginning balance of Office supplies + Purchases during the period - office supplies expense during the period
$1,200 = $1,100 + $1,000 - office supplies expense during the period
$1,200 = $2,100 - office supplies expense during the period
Office supplies expense during the period = $2,100 - $1,200
Office supplies expense during the period = $900
Journal Entry will be debited to office supplies expense account and credit to office supplies inventory account, which will increase the expenses and decrease the inventory.
