Answer:
$150,000
Explanation:
Economic profit is accounting profit less implicit cost or opportunity cost.
Accounting profit = Total revenue - Total cost
Economic profit = Total revenue - Total cost - Opportunity cost
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. The opoortunty cost of the web designer is $50,000.
Revenue is $550,000
Total cost = $250,000 + $30,000 + $70,000 = $350,000
Economic profit = 550,000 - $350,000 - $50,000 = $150,000
I hope my answer helps you
Answer: True
Explanation:
Under Agency Law in relation to employment, the salesperson is acting as an agent of the owner of the store and as such is their representative. As their representative, it is assumed that whatever they are selling is from the Owner whom they represent and as such can be binding on the owner.
This is why the Agent must act in the best interest of the owner because the owner could be held negligent for the actions of their agents. For instance, a salesperson will not be sued for a faulty equipment that caused harm but the store can.
Given:
April 1 - <span>Griffith publishing company received $1,548 from Santa Fe, inc. for 36-month subscriptions.
</span><span>
1,548 / 36 months = 43 per month.
Assuming that the amount is paid in cash.
Debit Credit
April 1:
Cash 1,548
Unearned Revenue 1,548
April 30:
Unearned Revenue 43
Revenue Fees 43
May 31:
Unearned Revenue 43
Revenue Fees 43
June 30:
Unearned Revenue 43
Revenue Fees 43
</span>July 31
Unearned Revenue 43
Revenue Fees 43
August 31:
Unearned Revenue 43
Revenue Fees 43
September 30:
Unearned Revenue 43
Revenue Fees 4<span>3
</span>
October 31:
Unearned Revenue 43
Revenue Fees 43
November 30:
Unearned Revenue 43
Revenue Fees 43
December 31:
Unearned Revenue 43
Revenue Fees 4<span>3
</span>
Book Value of Unearned Revenue is: 1,548 - (43*9) = 1,548 - 387 = 1,161
Since it is a monthly subscription, the unearned revenue must always have an adjusting entry at the end of the month because Griffith company has already earned some of the prepaid fees.
Answer:
Depreciation Expense account is $4,700
Balance in the Accumulated Depreciation account is $9,400
Explanation:
Depreciation is used to determine how a value of a fixed asset decreases with time due to usage. Examples of assets that can be depreciated include equipment, buildings, vehicles and machinery. If the annual depreciation in this case is $4,700, at the end of the second year, depreciation expense would be $4,700. however, accumulated depreciation would be (4700 +4700) totaling to $9,400
Answer:
Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.
Explanation:
Financial reporting refers to the presentation and disclosure of financial information of an entity to the public, investors, lenders and other stakeholder.
Financial reporting is carried out by reporting financial statements (balance sheet, income statements), statement of cash flows and other relevant/necessary disclosures, notes as required by law or statute or which are essential for better comprehension of such financial information.
Such information helps lenders to know the financial health of the entity, helps investors to decide whether it would be beneficial to invest in the entity, assures government of the compliance of laws by the entity, etc.