Theos trash is picked up at 6am every Friday morning. The noise of the garbage truck always
Question:
Theo’s trash is picked up at 6am every Friday morning. The noise of the garbage truck always wakes him up and deprives him of sleep. Theo is willing to pay up to $10 for the truck to come at 7am instead of 6am. The sanitation company schedules Theo’s pick-up at 6am because it is most cost-effective to do so. Coming to Theo’s later in the morning requires rerouting the trucks in a way that increases gasoline and labor costs. Coming to Theo’s house at 7am instead of 6am will increase the company’s costs by $6. a.
What is the economically efficient time for the garbage truck to come to Theo’s house: 6am or 7am? Explain. (Assume that Theo is the only person affected by the garbage truck’s timing.)
Suppose that the sanitation company has the right to pick up Theo’s trash whenever it wants. What do you predict will happen if Theo and the sanitation company attempt to negotiate a mutually beneficial compromise? Explain.
Suppose instead that Theo has the right to deny the garbage truck access to the house until 7am. What do you predict will happen if Theo and the sanitation company attempt to negotiate a mutually beneficial compromise? Explain.
Explain how your answers to parts a, b, and c relate to the Coase Theorem.
Intelligent Toys, Inc (“ITI") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 29 February 2020 is presented as follows: Intelligent Toys, Inc Trial Balance As at 29 February 2020 Account No. Account Title Debit Credit ($) ($) 201 Accounts Payable Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 280,000 112 450,000 496,800 380,000 156 Accumulated Depreciation - Motor Vehicle 443,112 113 Allowance for Doubtful Accounts 13,500 151 Building 6,480,000 101 Cash 667,680 291 Dividends Payable 80,000 153 Equipment 660,000 115 Interest Receivable 96,000 140 Long-term Investment 121 Merchandise Inventory 500,000 650,000 155 Motor Vehicle 555,000 114 Notes Receivable 1,800,000 131 Prepaid Insurance 320 Retained Earnings 12,000 1,384,808 241 Salaries Payable 70,200 311 Share Capital – Ordinary $1 par value, 5,000,000 shares authorized, 4,000,000 shares issued and 3,985,000 shares outstanding 4,000,000 312 Share Capital – Preference 4%, $100 par value, noncumulative, 50,000 shares authorized, 40,000 shares issued and outstanding 4,000,000 313 Ordinary 560,000 314 Share Premium – Preference 200,000 315 Share Premium – Treasury 6,000 132 Supplies 6,240 330 Treasury Shares (15,000 shares) 37,500 11,914,420 11,914,420 **Transactions in March and adjustment data are shown in separate email The information will be released via email on 9 November 2020, 18:00 ** The alternative treatment in Slide 18 of Lecture 4 powerpoints is not adopted by ITI. Instructions (The following is the procedures of the accounting cycle after analyzing the source documents for transactions taken place) Enter the March 1 balances in the ledger accounts. (for your own reference) (b) (a) Journalize the March transactions. Use the accounts provided in the chart of accounts on page 12. (c) Post to the ledger accounts. (for your own reference) (d) Prepare a trial balance at 31 March 2020. (for your own reference) (e) Journalize and post adjusting entries. (posting is for your own reference) (f) Prepare an adjusted trial balance. Prepare an income statement and a retained earnings statement for March and a (g) statement of financial position as at 31 March 2020. Requirements for submission (1) Input the Journal Entries required in part (b) with the Account No and Amount into blackboard. Please input the items required as shown in page 4 & 5. Please refer to the chart of accounts on page 12. (32 marks) (2) Input the Journal Entries required in part (e) with the Account No and Amount into blackboard. Please input the items required as shown in page 6. (22 marks) (3) Input the balance of each account of the trial balance required in part (f) into blackboard. Please input the items required as shown in page 7. (16 marks) (4) Input the figures of part (g) including the income statement and retained earnings statement for September and statement of financial position as at March 31 into blackboard. Please input the items required as shown in page 8, 9 & 10. (12 marks) The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Ambrose Limited, $93,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $400. The goods were collected by the shipping company on 1 March and arrived at ITI's warehouse on 4 March. 1(c) Sold 15,000 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlotte Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,000,000 as at 1 March. The purchase consideration included a $1,800,000 note receivable due from Charlotte Limited and the related interest receivable balance of $96,000, $94,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $80,000. 1(e) Sold remote control helicopters valued at $198,000 to Vincent Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $500. The goods were shipped on 1 March and arrived at the warehouse of Vincent Limited on 3 March. 2 A 10% share dividend was declared when the market value per share was $2.1. 3 Cash is received from Vincent Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of Vincent Limited on 3 March. 4 Sold kids ride on cars to Gavin Limited, $83,300, terms n/30, FOB shipping point. The appropriate party paid freight charges of $315. The goods were shipped on 4 March and arrived at the warehouse of Gavin Limited on 6 March. 5 The management determined that the amount due from a customer, Tommy Limited, $34,500 is uncollectible as the company has closed down. 6 Purchased supplies of $2,800 on account from Jimmy Printing and Stationery Limited. 7(a) Paid cash to acquired 20,000 shares of its own at $2.3 each. 7(b) Received credit memorandum of $1,200 from Ambrose Limited for goods purchased in March. 8 Granted Gavin Limited an allowance of $980 (original price) due to discrepancy in the color of the ride on cars. 9 Sold flying disc and toy swings to Action Limited, list price of $82,075 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid freight-charges of $640. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March. 10 Paid Ambrose Limited for the children laptop toys bought on 1 March and the amount of $140,000 on account for the purchase on 29 February. Purchases terms with Ambrose Limited in February was 2/10, n/30, FOB shipping point. Mar. 11 Paid $108,000 for salary up to 10th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. 12 Received payments from Gavin Limited, for the March sales. 13 Acquired $100,000 toy musical instruments by signing a 90-day, 5% notes payable. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $210,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 60-day notes from the customer to settle the outstanding balance. 17 Share dividends were distributed. 21 Paid all dividends declared previously. 25 Received from Tom Limited, $120,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2020 to 31 March 2021. 27 Delivered inflatable castle of $39,750 on consignment to Vincent Trading Limited. 28 Purchased $23,450 play mats from McMillan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2020. 29 A cash dividend was declared for preference shares and a cash dividend of $0.04 per share was declared for ordinary shares. 30 Received a check of $15,525 from the liquidator of Tony Limited. Tony Limited was closed down in December 2019 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of Tony Limited, as of then. The following information is available on 31 March 2020: (a) Electricity incurred for the month amounted to $4,800. (b) The employees receive a total salary of $27,000 for a five-day work week. All employees worked for the whole month of March. (c) (i)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 50 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2016. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January 2017. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10 % of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,800 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $3,000 of supplies and (e) $698,000 of merchandise inventory remained on hand at 31 March 2020. (f) The prepaid insurance was paid in last December covering a 12-month general insurance from January to December, 2020. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy. (h) Recognize interest expense for the month. (i) Recognize interest revenue for the month. Requirement 3 (106 points) 2 points for each item Adjusted Trial Balance as at 31 March 2020 Account Dr $ Cr $ No Accounts Payable Accounts Receivable_ Accumulated Depreciation – Building Accumulated Depreciation – Equipment Accumulated Depreciation – Motor vehicle Allowance for Doubtful Accounts Bad Debt Expense Building Cash Depreciation Expense – Building Depreciation Expense – Equipment Depreciation Expense – Motor Vehicle Dividends Payable Equipment Freight-in Freight-out Fuel Expense Gain on Disposal Insurance Expense Interest Expense Interest Payable Interest Receivable Item 173 Item 174 201 112 152 Item 175 154 Item 176 156 Item 177 113 Item 178 Item 179 Item 180 611 151 101 Item 181 Item 182 Item 183 711 712 713 Item 184 291 Item 185 153 Item 186 514 Item 187 612 Item 188 613 Item 189 820 Item 190 615 Item 191 Item 192 Item 193 Item 194 Item 195 631 221 115 415 Interest Revenue Land Long-term Investment Loss on Disposal Merchandise Inventory Miscellane ous Expense 150 Item 196 140 Item 197 620 Item 198 121 Item 199 630 Item 200 155 231 114 Motor Vehicle Item 201 Item 202 Notes Payable Notes Receivable Item 203 Ordinary Share Dividends Distributable Prepaid Insurance 292 Item 204 Item 205 Item 206 Item 207 Item 208 131 513 512 Purchase Discounts Purchase Returns and Allowances 511 Purchases Retained Earnings Salaries Expense Salaries Payable Item 209 Item 210 Item 211 Item 212 320 616 241 411 Sales Returns and Allowances 410 Sales Revenue Item 213 Share Capital – Ordinary Share Capital – Preference Share Premium – Ordinary Share Premium – Preference Share Premium – Treasury Supplies Supplies Expense Treasury Shares 311 Item 214 Item 215 Item 216 Item 217 312 313 314 315 Item 218 132 |618 Item 219 Item 220 330 Item 221 Item 222 Item 223 | 281 Unearned Rent Revenue 619 Utilities Expense Item 224 Item 225 7 Requirement 4 (78 points) 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2020 £ Net Sales Item 226 Cost of goods purchased Item 227 Cost of goods available for sale Item 228 Cost of Goods Sold Item 229 Gross Profit Item 230 Total operation expense Item 231 Operating Profit Item 232 Net Income Item 233 8 |Intelligent Toys, Inc. Retained Eamings Statement For the month ended 31 March 2020 £ Ending retained Earnings (3 points) Item 234 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2020 Property, Plant and Equipment Current Liabilities Sub-total Item 235 Sub-total Item 239 Long Term Investments Item 236 Equity Current Assets Sub-total Item 237 Sub-total Item 240 Total Assets Item 238 Total Liabilities & Equity Item 241 10 Chart of Accounts Account No Account Names Account No Account Names Merchandise Inventory Miscellaneous Expense 201 Accounts Payable 121 112 Accounts Receivable 630 Accumulated Depreciation– Building Accumulated Depreciation – Equipment Accumulated Depreciation - Motor vehicle 152 155 Motor Vehicle 154 231 Notes Payable 156 114 Notes Receiva ble 113 Allowance for Doubtful Accounts 292 Ordinary Share Dividends Distributable 611 Bad Debt Expense 131 Prepaid Insurance Building Cash 151 513 Purchase Discounts 101 512 Purchase Returns and Allowances Depreciation Expense – Building Depreciation Expense - Equipment 711 511 Purchases Retained Earnings Salaries Payable Salaries Expense 712 320 Depreciation Expense - Motor Vehicle Dividends Payable 713 241 291 616 153 Sales Revenue Equipment Freight-in Freight-out Fuel Expense Gain on Disposal Insurance Expense 410 514 411 Sales Returns and Allowances Share Capital – Ordinary Share Capital – Preference Share Premium – Ordinary 612 311 613 312 820 313 615 314 Share Premium – F Interest Expense Interest Payable 631 315 Share Premium - Treasury Supplies Supplies Expense Treasury Shares 221 132 115 Interest Receivable 618 415 Interest Revenue 330 150 Land 281 Unearned Rent Revenue Long-term Investment Loss on Disposal 140 619 Utilities Expense 620 12 Intelligent Toys, Inc (“ITI") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 29 February 2020 is presented as follows: Intelligent Toys, Inc Trial Balance As at 29 February 2020 Account No. Account Title Debit Credit ($) ($) 201 Accounts Payable Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 280,000 112 450,000 496,800 380,000 156 Accumulated Depreciation - Motor Vehicle 443,112 113 Allowance for Doubtful Accounts 13,500 151 Building 6,480,000 101 Cash 667,680 291 Dividends Payable 80,000 153 Equipment 660,000 115 Interest Receivable 96,000 140 Long-term Investment 121 Merchandise Inventory 500,000 650,000 155 Motor Vehicle 555,000 114 Notes Receivable 1,800,000 131 Prepaid Insurance 320 Retained Earnings 12,000 1,384,808 241 Salaries Payable 70,200 311 Share Capital – Ordinary $1 par value, 5,000,000 shares authorized, 4,000,000 shares issued and 3,985,000 shares outstanding 4,000,000 312 Share Capital – Preference 4%, $100 par value, noncumulative, 50,000 shares authorized, 40,000 shares issued and outstanding 4,000,000 313 Ordinary 560,000 314 Share Premium – Preference 200,000 315 Share Premium – Treasury 6,000 132 Supplies 6,240 330 Treasury Shares (15,000 shares) 37,500 11,914,420 11,914,420 **Transactions in March and adjustment data are shown in separate email The information will be released via email on 9 November 2020, 18:00 ** The alternative treatment in Slide 18 of Lecture 4 powerpoints is not adopted by ITI. Instructions (The following is the procedures of the accounting cycle after analyzing the source documents for transactions taken place) Enter the March 1 balances in the ledger accounts. (for your own reference) (b) (a) Journalize the March transactions. Use the accounts provided in the chart of accounts on page 12. (c) Post to the ledger accounts. (for your own reference) (d) Prepare a trial balance at 31 March 2020. (for your own reference) (e) Journalize and post adjusting entries. (posting is for your own reference) (f) Prepare an adjusted trial balance. Prepare an income statement and a retained earnings statement for March and a (g) statement of financial position as at 31 March 2020. Requirements for submission (1) Input the Journal Entries required in part (b) with the Account No and Amount into blackboard. Please input the items required as shown in page 4 & 5. Please refer to the chart of accounts on page 12. (32 marks) (2) Input the Journal Entries required in part (e) with the Account No and Amount into blackboard. Please input the items required as shown in page 6. (22 marks) (3) Input the balance of each account of the trial balance required in part (f) into blackboard. Please input the items required as shown in page 7. (16 marks) (4) Input the figures of part (g) including the income statement and retained earnings statement for September and statement of financial position as at March 31 into blackboard. Please input the items required as shown in page 8, 9 & 10. (12 marks) The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Ambrose Limited, $93,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $400. The goods were collected by the shipping company on 1 March and arrived at ITI's warehouse on 4 March. 1(c) Sold 15,000 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlotte Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,000,000 as at 1 March. The purchase consideration included a $1,800,000 note receivable due from Charlotte Limited and the related interest receivable balance of $96,000, $94,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $80,000. 1(e) Sold remote control helicopters valued at $198,000 to Vincent Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $500. The goods were shipped on 1 March and arrived at the warehouse of Vincent Limited on 3 March. 2 A 10% share dividend was declared when the market value per share was $2.1. 3 Cash is received from Vincent Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of Vincent Limited on 3 March. 4 Sold kids ride on cars to Gavin Limited, $83,300, terms n/30, FOB shipping point. The appropriate party paid freight charges of $315. The goods were shipped on 4 March and arrived at the warehouse of Gavin Limited on 6 March. 5 The management determined that the amount due from a customer, Tommy Limited, $34,500 is uncollectible as the company has closed down. 6 Purchased supplies of $2,800 on account from Jimmy Printing and Stationery Limited. 7(a) Paid cash to acquired 20,000 shares of its own at $2.3 each. 7(b) Received credit memorandum of $1,200 from Ambrose Limited for goods purchased in March. 8 Granted Gavin Limited an allowance of $980 (original price) due to discrepancy in the color of the ride on cars. 9 Sold flying disc and toy swings to Action Limited, list price of $82,075 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid freight-charges of $640. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March. 10 Paid Ambrose Limited for the children laptop toys bought on 1 March and the amount of $140,000 on account for the purchase on 29 February. Purchases terms with Ambrose Limited in February was 2/10, n/30, FOB shipping point. Mar. 11 Paid $108,000 for salary up to 10th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. 12 Received payments from Gavin Limited, for the March sales. 13 Acquired $100,000 toy musical instruments by signing a 90-day, 5% notes payable. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $210,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 60-day notes from the customer to settle the outstanding balance. 17 Share dividends were distributed. 21 Paid all dividends declared previously. 25 Received from Tom Limited, $120,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2020 to 31 March 2021. 27 Delivered inflatable castle of $39,750 on consignment to Vincent Trading Limited. 28 Purchased $23,450 play mats from McMillan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2020. 29 A cash dividend was declared for preference shares and a cash dividend of $0.04 per share was declared for ordinary shares. 30 Received a check of $15,525 from the liquidator of Tony Limited. Tony Limited was closed down in December 2019 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of Tony Limited, as of then. The following information is available on 31 March 2020: (a) Electricity incurred for the month amounted to $4,800. (b) The employees receive a total salary of $27,000 for a five-day work week. All employees worked for the whole month of March. (c) (i)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 50 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2016. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January 2017. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10 % of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,800 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $3,000 of supplies and (e) $698,000 of merchandise inventory remained on hand at 31 March 2020. (f) The prepaid insurance was paid in last December covering a 12-month general insurance from January to December, 2020. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy. (h) Recognize interest expense for the month. (i) Recognize interest revenue for the month. Requirement 3 (106 points) 2 points for each item Adjusted Trial Balance as at 31 March 2020 Account Dr $ Cr $ No Accounts Payable Accounts Receivable_ Accumulated Depreciation – Building Accumulated Depreciation – Equipment Accumulated Depreciation – Motor vehicle Allowance for Doubtful Accounts Bad Debt Expense Building Cash Depreciation Expense – Building Depreciation Expense – Equipment Depreciation Expense – Motor Vehicle Dividends Payable Equipment Freight-in Freight-out Fuel Expense Gain on Disposal Insurance Expense Interest Expense Interest Payable Interest Receivable Item 173 Item 174 201 112 152 Item 175 154 Item 176 156 Item 177 113 Item 178 Item 179 Item 180 611 151 101 Item 181 Item 182 Item 183 711 712 713 Item 184 291 Item 185 153 Item 186 514 Item 187 612 Item 188 613 Item 189 820 Item 190 615 Item 191 Item 192 Item 193 Item 194 Item 195 631 221 115 415 Interest Revenue Land Long-term Investment Loss on Disposal Merchandise Inventory Miscellane ous Expense 150 Item 196 140 Item 197 620 Item 198 121 Item 199 630 Item 200 155 231 114 Motor Vehicle Item 201 Item 202 Notes Payable Notes Receivable Item 203 Ordinary Share Dividends Distributable Prepaid Insurance 292 Item 204 Item 205 Item 206 Item 207 Item 208 131 513 512 Purchase Discounts Purchase Returns and Allowances 511 Purchases Retained Earnings Salaries Expense Salaries Payable Item 209 Item 210 Item 211 Item 212 320 616 241 411 Sales Returns and Allowances 410 Sales Revenue Item 213 Share Capital – Ordinary Share Capital – Preference Share Premium – Ordinary Share Premium – Preference Share Premium – Treasury Supplies Supplies Expense Treasury Shares 311 Item 214 Item 215 Item 216 Item 217 312 313 314 315 Item 218 132 |618 Item 219 Item 220 330 Item 221 Item 222 Item 223 | 281 Unearned Rent Revenue 619 Utilities Expense Item 224 Item 225 7 Requirement 4 (78 points) 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2020 £ Net Sales Item 226 Cost of goods purchased Item 227 Cost of goods available for sale Item 228 Cost of Goods Sold Item 229 Gross Profit Item 230 Total operation expense Item 231 Operating Profit Item 232 Net Income Item 233 8 |Intelligent Toys, Inc. Retained Eamings Statement For the month ended 31 March 2020 £ Ending retained Earnings (3 points) Item 234 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2020 Property, Plant and Equipment Current Liabilities Sub-total Item 235 Sub-total Item 239 Long Term Investments Item 236 Equity Current Assets Sub-total Item 237 Sub-total Item 240 Total Assets Item 238 Total Liabilities & Equity Item 241 10 Chart of Accounts Account No Account Names Account No Account Names Merchandise Inventory Miscellaneous Expense 201 Accounts Payable 121 112 Accounts Receivable 630 Accumulated Depreciation– Building Accumulated Depreciation – Equipment Accumulated Depreciation - Motor vehicle 152 155 Motor Vehicle 154 231 Notes Payable 156 114 Notes Receiva ble 113 Allowance for Doubtful Accounts 292 Ordinary Share Dividends Distributable 611 Bad Debt Expense 131 Prepaid Insurance Building Cash 151 513 Purchase Discounts 101 512 Purchase Returns and Allowances Depreciation Expense – Building Depreciation Expense - Equipment 711 511 Purchases Retained Earnings Salaries Payable Salaries Expense 712 320 Depreciation Expense - Motor Vehicle Dividends Payable 713 241 291 616 153 Sales Revenue Equipment Freight-in Freight-out Fuel Expense Gain on Disposal Insurance Expense 410 514 411 Sales Returns and Allowances Share Capital – Ordinary Share Capital – Preference Share Premium – Ordinary 612 311 613 312 820 313 615 314 Share Premium – F Interest Expense Interest Payable 631 315 Share Premium - Treasury Supplies Supplies Expense Treasury Shares 221 132 115 Interest Receivable 618 415 Interest Revenue 330 150 Land 281 Unearned Rent Revenue Long-term Investment Loss on Disposal 140 619 Utilities Expense 620 12
Expert Answer:
Answer a The economically efficient time for the garbage truck to come to Theos house is 6am This is because the companys costs will be 6 more if they come at 7am b If Theo and the sanitation company ... View the full answer
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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