Answer:
Explanation:
In the given transaction, the amount is received in advance for performing the service, so the journal entry would be
Cash A/c Dr $3,500
To Unearned revenue $3,500
(Being amount is received in advance)
For recording the advance transactions, we have to debit the asset account i.e cash account and credit the liability account i.e. unearned revenue account.
The following journal entries are to be passed in the books of Moses Supply co. for the year.
<u>Explanation:</u>
date particulars and details debit credit
nov 1 Notes receivable 60000
cash 60000
Dec 11 Notes receiavble 3600
sales 3600
Dec 16 Notes receivable 12000
Accounst receivable 12000
Dec 31 Interest receivable 760
Interest revenue 760
<u>Interest calculation is as follows:</u>
Nov 1 Interest = $60000 multiply 7% multiply 2 by 12 = $700
Dec 11 Interest = $3600 multiply 8% multiply 20by 365 = $16
Dec 16 Interest = $12000 multiply 9% multiply 15 by 365 = $44
Total = $760
Answer:
The correct answer is letter "A": Part of both the performance measurement system and the performance reward system.
Explanation:
Budgets are estimates a company outlines at the beginning of a period to determine the expenditures that must be incurred during the operations of the firm for the whole year. Part of the managers' work is evaluated based on how close the actual expenses match the budgeted estimates.
In case the company's expenses are higher, investors may not consider the <em>performance </em>of the executives and the overall firm as appropriate. If the expenses are below the budget estimate at the productivity level desired, investors could be interested in maintaining or improving the current business process and being the <em>rewards </em>for managers higher.
Answer:
$7,000,000
Explanation:
Accounting for Non-Controlling Interest requires measurement of stock at Fair Value.
Total fair value of firm = Fair value of common stock + Fair value of preferred stock
= $62,000,000 + $8,000,000
= $70,000,000
90% of equity represent the extent of controlling interest in the firm. Thus, remaining 10% will be the value of non-controlling interest.
As already discussed, non controlling interest requires measurement at fair value:
Non-Controlling Interest = Total Fair Value x Percentage of Non-Controlling Interest
= $70,000,000 x 10%
= $7,000,000 (Answer)