The number of minorities in the workforce is?

Young company is involved in a lawsuit. The liability which could arise as a result of this lawsuit should be recorded on the bo

MatroZZZ [7]

Answer:

Correct option is <u>Probable and the amount can be reasonably estimated. </u>

Explanation:

As per accounting standards on Contingent liabilities, any liability which is likely to be incurred and which can be estimated effectively and reliably, shall be recorded in the books.

If it is probable but cannot be estimated, then a journal entry may not be recorded, but a foot note may be made.

If contingent liability is only possible (but not probable) only a foot note is required.

If contingent liability has remote possibility of occurrence, then neither an entry to record the liability nor a footnote is required.

5 0

3 years ago

Joe Keho and Mike McLain share income on a 6:4 basis. They have capital balances of $90,000 and $70,000, respectively, when Lind

lions [1.4K]

Answer:

A.

Joe’s Capital (existing partner) = $90,000

Mike’s Capital (existing partner) = $70,000

Profit-sharing ratio = 6:4

Admission of Linda (new partner) with bonus to existing partners:

$100,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $100,000 / 25% = $400,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $100,000 = $260,000

Linda’s Capital in new partnership = 25% * $260,000 = $65,000

However, Linda is contributing $100,000

So, bonus accruing to existing partners = $100,000 - $65,000 = $35,000

Bonus to be split in profit sharing ratio

Bonus accruing to Joe = $35,000 * 6/10 = $21,000

Bonus accruing to Mike = $35,000 * 4/10 = $14,000

Joe'sCapital

$21,000

Mike'sCapital

$14,000

Lindia's Capital

$65,000

b. Admission of Linda (new partner) with bonus to the new partner:

$36,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $36,000 / 25% = $144,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $36,000 = $196,000

Linda’s Capital in new partnership = $196,000 * 25% = $49,000

However, contribution by Linda= $36,000

So, bonus accruing to Linda = $49,000 - $36,000 = $13,000

Joe’s share in bonus to Linda = $13,000 * 6/10 = $7,800

Mike’s share = $13,000 * 4/10 = $5,200

Joe'sCapital

$7,800

Mike'sCapital

$5,200

Lindia's Capital

$49,000

6 0

3 years ago

A product has a demand of 4000 units per year. Ordering cost is $20 per order, and holding cost is $4 per unit per year. The EOQ

MrRissso [65]

Answer:

the Annual inventory cost is $800.

Explanation:

The computation of the total annual inventory cost is given below:

Demand, D = 4000

Order cost, S = $ 20

Holding cost, H = $ 4

So,

EOQ = sqrt(2 ×D × S ÷ H)

= sqrt(2 × 4000 × 20 ÷ 4)

= 200

Now

Annual inventory cost = Annual setup cost + Annual holding cost

= (D ÷ Q × S) + (Q ÷ 2 × H)

= (4000 ÷ 200 × 20) + (200 ÷ 2 × 4)

= 400 + 400

= $800

hence, the Annual inventory cost is $800.

4 0

3 years ago

Question in the picture

svetoff [14.1K]

Hope u get your answer!

8 0

3 years ago

Read 2 more answers

A company has already incurred $5,000 of costs in producing 6,400 units of product xy. product xy can be sold as is for $33 per

timurjin [86]

The company should sell product xy as it is and should not process it further.

Given:
Original Incurred cost of $5,000
No. of units is 6,400
Price per unit is $33

Processed product
No. of units is 6,400
Costs for further processing is $8/unit
New price per unit is $39

First, know the total costs
Original: $5,000
Processed: 6,400 x $8 = $51,200

Next, find the sales revenue for the original and processed product
Original: $33 x 6,400 = $211,200
Processed: $39 x 6,400 = $249,600

Then, get the net profit for the original and processed product
Original: $211,200 - $5,000 = $206,200
Processed: $249,600 - $51,200 = $198,400

With the data provided, you can find out that the net profit is higher on the original/unprocessed product compared to the processed product even if the selling price and revenue is much higher. <span> </span>

8 0

3 years ago