Answer:
The correct answer is letter "B": legislation cannot repeal basic economic motives.
Explanation:
Government price controls are regulations imposed by the central government of a country to set limits on prices of certain goods or services because of a surplus, shortage or simply to maintain the demand and supply of those products at their equilibrium level.
However, the demand for some of those products could be unpredictable because individuals could react in opposite directions even if the government has set rules against consumers' favor. <em>Customers' motives might not be always repealed by legislation</em>.
1. Dr Merchandise inventory 25100
Cr Accounts payable 25100
(To record purchase of inventory on account)
2. Dr Merchandise inventory 530
Cr Cash 530
( To record freight cost )
3. No entry
4. Dr Accounts payable 3600
Cr Merchandise inventory 3600
( To record purchase return)
5. Dr Accounts payable ( 25100-3600) 21500
Cr Cash 21500
(To record paid the amount due).
Answer:
Explanation:
The total amount paid for the services rendered is $6,000 + $5,000= $11,000.
Although $6,000 was paid directly to him and $5,000 to a financial institution the attorney owes.
Different channels can be used to make payment for services and also at different times. For example payment could be requested as part cash and part bank check. Payment can also be made at various future times.
Regardless of the channels that were used all payments were in relation to the services provided by the attorney.
The fraud at healthsouth at the structural level of the company was more intense because checks and balances were eliminated and organizational culture was compromised
The HealthSouth fraud took place in an intriguing time of economic expansion and lax laws, which made accounting fraud considerably simpler. Investors and lenders were more concerned with revenue in the 1990s than they were with profitability. Growth was important when a company was asking for funding. CEOs were under pressure, including Scrushy, to maintain company growth and consistently above analyst predictions. Along with this increased demand for growth, there emerged an odd legal climate.
The HealthSouth CFOs (described as: filling "holes" in the balance sheet with "dirt") changed their earnings figures. The fraud went unnoticed until 2003, when Weston Smith, a former HealthSouth CFO, told federal authorities about it. It involved inappropriately capitalizing spending, overestimating insurance reimbursements, overvaluing fixed assets, and employing flawed reserve accounting.
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Answer:a The corporation can make a public issue of shares to obtain capital to make the purchase. ( B) The accountant will open a temporary account called the business purchase account and the vendor account to record the purchase
Explanation:
a. When a corporation want to purchase a existing business ,the purchase price may be paid either totally in cash or partly in cash and partly in shares or in some cases totally in shares. The method of payment is arranged between the corporation and the existing business. If the company makes a public issue of shares to raise funds for the purpose of acquisition of the business. A statement in the prospectus to issue the shares that the vendor will be paid either totally or partly in shares boost the investors confidence in the business because they see it as a sign that the vendor has faith in the future prospect of the business under the new ownership. The shares allotted as consideration for the purchase becomes part of the issued capital of the company.
b. The temporary account and the vendor account would include the following
1.Dr the business purchase account
Cr the vendor account
With the agreed purchase price,and the allotment of shares or debenture as part of the purchase price
2. Dr the asset, including Goodwill if any to their respective account,
Cr the total value of asset taken over in one amount to the business purchase account
3. Dr the total value of liabilities taken over in one amount to the business purchase account
Cr the liabilities to their respective account
4. Dr vendor account
Cr the corporation capital account both with the purchase price when paid
