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4 years ago

Q 1.1: An owner who wants to have limited liability should form which type of business enterprise?

Business

1 answer:

ycow [4]4 years ago

6 0

Answer:

A corporation

Explanation:

A business is an agency–typically a group of individuals or a firm–allowed by the government to operate as a single body (a legal entity) and recognized as being for other functions of law.

Early constituted institutions were created by charter (i.e. through an arbitrary act issued by a sovereign or enacted by a statute or house of commons).

Corporations come in various forms but are typically separated by the statute of authority in which they are subcontracted on the grounds of two dimensions: that they are willing to issue securities or if they are founded to turn a profit.

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During its first year of operations, Novak Corp. Had these transactions pertaining to its common stock. Jan. 10 Issued 26,000 sh

bonufazy [111]

The journal entries to record the common stock transactions under the two scenarios are as follows:

a) Assuming that the common stock has a par value of $4 per share:

Jan. 10 Debit Cash $104,000

Common Stock $104,000

July 1 Debit Cash $495,000

Common Stock $220,000

Additional Paid-in Capital $275,000

b) Assuming that the common stock is no-par with a stated value of $3 per share

Jan. 10 Cash $104,000 Common Stock $78,000 Additional Paid-in Capital $26,000

July 1 Cash $495,000 Common Stock $165,000 Additional Paid-in Capital $330,000

<h3>What is the difference between par value and stated value?</h3>

There is <u>no major difference</u> between the par value and the stated value of the common stock, except as follows.

While the stated value is assigned when there is no par value for accounting purposes, the par value is assigned when the shares are authorized for issuance.

The two function as the face value of the shares which can be compared to the market value to discover if there is additional paid-in capital or not.

<h3>Data and Calculations:</h3>

a) Jan. 10 Cash $104,000 Common Stock $104,000

July 1 Cash $495,000 Common Stock $220,000 Additional Paid-in Capital $275,000

b) Jan. 10 Cash $104,000 Common Stock $78,000 Additional Paid-in Capital $26,000

July 1 Cash $495,000 Common Stock $165,000 Additional Paid-in Capital $330,000

Learn more about recording stock issuance transactions at brainly.com/question/17201601

7 0

2 years ago

Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol

erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales 20,000 X $216 = $4,320,000

Less: Cost of Goods Sold (Note 1) =($1,240,000)

Gross Margin = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense = ($560,000)

(Note 2)

Net Income = $2,520,000

Note:

Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales 20,000 X $216 = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000 = ($400,000)

Direct Labor $28 X 20,000 = ($560,000)

Variable Overhead $6 X 20,000 = ($120,000)

Variable Selling Expense $18 X 20,000 = ($360,000)

Contribution Margin = $2,880,000

Less: Fixed Costs

Fixed Overhead = ($160,000)

Fixed Selling & Administrative = ($200,000)

Net Income = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0

4 years ago

Thrill Rides is considering adding a new roller coaster to its amusement park. The addition is expected to increase its overall

zepelin [54]

Answer:

C. ticket sales for the new coaster.

Explanation:

In the case when the sales is reduced for the boat rise so the new rise would decrease the sales of the boat ride.

in the case when the food cost would be increase so if the sales of the food rises so automatically the food cost would rise

In the case when there is an extra sales for existing coaster, the same is mentioned in the given case

Therefore the option c is correct

4 0

3 years ago

Doing the right task is known in management as what

Tems11 [23]

Answer:

Doing the right task is known in management as performance.

Explanation:

Management ensures that the right tasks are performed by coordinating the various activities that help it to achieve goals. It also plans the right tasks to be carried out in order to achieve set goals and objectives. In doing all these, it also considers the cost and benefit to be incurred and derived respectively from executing its responsibilities. Management is always interested in minimizing costs while maximizing benefits. Management is also concerned with efficiency, by which it minimizes the wastage of resources (such as time, money, and efforts) and ensures optimum utilization of all its resources.

3 0

3 years ago

For purposes of determining current E&P, which of the following items cannot be deducted in the year incurred? A. dividend

Bogdan [553]

Answer:

A. dividendsminus−received deduction.

Explanation:

This allows companies to avoid mostly third taxes on the same earnings.

It is explained to be a federal tax deduction in the U.S. that is given to certain corporations that get dividends from related entities. The amount of the dividend that a company can deduct from its income tax is tied to how much ownership the company has in the dividend-paying company. However, there are criteria that must be met in order to qualify for a DRD.

The dividends received deduction allows a company that receives a dividend from another company to deduct that dividend from its income and reduce its income tax accordingly.

7 0

3 years ago