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4 years ago

A contract tells an organization how it must act and the consequences for failing to act properly.

1 answer:

6 0

<h2>Yes the statement is True. A contract tells an organization how must act and the consequences for failing to act properly.</h2>

Explanation:

It is true that a contract is an agreement which is stating rules and regulation and also the consequences which the company has to face if the rules are violated.

A contract,

is an legal agreement
is signed for specific period
contains rules
consists of benefits which the company will get
also contains terms & conditions which might change from time to time

should be signed by company as well as the party
should even be signed by the witness of both the side

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At the beginning of the year, Bryers Incorporated reports inventory of $6,200. During the year, the company purchases additional

Nana76 [90]

Answer:

Cost of Goods Sold = $19200

Explanation:

The cost of goods sold or COGS is the cost of inventory that the business has sold for the period. The cost of goods sold can be calculated as follows,

Cost of Goods sold = Opening Inventory + Purchases for the year - Closing Inventory

Cost of Goods Sold = 6200 + 21200 - 8200

Cost of Goods Sold = $19200

8 0

3 years ago

For an oil and gas limited partnership (LP), allowances in the form of deductions are allowed by the IRS to be taken to compensa

Triss [41]

Answer:

The allowance can be taken based on:

a reduction (production) of the oil and gas reserves.

Explanation:

A limited partnership's allowance for depletion is a special form of depreciation used to account for the gradual reduction in the value of natural resources based on their usage or consumption. There are two methods for recognizing depletion of natural resources. They are the cost depletion method, which is based on usage, and the percentage depletion method, which is a percentage of gross earnings. Then, depletion is different from depreciation, in that depreciation is for tangible assets, while depletion is for natural assets.

3 0

3 years ago

Christie and Jergens formed a partnership with capital contributions of $390,000 and $490,000, respectively. Their partnership a

xxMikexx [17]

Answer:

Christie 's share = $ 37759.09

Jergens Share = $ 47,441

Explanation:

Partner's Profit share are calculated after the deduction of salary or any other interest incomes.

Profit for the current year = $ 163,000

Christie' s Salary $ 69,000

Christie Interest Income $ 3900

10 % 0f $ 390,000

Jergens Interest Income $ 4900

10 % 0f $ 490,000

Profit Balance $ 85,200

Profit Sharing Ratio

Christie : Jergens

390,000: 490,000

39: 49

Christie 's share = $ 85,200 * 39/88= $ 37759.09

Jergens Share = $ 85,200 * 49/88= 47440.9= $ 47,441

6 0

3 years ago

On January 3, 2018, Austin Corp. purchased 25% of the voting common stock of Gainsville Co., paying $2,500,000. Austin decided t

monitta

Answer:

The total amount of excess amortization for Austin’s 25% investment in Gainsville is $30,000.

Explanation:

total proportions from building, equipment and franchises

= building proportion over 10 years + equipment proportion over 5 years + franchises proportion over 8 years

= ($ 500,000 - $ 400,000)/(10) + (1,300,000 - 1,000,000)/(5) + ($ 400,000-$0)/(8)

= $100,000/10 + $300,000/5 + $400,000/8

= $10,000 + $60,000 + $50,000

=$120,000

Excess Amortization = 25%(total proportions from building, equipment and franchises)

= 25%($120,000)

= $30,000

Therefore, the total amount of excess amortization for Austin’s 25% investment in Gainsville is $30,000.

3 0

3 years ago

On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount

inn [45]

Answer:

$337.50

Explanation:

the premium on a three year policy = $1,350

premium per year = $1,350 / 3 = $450

premium per month = $450 / 12 = $37.50

Since the premium covered April to December, 9 months of insurance expense are accrued.

insurance expense for 9 months = $37.50 x 9 = $337.50

The journal entries should be:

April 1, purchase a 3 year insurance policy:

Dr Prepaid insurance 1,350

Cr Cash 1,350

December 31, accrued insurance expense:

Dr Insurance expense 337.50

Cr Prepaid insurance 337.50

8 0

3 years ago