Answer:
The correct answer to the following question is B) primary demand stimulation.
Explanation:
Primary demand stimulation can be defined as such advertising messages, whose main objective is to promote the benefits of a product or product category, rather than promoting a whole brand. The main purpose of making such advertisement is to influence the buying decisions of consumers by telling them about the benefits of product and also in situation when a new product has been launched or technological up gradation has been made.
Answer:
(a) $5.87 per share
; $1.585 per share
(b) $110,700
Explanation:
(a) Earnings per share:
= (Operating profit - Interest expense - tax - preferred dividends) ÷ common stock outstanding
= ($282,000 - $39,200 - $61,700 - $29,500) ÷ 25,800
= $151,600 ÷ 25,800
= $5.87 per share
Common dividends per share for elite trailer parks:
= Dividend paid ÷ common stock outstanding
= $40,900 ÷ 25,800
= $1.585 per share
(b) The increase in retained earnings for the year:
= $151,600 - common dividend paid
= $151,600 - $40,900
= $110,700
Answer:
Debit insurance expense $5,200
Credit prepaid insurance $5,200
A decrease of $5,200 in the current asset,that will be charged to expense account.
Explanation:
An adjusting entry to recognize the expire portion of the insurance must be done at the year end. In this entry, we will recognize the expire portion of the prepaid insurance that was acquired on May 1.
($7,800 / 12 months = $650 x 8 months = $5,200)
The effect on financial statement is that, prepaid insurance which is a current asset will decreased by $5,200 makes the balance of the prepaid insurance decreased to $2,600 at year end.
Answer:
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
Explanation:
The company uses the aging of receivable method to estimate uncollectible.
Estimated uncollectible would be $28,500
Before year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $800
Bad debts expense = $28,500 + $800 = $29,300
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
