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3 years ago

Which of the following is true about a sole proprietorship?

1 answer:

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The right answer for the question that is being asked and shown above is that: "d. A sole proprietorship has a life of its own apart from its owner." It is considered as the simplest business form where one can operate. It is not a legal entity in itself.

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Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

tino4ka555 [31]

Answer:

See attached accounting entries.

Explanation:

For question 1, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 2, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated maximum amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is reasonably probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is remote, that is, there little relationship with this case that cause Pacific Cruise Lines being liable to pay as such potential amount of $1.29 million should be set aside.

Download xlsx

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3 years ago

Gordon Company started operations on January 1 of the current year. It is now December 31, the end of the current annual account

ryzh [129]

Answer:

Gordon Company

Analysis of Transactions at December 31:

a. Office Supplies $670 (DR)

Office Supplies Expense $1,630 (DR)

b. Equipment $23,500 (DR)

Accumulated Depreciation on Equipment $2,350 (CR)

Depreciation Expense - Equipment $2,350 (DR)

c. Prepaid Insurance $630 (DR)

Insurance Expense $210 (DR)

Explanation:

1. The Office Supplies Account will be debited with $2,300 and credited with $1,630 ($2,300 - $670) as Office Supplies Expense (used supplies) for the year. This will leave a debit balance of $670 in the account.

2. The equipment account will be maintained at its cost, while a contra account (accumulated depreciation) is created to accumulate the depreciation expenses over the years. The useful life of the equipment is 10 years ($23,500/$2,350) with an annual depreciation expense of $2,350.

3. The Prepaid Insurance Account will be debited with $840 and credited with $210 ($840/4) representing Insurance that expired during the year for six months. The balance of $630 is carried forward for the remaining one and half years.

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3 years ago

Marsha is single, had gross income of $50,000, and incurred the following expenses:________. Charitable contribution $2,000 Taxe

zysi [14]

Marsha is single, had gross income of $50,000, and incurred the following expenses: Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250Her AGI is:

d. $49,750

Explanation:

Marsha is single, had gross income of $50,000, and incurred the following expenses: Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250Her AGI is:

d. $49,750
The Interest which is used to buy or carry tax exempt securities is not deductible.
Only 20% of the adjusted gross income limitation is applied to certain contributions made to private foundations.
Married couple must be,filing a separate return, and their spouse is itemizing.

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3 years ago

On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shi

IgorC [24]

Answer:

<u>Journal entries for Arnold Company:</u>

June 3, merchandise sold to Chester Company

Dr Accounts receivable 3,000

Cr Merchandise inventory 3,000

Dr Cost of goods sold XXX (not specified)

Cr Sales Revenue 3,000

June 12, payment received from Chester Company

Dr Cash 2,940

Dr Sales discounts 60 ($3,000 x 2%)

Cr Accounts receivable 3,000

<u>Journal entries for Chester Company:</u>

June 3, merchandise purchased from Arnold Company

Dr Merchandise inventory 3,000

Cr Accounts payable 3,000

June 8, shipping invoice received

Dr Merchandise inventory 90

Cr Accounts payable

June 12, payment made to Arnold Company

Dr Accounts payable 3,000

Cr Cash 2,940

Cr Purchase discounts 60

June 12, payment made to John Booth transport

Dr Accounts payable 90

Cr Cash 90

4 0

3 years ago

What is the key to success?

Alisiya [41]

Honesty and working hard.

4 0

3 years ago

Read 2 more answers