Include the design, creation, and delivery of a product option (a) i.e, primary activities.
Inbound logistics, operation outbound logistics, marketing and sales, and service are the primary activities in the value chain. Infrastructure management, human resource management, and purchasing are examples of secondary or support tasks.
A value chain is a series of tasks that a business engaged in a certain industry completes in order to offer a worthwhile product to the final consumer. Well-managed primary activities are frequently the source of a business's cost advantage because management problems and inefficiencies are reasonably simple to spot here. This indicates that the company can produce a good or service for less money than its rivals.
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It's a long-term investment and the company owns 45% of shares of Hall Inc. Hence the company exercises significant influence over Hall Inc.
The various journal entries on the transaction occured would be made as under:
No. Account Name Debit Credit
1. Investment 1296000
Cash 1296000
2. Investment 97650
Investment income
(217000 x 45%) 97650
3. Cash 64800
Investment (1.60 x 40500) 64800
The effect on the cash flow statement will be:
Operating activities:
No effect 0
Investing activities:
Purchase of investment -1296000
Receipt of dividends 64800
The current stock price is also known as the marketplace fee. it's far the fee at which a share of inventory or every other security is ultimately traded. In an open market, the modern charge functions as a baseline . Divide equity by the wide variety of stocks issued. If, say, the company's well worth $10 million and there are 10,000 shares, the share fee of every percentage is $1,000.
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Answer and Explanation:
The journal entry for recording the bad debt expense is shown below:
a. In case of when direct write off method is used
Bad debt expense $13,780
To Account receivable-Wil Treadwell $13,780
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expenses and credited the account receivable as it decreased the assets
b. In case of when allowance method is used
Allowance for doubtful accounts $13,780
To Account receivable-Wil Treadwell $13,780
(Being the allowance is recorded)
Here the allowance is debited as it increased the assets and credited the account receivable as it decreased the assets
