Answer:
DR Inventory $609,000
Land $1,086,750
Buildings $2,138,250
Customer Relationships $842,250
Goodwill $965,750
CR Accounts Payable $102,000
Common Stock $56,400
Additional Paid-In Capital $1,353,600
Cash $4,130,000
Working
Common Stock = 28,200 shares * $2 = $56,400
Additional Paid in Cap = 28,200 shares * ( 50 - 2) = $1,353,600
DR Additional Paid-In Capital $32,400
CR Cash $32,400
DR Professional Services Expense $49,800
CR Cash $49,800
Answer:
each dollar that is invested by the shareholders
Explanation:
The formula to compute the return on equity is shown below:
Return on equity = (Net income) ÷ (total equity)
It shows a relationship between the net income and the total equity so that the correct percentage can be computed.
It also shows the profitability of the company which reflects each dollar that is invested by the shareholders
Answer:
Year end adjusting entry:
Debit Credit
Salaries expense $1,000
(10*100)
Salaries payable $1,000
January 4, journal entry:
Debit Credit
Salaries expense $3,000
(10*100*3)
Salaries payable $1,000
Cash $4,000
(10*100*4)
Explanation:
The year end adjusting entry that shall be recorded by the Pablo management in its accounts on December 31 in respect of salaries expenses is given as follows:
Debit Credit
Salaries expense $1,000
(10*100)
Salaries payable $1,000
The journal entry that shall be recorded by the Pablo management in its accounts on January 4 in respect of salaries paid to employees is given as follows:
Debit Credit
Salaries expense $3,000
(10*100*3)
Salaries payable $1,000
Cash $4,000
(10*100*4)
Answer:
E)Pure play approach
Explanation:
From the question we are informed about, Farmer's Supply, Inc. who is considering opening a clothing store, which would be a new line of business for the firm. Management has decided to use the cost of capital of a similar clothing store as the discount rate that should be used to evaluate this proposed expansion. In this case, the terms used to describe the approach Farmer's Supply is taking to establish an appropriate discount rate for the project is Pure play approach.
Pure play approach In finance, can be regarded as be used in estimating cost of equity capital especially of that of
private companies, and this involve the examination of beta coefficient of single focused companies as well as public companies. In this approach
company set it's focuses on a particular single type product.
