1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
astra-53 [7]
3 years ago
11

Foghorn Company entered into a sales transaction in which it agreed to receive common stock from Leghorn Corporation as payment

for services provided to Leghorn Corporation. The journal entry to record the receipt of payment for the sales transaction will include a
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

The journal entry should be:

Dr Investment in Leghorn Corporation XX

    Cr Accounts receivable XX

Explanation:

Foghorn Company must record the noncash payment as an asset which should be equal to the amount of money that it generally would have collected from the services provided. Since the payment is done through stocks, it must record that collection as an investing account.

Since transferring stocks usually takes a couple of days at least, the original journal entry should have recorded a debit to accounts receivable and a credit to service revenue.

You might be interested in
How can expectations about the future change consumer behavior?
Scrat [10]
The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.
7 0
3 years ago
Read 2 more answers
How long after irs process return will it be direct deposited.
lord [1]
Most refunds will be issued in less than 21 days. You can start checking the status of your refund within 24 hours after you have e-filed your return. Remember, the fastest way to get your refund is to e-file and choose direct deposit.
6 0
3 years ago
A(n) _____ is based on authority stemming from hierarchical rank and is responsible for the overall performance of the business
Jet001 [13]

Management is based on authority stemming from the hierarchical rank and is responsible for the overall performance of the business unit. Planning, organizing, leading, and regulating the resources of the company are all parts of management, which entails integrating the work of individuals.

<h3>What is a leader in management?</h3>

The goal of a leader is to enable their team to develop their own leadership skills. They cultivate a group of creative and highly motivated leaders dedicated to realizing a common goal. Employers need to be managed by leaders who keep them on task and provide them structure at work.

Management is the process of accomplishing organizational objectives by effective and efficient planning, organizing, directing, and control of the organization's people, physical, financial, and informational resources. Planning, organizing, staffing, leading, and managing are the five general responsibilities that makeup management at its most basic level. These five responsibilities are a part of a corpus of guidelines and management-related beliefs.

Learn more about Management here:

brainly.com/question/14523862

#SPJ4

4 0
2 years ago
Over the last 50 years, family income has become __________ in explaining the educational achievement gap
salantis [7]
It seems that you have missed the necessary options for us to answer this question,  but anyway, hope this answer helps. Over the last 50 years, family income has become MORE IMPORTANT THAN RACE <span>in explaining the educational achievement gap. Hope this answers your question.</span>
7 0
3 years ago
Firm X and Firm Y both sell the same products at the same price; both firms are the same size with identical sales levels; Firm
Vika [28.1K]

Answer:

The options are given below:

A. Firm X

B. Firm Y

C. Same variability of operating profits

D. It would depend on tax effect on taxable income

The correct option is B. Firm Y

Explanation:

This is because firm Y has a higher operating leverage than firm X.

<u>Operating Leverage</u> refers to a cost-accounting formula that measures the degree to which a firm can increase operating income by increasing revenue. Operating leverage actually boils down to the analysis of fixed costs and variable costs, and it is highest in companies that have a high fixed operating costs in comparison with variable operating costs. What this means is that this kind of company makes use of more fixed assets. On the other hand, operating leverage is lowest in companies that have a low fixed operating costs when compared with variable operating costs.

Companies with high operating leverage are capable of making more money from each additional sale if they do not have to incur more costs to produce more sales.

Therefore, from the scenario given above, we can conclude that firm Y has a higher operating leverage than firm X, because firm X has lower fixed costs than firm Y, and a higher variable cost than firm Y as well. Hence, firm Y has the potential to make more operating profits from its business activities.

4 0
3 years ago
Other questions:
  • What is Six Sigma quality?
    5·1 answer
  • Items that have a useful life of more than one year and used in the business
    5·1 answer
  • Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she doe
    13·1 answer
  • Jeremy was interested in science and math in school. In college, Jeremy studied to become an ecologist who studies the effect of
    13·1 answer
  • 2. Business and financial risk The impact of financial leverage on return on equity and earnings per share Consider the followin
    12·1 answer
  • The entry to convert from the initial value method to the equity method usually involves a debit to Investment in Subsidiary acc
    15·1 answer
  • Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated
    7·1 answer
  • Question 3<br><br> Total expenditure equals price times elasticity?<br> True or False
    7·1 answer
  • The project management institute initially published the _________ to address the need to bridge the gap between organizational
    7·1 answer
  • because it produces and distributes a specific type of cultural product for public consumption to profit financially, a video ga
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!