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Tresset [83]
3 years ago
9

How much will be in the Prepaid Insurance account at the end of the year, after the adjusting entries have been prepared and pos

ted
Business
1 answer:
Crazy boy [7]3 years ago
8 0

Answer: $8,400

Explanation:

The $9,600 is for 2 years in advance. This can be apportioned per month at a rate of;

= 9,600/24

= $400 per month.

October to the end of the year is 3 months so;

= 400 * 3

= $1,200 will be recorded for the year.

Prepaid Insurance will therefore reduce to;

= 9,600 - 1,200

= $8,400

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Answer:

An enterprise resource planning (ERP) system is:

(a) A collection of integrated software for every functional area within an organization.

Explanation:

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3 years ago
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This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 10,000 shares of Gogo stock for $8 per share for fi
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Answer:

Gogo Inc. and Mrs. Mill

The Income that Mrs. Mill must recognize in the year of exercise is:

= $23,100

Explanation:

a) Data and Calculations:

Options given to Mrs. Mill = 10,000 shares of Gogo stock

Exercise price of the options = $8 per share

Period of option exercise = 5 years

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Selling price of shares at exercise date = $10.31

Compensation expense recorded by Gogo = $26,700

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Income that Mrs. Mill must recognize in the year of exercise = $23,100 ($10.31 - $8) * 10,000

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2 years ago
Give at least one disadvantage of incorporation and explain why it is a disadvantage.
Naya [18.7K]

Answer:

1. Lack of ownership

2. Higher taxation

3. Legalities and formalities

Explanation:

An incorporated company is one that has a separate legal entity from that of its owner and shareholders. Disadvantages of an incorporated company include:

  • <em>Lack of ownership</em>

An incorporated business is a separate entity from its owner. Hence, separate bank accounts would be required along with separate business identification since personal identification would not be sufficient. At the same time, personal funds must be kept separate from business funds. Mixture of the two is an offense against the law. Also, as shareholders are involved, they may have voting rights, hence, the owner will not have a complete say in all business activities.

  • <em>Higher taxation</em>

Incorporated companies are expected to pay higher taxes whilst others may have minimum taxable limits. The owner will have to pay income tax as well as corporate taxes. They will also accumulate other expenses such as accounts and legal fees whilst processing these complex taxation methods.

  • <em>Legalities and formalities</em>

Incorporating a business in itself requires complex procedures and a lot of paperwork. After this has been accomplished, the company is still expected to follow strict codes of conduct such as those provided by the Companies Act. This would include the way borrowings and lending occur, investments, dividend provisions, meetings and audits. They will also have to register documents under the Registrar of Companies.

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3 years ago
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 Variable expenses 220,000 Con
blondinia [14]
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3 years ago
The organization primarily responsible for establishing accounting and reporting standards in the United States is the Financial
Triss [41]

Answer:

This statement is True.

Explanation:

The Financial Accounting Standards Board (FASB) is the successor of the <u><em>Accounting Principles Board</em></u> and was founded in 1973. Currently based in Norwalk - Conn, the FASB is responsible of establishing the Generally Accepted Accounting Principles (GAAP), and, overall, is in charge of setting accounting and financial reporting standards for public and private companies, as well as non-profit organizations in the United States. The FASB is also currently working to establish worldwide acceptable standards together with the International Accounting Standards Board (IASB).

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