Answer and Explanation:
The journal entries are shown below:
On Aug. 1
Merchandise Inventory $75,000
To Accounts Payable $75,000
(Being the purchase of merchandise inventory is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it also increased the liabilities
On Sept. 1
Accounts Payable $75,000
To Notes Payable $75,000
(Being the issued of note payable on the account is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the note payable as it increased the liabilities
On Nov. 30
Notes Payable $75,000
Interest Expense $1,125 ($75,000 × 6% × 90 days ÷ 360 days)
To Cash $76,125
(Being cash paid is recorded)
For recording this we debited the note payable and interest expense as it decreased the liabilities and increased the expense and credited the cash as it decreased the assets
Answer:
The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.
Explanation:
Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.
It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.
If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.
However, goodwill can be characterized as something that can generate future profits for the company.
Answer:
We can assume that Sparks Corporation is going to pay preferred stockholders first:
preferred stock dividends = $100 x 8% x 3,000 = $24,000
If the corporation doesn't owe any previous dividends to preferred stockholders, then the remaining $81,000 (= $105,000 - $24,000) should be distributed to common stockholders.
Each preferred stock will receive a $8 dividend. I don't know the amount of outstanding common stock, so it is not possible to determine how much dividend will be distributed for each common stock outstanding.
I think the most appropriate answer would be B.
I hope it helped you!
Answer:
$3,028
Explanation:
As we know that
The inventory should be valued at cost or net realizable value which ever is lower
(A) (B) (A × B)
Product Quantity Lower value of cost or NRV Amount
Gloves 16 $121 $1,936
Shoes 26 $21 $546
Hats 13 $42 $546
Total amount $3,028
Hence, the inventory recorded amount is $3,028
