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allochka39001 [22]
3 years ago
8

Which of the following would not be an adjustment to net income using the indirect method? An increase in accounts receivable. A

decrease in a prepaid expense. A loss on equipment sold. An increase in accrued wages. An increase in plant, property and equipment.
Business
1 answer:
sertanlavr [38]3 years ago
6 0

Answer:

Using the indirect method, an increase in accrued wages is not an adjustment to net income.

Explanation:

An increase in accounts receivable are subtracted from net income.

A decrease in a prepaid expense are added to net income.

A loss on equipment sold are added to net income.

An increase in accrued wages not consider. (Increase in the wages payable balance are added to net income)

An increase in plant, property and equipment.are subtracted from net income.

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On January 1, 2021, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30
joja [24]

Answer:

Upon issuance, Ozark should "<em>Credit premium on bonds payable $100,000</em>"

Explanation:

Issue price of bond is ($10 million * $101) = $10,100,000

The face value of the bond                       = $10,000,000

The premium on bond = $10,100,000 - $10,000,000

The premium on bond = $100,000

                                   Journal entry

                                                    Debit                   Credit

Cash                                        $10,100,000

Premium on bonds payable                                $100,000

Bonds payable                                                     $10,000,000

Conclusion: Upon issuance, Ozark should "Credit premium on bonds payable $100,000"

7 0
3 years ago
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,
IrinaK [193]

Answer:

a. Premium

b. Discount

c. Discount

Explanation:

a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium

Therefore, Valley's bond will sell at a premium.

b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, Spring's bond will sell at a discount.

c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, River Inc.'s bond will sell at a discount.

3 0
3 years ago
Hot Shot Delivery Inc. provides the following year end data:
saw5 [17]

Answer:

27.3%

Explanation:

rate of retun on assets:

\frac{Income}{Assets} = $Assets rate of return

​where:

Net income:              112,000

2018 Assets:           410,000

\frac{112,000}{410,000} = $Assets rate of return

$Assets rate of return 0.2731707317073171‬ = 27.32%

During 2018 each dollar of assets generate 27.32 cents of income.

3 0
3 years ago
In business, it is customary to praise individualistic competition and denigrate collective bargaining in all forms. However, in
GuDViN [60]

Answer:

What lessons are we to learn from this?

The Hanseatic league, just like the Northern Italian City-States of the Late Middle Ages, are early examples of capitalism: they represent proto-capitalism.

In the cities that belonged to the Hanseatic League, the work of merchants was promoted, and capital accumulation and the profit motive began to develop. However, this does not meant that cooperation was out of place. The merchants cooperated voluntarily because they could get more working in association.

Are there prospects for more merchant leagues in an increasingly globalized economy?

There will always be the prospect for more merchant leagues, because people naturally cooperate if it is in the benefit of all the parties.

In fact, trade unions and economic unions could be seen as a form of merchant league, that are created by states instead of individual merchants.

3 0
3 years ago
A difference between book income and tax income that __________ (increases / decreases) taxable income in the current year but w
LuckyWell [14K]

Answer:

Temporary difference

Explanation:

The reason is that the temporary difference is due to allowable and disallowable expenses and returns for some period which in later years equals to the allowable or disallowable incomes and expenses. This is all because of the temporary differences.

5 0
3 years ago
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