Explanation:
a. net sales less cost of goods sold
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales
Answer:
November 27
Dr Cash $15,750
Cr Interest Revenue $625
Cr Interest Receivable $125
Cr Notes Receivable for $15,000
Explanation:
Preparation for the necessary November 27 entry
November 27
Dr Cash $15,750
[$15,000+($15,000 × 10% × 180/360) ]
($15,000 + $750=$15,750)
Cr Interest Revenue $625
( $15,000 × 10% × 150/360),
Cr Interest Receivable $125
Cr Notes Receivable for $15,000
Note that between the month of June 30 and November 27 we would have a total of 150 days
Answer:
A) Jane recognizes no gain; Walt recognizes a gain of $50,000.
Explanation:
§ 351 allows individuals or businesses tax free transfers to controlled corporations. In other words, Jane and Walt can transfer assets to form Yellow Corporation without recognizing any gain or loss.
Since Walt received some money from this transaction, that must be considered a gain since it is not included under § 351.
Answer:
2,000 loss on redemption
Explanation:
the company will recognzie considering the current value of the bonds, thus the carrying value:
as the face value is lower than carrying value there is a discoutn for the difference: 104,000 - 98,000 = 6,000
When we compare the cash outlay with the carrying value we sovle for the redemption result:
98,000 bonds are paid at 100,000 therefore 2,000 loss
bonds payable 104,000 debit
loss on redemption 2,000 debit
discount on BP 6,000 credit
cash 100,000 credit
