Answer:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
This type of financing is called a mortgage loan. This is widely used in real estate business. The buyer acquires the real estate property, say a house. Without paying the full price of the house, you can apply for a loan, usually with banks. In return, you are going to allocate monthly payments to pay off the principal amount that you borrowed plus the interest of your loan until all debt pays off. Until the debt is not yet cleared, your property is declared as collateral.
Answer:Yes it should be reported.
$2.8 million should be reported in the the balance sheet as a liability.
Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.
Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.
If the value can be estimated, then the liability has a higher chance of being realised.
Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.
Therefore the $2.8 million liability should be reported in its 2018 balance sheet
Answer:
a. $6.00
Explanation:
Earnings per share on common stock or preferred stock is both after providing for interest and tax expense, therefore earnings per share of $10 would increase owner's equity by $10 100,000 shares = $1,000,000
Provided net increase recorded in equity = $400,000
Thus dividend paid = $1,000,000 - $400,000 = $600,000
Dividend per share = $600,000/100,000 = $6 per share.
Interest paid by corporation B is not to be considered as this is paid before calculating Earnings per share.
Correct option is
a. $6.00