Answer and Explanation:
a. In the case when the subsidiary company owns none of the preferred stock so the income of the subsidiary and the net assets allocated to the preferred stocks that not owned by the parent would be involved in the non-controlling interest
b. Now if the parent company owned 100% of the preferred stock so the share of the income of the subsidiary and the net asset allocated to the preferred shares would be removed against the balance left in the investment account of the parent
Answer:
a. decrease
Explanation:
Good harvest will increase supply which will decrease the price.
Therefore, due to inelastic supply, revenue will decrease.
Answer:
Note: The question is attached as picture
(a) Example has been illustrated
(b) Dr 15. Operating Expenses (wages, supplies)
Cr 1. Cash
(c) Dr 7. Account Payable
Cr 1. Cash
(d) Dr 3. Supplies
Cr 1. Cash
(e) Dr 2. Account Receivable
Cr 14. Service Revenue
(f) Dr 1. Cash
Cr 2. Account Receivable
(g) Dr 1. Cash
Cr 11. Common Stock
(h) Dr 15. Operating Expenses (wages, supplies)
Cr 1. Cash
(i) Dr 15. Operating Expenses (wages, supplies)
Cr 9. Wages Payable
(j) Dr 6. Patent
Cr 1. Cash
(k) Dr 1. Cash
Cr. 14. Service Revenue
(l) Dr 15. Operating Expenses (wages, supplies)
Cr 3. Supplies
(m) Dr 16. Income Tax Expense
Cr 1. Cash
Cr. 10. Income Tax Payable
(n) Dr 8. Note Payable
Dr 17. Interest Expense
Cr 1. Cash
(o) Dr 4. Prepaid Expense
Cr 1. Cash
This question is incomplete.
The complete question, answer & explanation for this question is given in the attachment below.