Answer:
licensing
Explanation:
A licensing agreement between Leonards and Penny will enable Penny to use Leonards' proprietary assets for a defined time period. In exchange Penny must pay royalty fees to Leonards. The license will allow Penny to manufacture and sell Leonards' products in California (or the whole US). This licensing agreement will save money and resources to both Loenards and Penny.
Answer:
Expectancy Theory
Explanation:
The expectancy theory basically talks about how individuals will behave or react in a certain way because they are motivated and as a result choose to act in accordance or react to specific situations due to what they expect the results to be.
Answer:
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Explanation:
It is Important to note that the Acquirer (Horicon Corp) is a Corporate.
The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.
The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Answer:
with a life expectancy of 20 years the annuity will yield: 0.21% per month
Explanation:
We will calcualte the monthly interest rate of an annuity of 375 for 20 years which PV is 71,000
C 375
time 240 (20 years x 12 months a year)
PV $71,000.00
<u>We can solve for rate using excel goal seek:</u>
we write any number value on cell A1
then on any other cell we write:
=PV(A1,240,375)
then we will use goal seek and define:
this cell, with the value of 71,000 changing A1
rate = 0.002053645 = 0.21% per month
Answer:
F. $500
Explanation:
At the end of the period, accounts receivable balance of $40,000
Bad debts are estimated: 2% x $40,000 = $800
Before adjusting, allowance for doubtful accounts balance of $300 (credit) and the company uses the allowance method to account for bad debts. Therefore,
Bad debts expense = $800 - $300 = $500
The entry will be made:
Debit Bad debts expense $500
Credit Allowance for doubtful accounts $500
