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4 years ago

The Containers Inc. experienced the following events during its first year of operations,

Business

1 answer:

blsea [12.9K]4 years ago

3 0

Answer:

a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?

The accounts receivable account would appear in the assets section, and more specifically, in the current assets section. This is because accounts receivable are considered to be an assset.

b. Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet.

The Containeres Inc. first earned $25,000 on account, and by the end of the year, it had collected $22,000, thus, the final balance of the accounts receivable is $3,000.

c. Determine the amount of net income that would appear in the Year 1 income statement.

Net Income = Revenue - Expenses

Net Income = $25,00 - $18,000

= $7,000

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Foster, who owns a successful business with two locations and a few international clients, was approached by a large organizatio

torisob [31]

Answer:

C) can get started more easily and maneuver faster

Explanation:

A small business (sole proprietorship, partnership, limited liability company) can maneuver much faster than any corporation simply because the owners are the managers of the business. The owners do not have to ask anyone for permission to make any decisions or decide new business activities. Also, last but not least, you are your own boss, and that is priceless.

Small businesses are also much easier to set up and do not require a lot of paperwork and authorizations to start operating.

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4 years ago

Patrick Rach International issued 5% bonds convertible into shares of the company's common stock. Rach applies U.S. GAAP. Upon i

Ludmilka [50]

Answer:

The correct answer is letter "B": The proceeds of the bond issue entirely as debt.

Explanation:

Under the U.S. General Accepted Accounting Principles (GAAP) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the effective interest method or the straight-line method.

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4 years ago

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations.

blagie [28]

Answer:

a. Amber Corporation donated inventory of clothing (basis of $138,500, fair market value of $173,125) to a qualified charitable organization that operates homeless shelters.

charitable donations are valued at fair market value, in this case that equals $173,125

b. Brass Corporation donated stock held as an investment to Western College (a qualified organization). Brass acquired the stock three years ago for $70,800, and the fair market value on the date of the contribution is $113,280. Western College plans on selling the stock.

Again, we must use the fair market value to record donations, in this case = $113,280.

c. Ruby Corporation donates a sculpture held as an investment and worth $200,800 to a local museum (a qualified organization), which exhibits the sculpture. Ruby acquired the sculpture four years ago for $80,320.

use fair market once more, = $200,800

Explanation:

When you donate assets to qualifying charities, it is always better to do it by donating the itself, not selling it before and then giving the money. If you sell the asset, you will owe capital gains taxes (either long or short term). By donating the asset directly, you avoid capital gains taxes.

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4 years ago

Informational reports provide summaries and describe recurring activities as well as situational, nonrecurring events. They deli

boyakko [2]

Answer:

Part - 1.

Informational reports need details to get frequently visible. As long as we have a tendency to view the report it supports to achieve higher appreciative simply with none ambiguity.

Part - 2.

Headings are the actual fundamental cue; will this assessment report help to assist the reader. Headings aggravates interest and increases considerations, smart heading will increase usability. Thus, the reader will examine the page additional efficiently and in less period.

Part - 3.

It precises in condensed, easy-to-read design is taken into account as an efficient regarding the requirements segment of the commotion report.

Part - 4.

When establishing the report, the subsequent are the facts to be bear in mind.

Attention on 3 to 5 areas which will attention your reader.
Adjacent by creating the worth of the journey.
Use written account sequencing.

Part - 5.

The continuity in the project usually need development or provisional reports to explain their standing however not issues. Therefore, progress reports don't argue issues.

Part - 6.

In the facts finding report it might be a style of short informational report that have requested to put in writing. As, this report is entirely targeted on planned tax improvements and it have an effect on, this may be a fact finding report.

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3 years ago

Mapleleaf Industries declared a $0.85 per share cash dividend. The company has 130,000 shares authorized, 51,000 shares issued,

patriot [66]

Answer:

Mapleleaf Industries

Journal Entry

Debit Cash Dividend $40,800

Credit Dividends Payable $40,800

To record the declaration of $0.85 per share cash dividend.

Explanation:

This journal entry shows the two accounts involved and how they are recorded when a cash dividend is declared (declaration date).

Calculation of cash dividends is based on 48,000 shares of common stock outstanding and not on the issued shares nor the authorized. Usually, dividends are only payable to shareholders of record, who appear on the register of the company as holders of the shares on the specified date (date of records).

So, the divided equals $40,800 (48,000 x $0.85).

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4 years ago

Read 2 more answers