Answer:
a. $33,000.
b. $36,000.
Explanation:
Net income is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is also called net earnings.
Now, Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it's earned, and expenses when they're billed (but not paid).
a. 2014 Cash-basis net income:
Primo Industries collected $105,000 from customers in 2019
Primo Industries also paid $72,000 for expenses in 2019
=105,000-72,000
=$33,000
b. 2014 accrual-basis net income.
=(105,000-25000+40000)-(72000-30000+42000)
=120000-84000
=$36,000
Answer:
a. debit Notes Receivable for the face value of the note
Explanation:
The note will generate interest over time, but at the moment of receiving the note, <u>it hasn't accrued any interest,</u> so we have to only <u>record for the value of the note today.</u>
Also this note represent the right to claim cash from the person who sign the note, so <u>it is an asset for the company.</u>
Asset <u>increase from debit side</u>, so the Note Receivable will be debited.
Answer:
Service facilities must be located close to suppliers and laborers.
Explanation:
Services, unlike products, are intangible and are not produced or delivered the same way as products are.
<u>While production facilities for products, should be located close to suppliers and laborers, this is not the case with service facilities.</u>
Sheila Recognized gain is 
Jacob Recognized gain is 
<u>Solution:
</u>
Sheila’s Sale:
Amount noticed 
Fixed basis 
-------------
Gain 
Recognized Gain =
Jacob’s Sale:
Amount noticed 
Fixed basis 
-------------
Gain 
Recognized Gain = $8000
The $40,000 profit base of Jacob is same as the adjusted basis of Elane.
Answer:
Under FINRA rules, this is:
A conflict of interest.
Explanation:
The underwriter has advised on the potential acquisition and is now offering the shares to the officers of the manufacturing company that hired the underwriting firm. The underwriter should have allowed the officers of the manufacturing company to purchase the shares on their own since it is a public offering and not a private placement. The information is already in the public domain. By offering the shares directly to the officers, it looks as if the underwriter is trying to compensate them for the contract it received earlier.
