Answer:
Correct answer is B, $2,500
Explanation:
To get profit, First, deduct variable cost from sales for the period to get the contribution margin. Finally, Deduct fixed cost from contibution margin to get the profit for the period.
Computation would be:
Sales (1,000 x 7) $7,000
Less: Variable cost (1,000 x 3) <u>$3,000</u>
Contribution margin $4,000
Less: Fixed cost (1,000 x 1.5) <u>$1,500</u>
Profit $2,500
*<em>It can also be done by deducting variable cost from the selling price to get the unit contribution margin then deduct the fixed cost from the unit contribution margin and from it multiply the output sold to get the profit.</em>
Answer: 1. True
2. True
3. False
4. True
5. False
6. False
7. False
8. False
9. True
10. False
Explanation:
A corporation is an entity that is separate and distinct from its owners. A corporation enjoys some of the rights that individuals possess as they can own assets, enter contracts, sue and be sued, loan and borrow money, hire employees, and pay taxes.
Most of the largest U.S. corporations are publicly held corporations. The net income of a corporation is taxed as a separate entity. When a corporation doesn't fulfill its obligation to pay a debt, the creditors have no legal claim on the personal assets that the owners of a corporation possess.
In the case of transfer of stock.from one person to another, the approval of other stakeholders or corporation is not required. The shareholders are the legal owners of the corporation while the chief accounting officer is the controller.
Corporations are subject to more state and federal regulations than sole proprietorships and partnerships.
C C: He ran furiously through the hall, shouting "I'm here!"
Answer:
$79,097
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity. This may be expressed mathematically as
Assets = Liabilities + Equity
While assets include fixed assets, cash, inventories, account receivables etc, liabilities include accounts payable, loans payable, accrued expenses etc.
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
Hence in current year,
Total equity = $255,213 - $151,328
= $103,885
If retained earnings is $47,588 then common stock
= $103,885 - $47,588
= $56,297
Change to equity next year
= $55,000
Change to retained earnings
= $44,200 - $12,000
= $32,200
Hence change in common stock
= $55,000 - $32,200
= $22,800
Common stock balance
= $56,297 + $22,800
= $79,097