Answer:
$80,000
Explanation:
Calculation for the net income for Dana's Dress Shop using the traditional format
NET INCOME USING TRADITIONAL FORMAT
Using this formula
NET INCOME=Gross Margin -Total Selling & Administrative Expenses
Where,
Gross Margin =$140,000
Total Selling & Administrative Expenses=$60,000
Let plug in the formula
NET INCOME=$140,000-$60,000
NET INCOME=$80,000
Therefore the NET INCOME will be $80,000.
It will be expected that the difference between a company's market value and book value should <u>be larger than</u> a company with mostly physical and financial assets if the large portion of company value is in intellectual and human assets.
<h3>What is an intellectual/human assets?</h3>
These are asset possessed by a firm that ranges from human capital, information capital, brand awareness, instructional capital etc.
These are assets that can be improved when a firm hires better employees, conduct training programs, develops new patents etc
In conclusion, since the large portion of company value is in intellectual and human assets, then, the market/book value would be larger than a company with mostly physical/financial assets.
Read more about assets
<em>brainly.com/question/25504767</em>
Answer:
<u>debit interest expense and credit cash</u>
Explanation:
Remember journal entries records all the various transactions of a company (including bond issuer) in the form of either debit or credit transactions.
The issuance of the bond on the journal entry would be to debit interest expense and credit cash because the issuer of the bond receives cash ( a face value of $750,000) from investors and thus would <em>record a liability</em> for the bonds issued.
Paying a graphic designer to create a logo.
