Answer:
$25,000 will be an ordinary income(FMV)
Explanation:
Kate received an offer of unrestricted partnership capital interest for the expertise services. so, Kate recognizes it's an "ordinary income"which should be booked at the fair market value of the partnership interest so offered.
i.e $25,000 is ordinary income (FMV)
Answer: d. Net income is part of the computation for ending retained earnings.
Explanation:
In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.
Retained Earnings are calculated by the formula,
Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends
Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.
$6,000.00 - ($2,050.00 - $750.00) =
$6,000.00 - $1,300.00 = $4,700.00
Bad debt expense for 2019 would be: $4,700.00
What are choices for this question
Answer:
(a) Physical controls
(b) Human resource controls
(c) Independent internal verification
(d) Segregation of duties
(e) Establishment of responsibility
Explanation:
(a) All over-the-counter receipts are entered in cash registers. That is an example of the physical controls principle.
(b) All cashiers are bonded. That is an example of the human resource controls principle.
(c) Daily cash counts are made by cashier department supervisors. That is an example of the independent internal verification principle.
(d) The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. That is an example of the segregation of duties principle.
(e) Only cashiers may operate cash registers. That is an example of the establishment of responsibility principle.
