Answer:
b. credit to Gain on Sale of Investments for $2,400.
Explanation:
May 1, 20Y6
Purchase price of Bond = $100
Number of Bond Purchased = $100,000 / 100 = 1,000 per bond
February 1, 20Y7
Sale Price of Bond = $103 per Bond
Gain on Sale = $103 - $100 = $3 per bond
Number of Bond Sold = $80,000 / 100 = 800 bonds
Gain on sold bonds = 800 bonds x $3 per bond = $2,400
Journal Entry Will be as follows:
Dr. Cr.
Cash (800 x 103) $82,400
Gain on sale $2,400
Investment in Bond $80,000
Answer:
False
Explanation:
The whole purpose of the Madrid Protocol is to simplify the registration of trademarks among the participating countries. A company or person can register a trademark in any of the participating countries and it will be valid in all the countries that signed the protocol (over 90 countries). This simplifies and unifies the trademark registration process.
Answer:
Each manager should be evaluated on the costs but not the revenues that are under his or her control.
Explanation:
Controllability refers to the amount of influence that a manager has over costs or revenues. In responsibility accounting, only those elements are identified which are controllable. A person is given the responsibility for managing such kind of elements.
A person is given an authority to control the costs so that they are able to keep up their performance.
However, according to the controllability concept to responsibility accounting,
each manager should also be evaluated on the revenues that are under his or her control.
