Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Answer:
Correct one is Option D.
<u>$6,500</u>
Explanation:
Fair value of its 20% interest in the receivables 8000
Less: Factoring fee=50000*3%
=1500
Amount receivable from factor= 8000-1500=6500
Answer:
Preston has to make four phone calls to clients today. The call to Mr. Miller will take about an hour to complete, the call to Ms. Winnecuit will take about five minutes to complete, the call to Mr. Drudge will take about thirty minutes and the call to Mrs. Freich will take about fifteen minutes to complete. If all the calls are equally important, who should Preston call first?
From the analogy above, in order to maximize the time frame. The call to lesser clients should be prioritized before others, this means that Preston should place a call to Ms Winnecuit which will last for five minutes follow by Mrs Freich which will last for fifteen minutes follow by Mr Drudge which will last for thirty minutes and lastly to Mr Miller which will last for about an hour.
Prioritization comes in play to time frame of each call, the lesser minutes calls will not take too much time to be completed while the call with highest time frame comes last as a result of the time involved.
Explanation:
Answer:
$20,000
Explanation:
Calculation to determine by what amount will Perry's earnings increase due to this lease
Using this formula
Selling price=Fair value-Cost
Let plug in the formula
Selling price=$125,000-$105,000
Selling price=$20,000
Therefore The amount that Perry's earnings will increase due to this lease is $20,000
