Answer:
Part a
Debit : Accounts Receivable - Vargas Co. $148,600
Debit : Cost of Sales $89,160
Credit : Sales Revenue $148,600
Credit : Merchandise $89,160
Part b
Debit : Freight Expenses $2,100
Credit : Cash $2,100
Part c
Debit : Cash $133,740
Debit : Discount allowed $14,860
Credit : Accounts Receivable - Vargas Co. $148,600
Explanation:
A corresponding cost of sales must be recorded each time a sale is made. The freight costs are company costs for Sievert Co. and will be expensed in the income statement.
The payment due is at 90 % after the discount of 10% given that the payment is made within the credit term of 30 days.
Answer:
- The corporation survives even if managers are dismissed.
- Shareholders can sell their holdings without disrupting the business.
Explanation:
Large corporations are not as easy to dissolve as other types of companies because they have other resources that are able to keep them going if they lose some. One of those resources could be a manager. Should a manager be dismissed, the corporation will survive and simply replaced the dismissed manager.
Also with such corporations, the shareholders can simply sell their shares and the business's operation will not be disrupted as the shareholders do not have any direct say over the day to day running of the business.
The debt to equity ratio for the period, based on the total liabilities and total equity, would be 1.31
<h3>How to find the debt to equity ratio?</h3>
The debt to equity ratio shows the amount of debt that a company has as a ratio of the debts to the equity that the company has.
The debt to equity ratio can be found by the formula:
= Total liabilities / Total Equity
Total liabilities = $16, 113, 000
Total equity = $12, 300, 000
The debt to equity ratio is therefore:
= 16, 113, 000 / 12, 300, 000
= 1.31
Find out more on the debt to equity ratio at brainly.com/question/27993089
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