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Ray Of Light [21]
3 years ago
9

During 2013, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $33,000. The business paid divi

dends of $20,000. What is the amount of stockholders' equity at December 31, 2014?
Business
1 answer:
loris [4]3 years ago
4 0

Answer: the correct answer is $7,000

Explanation:

Revenues          $60,000

Expenses         ($33, 000)

Paid Dividens   ($20,000)

Equity                   $7,000   ($60,000-$33,000-$20,000)

You might be interested in
1. The doctrine of stare decisis requires lower courts to follow established case law in deciding similar cases.
Vitek1552 [10]

Answer

(A) true

Explanation:

Stare decisis is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case. Stare decisis requires that cases follow the precedents of other similar cases in similar jurisdictions.

7 0
4 years ago
Meteor Co. purchased merchandise on March 4, 2021, at a price of $50,000, subject to credit terms of 2/10, n/30. Meteor uses the
AVprozaik [17]

Answer:

<em><u>Requirement 1</u></em>

Purchase - March 4, 2021

Merchandise $50,000 (debit)

Liability- Trade Payable $50,000 (credit)

<em><u>Requirement 2</u></em>

Payment - March 11, 2021

Liability- Trade Payable $1,000 (debit)

Discount Received $1,000 (credit)

Liability- Trade Payable $49,000 (debit)

Cash $49,000 (debit)

<em><u>Requirement 3</u></em>

<em><u></u></em>

Payment - April 2, 2021

Liability- Trade Payable $50,000 (debit)

Cash $50,000 (debit)

Explanation:

Purchase - March 4, 2021

Recognise an Asset - Merchandise and a Liability - Trade Payable

Payment - March 11, 2021

<em>Payment has been done within the discounting period :</em>

(1). Recognise an Income - Discount Received that arise as a result of a decrease in Liability - Trade Payable to the extent of the discount granted (2%)

(2). Also de-recognise asset - cash and a liability - Trade Payable to the extend the payment has been made (98%)

Payment - April 2, 2021

<em>Payment has been done within the discounting period :</em>

(1). De-recognise asset - cash and a liability - Trade Payable to the extend the payment at 100% (the extent of amount outstanding from the purchase)

8 0
3 years ago
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Wellman Corp.
RUDIKE [14]

Answer:

Explanation:

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income  and the dividend and interest is received is recorded in this activity.

The loss and gain on sale of the assets is also recorded and amortization on intangible asset is also recorded

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

The categorization is shown below:

(1) Exchange of land for patent - Non-cash investing and financing activity as it does not involve any cash transaction

(2) Sale of building at book value - Investing activity

(3) Payment of dividends - Financing activity

(4) Depreciation - Operating activity

(5) Receipt of dividends on investment in stock - Operating activity

(6) Receipt of interest on notes receivable - Operating activity

(7) Issuance of capital stock -  Financing activity

(8) Amortization of patent - Operating activity

(9) Issuance of bonds for land - Non-cash investing and financing activity as it does not involve any cash transaction

(10) Purchase of land - Investing activity

(11) Conversion of bonds into common stock - Non-cash investing and financing activity as it does not involve any cash transaction

(12) Loss on sale of land -  Operating activity

(13) Retirement of bonds - Financing activity

7 0
4 years ago
Discuss ten (10) different purposes of an evaluation of salesperson performance and how each purpose affects the performance eva
ololo11 [35]

Answer:

1. To ensure that compensation and other reward disbursements are consistent with actual performance

2. To identify salespersons who needs to be promoted

3. To identify salespersons who should be fired/terminated

4. To determine the specific training and counseling needs of individual

5. To provide information for effective human resource (Succession) planning

6. To identify criteria that can be used to recruit and select salespersons in the future

7. To advise salespersons of work expectations

8. To motivate salespersons

9. To help salespersons set their career goals

10. To enhance effective communications between salesperson and sales manager

Explanation:

How each purpose affects the performance evaluation process

1. To ensure that compensation and other reward disbursements are consistent with actual performance

Compensation and rewards affects the performance and it should be on the merit.

2. To identify salespersons who needs to be promoted

Promotion shall be given on the basis of evaluation

3. To identify salespersons who should be fired/terminated

Termination should be on the basis of performance evaluation

4. To determine the specific training and counseling needs of individual

Training shall be provided on the basis of evaluation

5. To provide information for effective human resource (Succession) planning

Succession planning should be on the basis of performance evaluation so that the exceptional performers must be retained,

6. To identify criteria that can be used to recruit and select salespersons in the future

It helps in understanding the factors that will be useful to recruit and select salespersons

7. To advise salespersons of work expectations

On the basis of evaluation, it will be decided to communicate the work expectations

8. To motivate salespersons

It will help in understanding the factors which motivate the salespersons

9. To help salespersons set their career goals

Salespersons will understand about their future and set their career goals.

10. To enhance effective communications between salesperson and sales manager

It will help to communicate effectively about the expectations of  salesperson and sales manager  and better coordination

7 0
4 years ago
You buy an eight-year bond that has a 5.50% current yield and a 5.50% coupon (paid annually). In one year, promised yields to ma
Dovator [93]

Answer:

The correct answer is 0.02%.

Explanation:

According to the scenario, the given data are as follows:

Face Value = $1,000

Coupon rate = 5.5%

Coupon Payment = $1,000 x 5.50% = $55

Yield to Maturity = 6.50%

Time period = 7 years

So, we can calculate the holding period return by using following method:

Holding-period return = [(Coupon Payment + ( Price of bond after one year - Face value)) ÷ Face value] x 100

Where, Price of bond after one year = PV of coupon payment + PV of FV

= $55[PVIFA 6.50%, 7 Years] + $1,000[PVIFA 6.50%, 7 Years]

= [$55 × 5.48452] + [$1,000 × 0.64351]

= $945.15 ( Refer to PVIFA table)

So by putting the value in the formula, we get

= [{$55 + ($945.15 - $1,000)} ÷ $1,000] x 100

= [$0.15 ÷ $1,000] x 100

= 0.02%

5 0
3 years ago
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