Answer:
The journal entry should be:
Dr Investment in Leghorn Corporation XX
Cr Accounts receivable XX
Explanation:
Foghorn Company must record the noncash payment as an asset which should be equal to the amount of money that it generally would have collected from the services provided. Since the payment is done through stocks, it must record that collection as an investing account.
Since transferring stocks usually takes a couple of days at least, the original journal entry should have recorded a debit to accounts receivable and a credit to service revenue.
The expected average rate of return in the fixed asset above is 36.92%. The rate of return is the income or loss of a proposed investment in a specified amount of time. In this case, a company wants to buy a 4-year life fixed asset which can increase the company's income by $240,000. We can calculate the rate of return by dividing the net income from the investment with the proposed investment to obtain the portion of return received from the investment<span>. Formula: (Net Income From The Investment/Proposed Investment) x 100%.</span>
Answer:
Cash for $475 and Credit Card Expense for $25
Explanation:
Cash for $475 and Credit Card Expense for $25
Because the general economy takes a downturn, the company is likely to offer rebates and incentives for customers who purchase washing machines.
<h3>What are the
rebates and
incentives?</h3>
In marketing, these are techniques of marketing promotion that are used to entice, induce prospective customers.
Therefore, as the firm has expanded its capacity where the the general economy takes a downturn, it is likely to offer rebates and incentives for customers who purchase washing machines.
Read more about marketing promotion
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