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Lelu [443]
3 years ago
8

Madison Corporation purchased 45% of Jay Corporation for $120,000 on January 1. On June 20 of the same year, Jay Corporation dec

lared total cash dividends of $30,000. At year-end, Jay Corporation reported net income of $150,000. The balance in Madison's Equity Method Investments—Jay Corporation account as of December 31 should be:
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
4 0

Answer:

The correct answer is $175,500.

Explanation:

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

Investment value = $120,000

Acquisition Dividend = $30,000 × 45% = $12,000

Net income share = $150,000 × 45% = $67,500

So, we can calculate the balance amount by using following formula:

Balance amount = Investment value  - Acquisition Dividend + Net income share

= $120,000 - $12,000 + $67,500

= $175,500

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Answer:

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Explanation:

I listen to stray kids too:))))))))))

3 0
3 years ago
I’m thinking the 2nd answer idk<br> Help please
muminat

yes it's B even tho it could be possible its the worst example :)


4 0
4 years ago
Management estimates that 1% of the $100,000 of credit sales will be uncollectible. The Allowance for Doubtful Accounts has a $1
Vitek1552 [10]

The Adjustment entry to record the estimated bad debts include debit to Bad Debt Expense of $900 and credit to Allowance for Doubtful Accounts of $900. Thus 2nd and 5th options are correct.

<h3>What is Bad debt?</h3>

Bad Debt refers to the amount of loan which cannot be recovered. It is an outstanding balance which is irrecoverable. Thus in simply words it means the amount which will not be paid by the customer.

According to the given question, The credit balance is $100  in Allowance for Doubtful Accounts.

The credit sales method a specific percentage of credit sales represent bad debts of the previous period. Thus the difference amount comes under Allowance for Doubtful Accounts.

Journal Entry for the estimated bad debts is as follows:

DR. BAD DEBT EXPENSE                                           $900

To CR. ALLOWANCE FOR DOUBTFUL ACCOUNTS                     $900

Learn more about Bad Debt here:

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7 0
2 years ago
A stock market boom causes consumer wealth to increase which results in consumer spending to increase. This increase results in
nata0808 [166]

Answer:

10.71 %

Explanation:

The percentage change formula:

(\frac{GDP_{1} -GDP_{0} }{GDP_{0} }) 100\\percentage change = (\frac{31,000 - 28,000}{28,000} )100\\ \\=(\frac{3,000}{28,000})100\\=0.10714 * 100\\= 10.71 %

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3 years ago
Telecom company is preparing its annual cash budget. what is the best place to locate the amounts for the purchase of a new buil
RSB [31]
<span>Telecom company is preparing its annual cash budget. What is the best place to locate the amounts for the purchase of a new building? Capital expenditures budget. When a company is wanting to upgrade asset such as property and equipment they usually have money set aside for when the time comes. The money set aside is located in the capital expenditures budget. Capital expenditures budget is also known as CapEx.</span>
5 0
3 years ago
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