1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mixas84 [53]
3 years ago
14

Martinez Corporation commenced operations in early 2020. The corporation incurred $48,500 of costs such as fees to underwriters,

legal fees, state fees, and promotional expenditures during its formation. Prepare journal entries to record the $48,500 expenditure and 2020 amortization, if any.
Business
1 answer:
igomit [66]3 years ago
7 0

Answer:

See below.

Explanation:

Since the expenses are related to the formation of the business, we first capitalize these expenses and record them in our balance sheet as,

Debit Intangible Assets (Formation) by $48,500

Credit Cash/Bank by $48,500

This records an asset for the year of operation.

We amortize or depreciate these type of capitalized costs over a defined period of time. Assuming that we write off the entire cost by the end of first year we will record amortization as,

Debit Amortization expense/Income statement by $48,500

Credit Intangible Assets (Formation) by $48,500

Hope that helps.

You might be interested in
4. Which of the following situations typically would result from an appreciating U.S. dollar relative to the
patriot [66]

Answer:

D. Americans purchase more Canadian made products.

Explanation:

The situation that would typically result from an appreciating U.S. dollar relative to the Canadian dollar is "Americans purchase more Canadian made products."

When Americans purchase more Canadian-made products, the Canadian dollar will rise or appreciate against the U.S. dollar. This is based on the principle of trade balance, whereby the monetary value of a country's imports and exports are evaluated over a given period.

In this case, the monetary value of Canadian exports against the U.S. dollar will indicate a positive trade surplus, hence, the Canadian dollar or currency will appreciate against the U.S. dollar.

5 0
3 years ago
Jared can play three musical instruments; he loves drawing, painting, and other visual arts as well. Jared can work in groups at
julsineya [31]
<span>From the descriptions given above about Jared's skills and capabilities, 
musician in a band on tour, the careers that he would most likely enjoy are music teacher at a school, life-enrichment director and event planner at a retirement home and professional photographer for special events.

</span>
3 0
3 years ago
Read 2 more answers
Quality air, a company that builds airplanes, typically orders parts for its airplanes from other companies. _______ is the prac
swat32
Outsourcing is the common practice of many companies quality air is using, also defines as <span>using suppliers outside the company to provide goods and services. Outsourcing is a practice of quality air, a company that builds airplanes, typically other parts of airplanes from other companies.</span>
3 0
3 years ago
Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
Nikolay [14]
The answer is D I hope I am right
3 0
3 years ago
If+the+central+bank+increases+the+amount+of+reserves+banks+are+required+to+hold+to+20%,+then:______.
Illusion [34]

If the central bank increases the amount of reserves banks are required to hold to 20%, then <u>both the money multiplier and </u><u>money supply</u><u> in the economy will decrease.</u>

<h3>What is Money Supply?</h3>
  • All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.
  • Governments issue coin and paper money through a mix of national treasuries and central banks.
  • By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.
  • The amount of money circulating in an economy is referred to as the "money supply."
  • Numerous money supply measurements also factor in non-cash assets like credit and loans.
  • Increases in the money supply, according to monetarists, always result in inflation.

To learn more about Money Supply with the given link

brainly.com/question/24249291

#SPJ4

3 0
2 years ago
Other questions:
  • What is gross profit? (Select the best answer.)
    10·1 answer
  • Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount
    8·1 answer
  • The night owl restaurant expects to sell 6,000 meals during the upcoming month with an average variable cost per meal sold of $6
    15·1 answer
  • The following data (in thousands of dollars) have been taken from the accounting records of Karmint Corporation for the just com
    7·1 answer
  • Joneen owns a farm. in a signed writing, joneen gave sue the irrevocable right to use a road on his farm so that sue could more
    8·1 answer
  • Jessica is investing in a capital equipment for her printing press. She wants to know how long it will take for her investment t
    8·1 answer
  • On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $600,000. For the year ended December
    8·1 answer
  • Melodyâs Piano School operations for the month of May were limited to the following transactions:1. Provided $500 of instruction
    10·1 answer
  • What is the cell membrane? ​
    11·1 answer
  • General Contracting was hired by the city of Rockyville to put in a new road through a mountain pass for $2 million. General Con
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!