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3 years ago

When the concept of conservation is applied to the balance sheet, it results in (

1 answer:

6 0

I think the correct answer from the choices listed above is option B. When the concept of conservation is applied to the balance sheet, it results in <span>understatement of capital. Hope this answers the question. Have a nice day. Feel free to ask more questions.</span>

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The following selected accounts from the Pina Colada Corp.â€™s general ledger are presented below for the year ended December 31

Snowcat [4.5K]

Answer:

Pina Colada Corp.

Multi-step Income Statement for the year ended December 31, 2017:

Sales revenue $2,304,000

Sales returns and allowances 39,360

Net Sales 2,264,640

Cost of goods sold 1,041,600

Gross profit 1,223,040

Rent revenue 23,040

Gross operating revenue 1,246,080

Depreciation expense 120,000

Salaries and wages expense 648,000

Freight-out 24,000

Advertising expense 52,800

Sales discounts 8,160

Insurance expense 14,400

Total operating expenses 867,360

Operating income (EBIT) $378,720

Interest revenue 28,800

Interest expense (67,200)

Income before taxes $340,320

Income tax expense 67,200

Net income $273,120

Retained earnings 513,600

Dividends (144,000)

Retained earnings, Dec. 31, 2017 $642,720

Explanation:

a) Data and Calculations:

December 31, 2017:

Common stock 240,000

Retained earnings 513,600

Inventory 64,320

Sales revenue 2,304,000

Sales returns and allowances 39,360

Rent revenue 23,040

Interest revenue 28,800

Cost of goods sold 1,041,600

Depreciation expense 120,000

Salaries and wages expense 648,000

Freight-out 24,000

Advertising expense 52,800

Sales discounts 8,160

Insurance expense 14,400

Interest expense 67,200

Income tax expense 67,200

Dividends 144,000

8 0

3 years ago

What strategy was avon pursuing until the mid-2000s? what were the advantages of this strategy? what were the disadvantages?

LenaWriter [7]

Avon used Direct Sales Model Strategy until the mid-2000s. It is a method wherein the business's own employees are in direct contact with buyers as they sell their products.

The advantages of direct sales model are:
1) strong customer relations
2) coordination with other effective business strategies
3) price and cost control
4) access to more customers

The disadvantages of direct sales model are:
1) more expensive compared to other marketing strategy
2) time consuming during sales calls or talks.
3) can be inconvenient or intrusive to clients or consumers.

8 0

3 years ago

Flint Corporation commenced operations in early 2020. The corporation incurred $58,500 of costs such as fees to underwriters, le

Alekssandra [29.7K]

Answer and Explanation:

The journal entry is shown below:

1. Organization expense Dr $58,500

To cash $58,500

(Being organization expense is recorded)

Here organization expense is debited as it increased the expenses and credited the cash as it decreased the assets. Also the assets and expenses contains normal debit balance

2. No entry is required as the amortization is recorded for only intangible assets

6 0

3 years ago

The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expec

Igoryamba

Answer:

$4,908,000

Explanation:

The computation of accumulated depreciation expense for this purchase is shown below:-

Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)

= (($40,900,000 - $4,090,000) ÷ 15) × 2

= $36,810,000 ÷ 15 × 2

= $4,908,000

Therefore for computing the depreciation expense we simply applied the above formula.

6 0

3 years ago

indicators that the local currency is also the functional currency include all of the following except:

Alchen [17]

Indicators that the local currency is also the functional currency include all of the following except the parent typically provides the financing or provides a guarantee.

A functional currency is one that is utilized in the main economic setting in which a company conducts business. This is the setting in which an entity generates and spends money most frequently. When defining the functional currency of an entity, the following key considerations should be taken into account:

The principal currency influencing retail prices (usually the currency in which prices are denominated and settled).

The money of the nation whose laws and competition have the biggest impact on retail pricing.

The principal currency affecting labor expenses and other costs of goods sold (usually the currency in which prices are denominated and settled).

The currency in which an entity keeps its operating receipts and the currency in which debt and equity instruments are issued are less important deciding factors.

Know more about functional currency here:

brainly.com/question/28013130

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6 0

1 year ago