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Dimas [21]
3 years ago
5

: Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000. After E

ffie made the first required payment, it ceased making other payments. The stock subscription agreement states that Effie, thus, forfeits its payments and is entitled to no other future consideration. How should Narda record the $200,000 forfeited payment
Business
1 answer:
Gnoma [55]3 years ago
8 0

Answer:

Since Effie Corporation forfeited their stock subscription, then they will lose their stocks and the money they invested in Narda Corporation.

In this case, Narda was being completely acquired by Effie Corporation and the whole operation went down, then the initial payment must be recorded as additional paid in capital. It should not be included as part of operating income since it wasn't a normal business activity.

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5 0
3 years ago
If a director usurps an opportunity that is in the corporation's lines of business for themselves without first disclosing the o
Rudik [331]

Answer:

Corporate opportunity doctrine

Explanation:

The corporate opportunity doctrine is a principle that doesn't allow directors to participate as an individual in any business that can benefit the company withouth offering it first to the organization.

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3 years ago
I need help brainstorming ideas for my innovation class.
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Answer:

ayúdame por favor

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3 years ago
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the sal
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4 0
3 years ago
Oriole Company has the following transactions related to notes receivable during the last 2 months of the year. The company does
NikAS [45]

Answer:

See explanation

Explanation:

Nov. 1   Notes receivable - C. Bohr        Debit        $52,200

            Cash                                            Credit       $52,200

To record the loan provided to C. Bohr issuing a 7%, 12-month note.

Dec. 11  Notes receivable - K. R. Pine     Debit        $1,800

            Sales revenue                            Credit        $1,800

To record the sales revenue by issuing a 8%, 90-day note.

Dec. 16  Notes receivable - A. Murdock           Debit        $4,800

             Accounts receivable - A. Murdock     Credit        $4,800

To record the settlement of an open account by issuing a 180-day, 10% note.

Dec. 31   Interest Receivable           Debit       $681 (Note - 1)

              Interest Revenue               Credit      $681

To record the interest revenue accrued on December 31.

Calculation:

November 1 Interest from C. Bohr =  $52,200 × 7% × (2÷12) = $609

December 11 Interest from K. R. Pine = $1,800 × 8% × (20÷90) =  $32

December 16 Interest from A. Murdock = $4,800 × 10% × (15 ÷ 180) = $40

Total Interest = $681

5 0
3 years ago
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