Answer: $76,220
Explanation:
Total Assets = Current Assets + Fixed Assets
Current Assets = Cash + Accounts Receivable
= 13,320 + 19,980
= $33,300
Fixed Assets = Equipment = $42,920
Total Assets = 33,300 + 42,920
= $76,220
Answer:
Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.
Explanation:
The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.
On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.
This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.
Federated investors has a LOAN , with each mutual fund being managed by several portfolio managers who together take responsibility for the fund's performance.
Answer: Cash $1,960
Sales returns and allowances $800
Sales discount $40
Accounts receivable $2,800
Explanation:
Sales = $2,800
Sales returns = $800
Discount rate = 2%
The final amount due will be:
= Sales- Sales returns
= $2,800 - $800
= $2,000
Sales discount = 2% × $2,000 = $40
Cash received will be:
Final amount due - Sales discount
= $2,000 - $40
= $1,960
The journal entry will be:
Debit Cash $1,960
Debit Sales returns and allowances $800
Debit Sales discount $40
Credit Accounts receivable $2,800
Answer:
a. The total employment compensations for the two employees are the same
Explanation:
Employee compensation refers to payment made to employees by an organization in consideration for the services rendered.
Employee compensation can be in cash form such as salary and wages, perquisites, allowances, incentives, commission, etc.
In the given case,
<u>Compensation for Employee A</u>:
= Gross Pay + Employee benefits - Job expenses
= $57200 + 5300 - 800
= $ 61,700
Similarly,
Compensation for Employee B:
= Gross Pay + Employee benefits - Job expenses
= $56,900 + $6200 - $ 1400
= $61,700
Thus, employment compensation for both A and B are the same.
