Answer:
Journal Entries
Dr. Investment in Lopez Railways Inc. $600,000
Cr. Cash $600,000
Dr. Investment in Lopez Railways Inc $59,600
Cr. Income of Investment in Lopez Railways Inc $59,600
Dr. Cash $10,800
Cr. Investment in Lopez Railways Inc $10,800
Explanation:
As Windsor Locomotive Corporation has purchased 40% interest in Lopez Railway Inc.Lopez Inc. is classified as the associate company of Windsor Corp.
Share in net Income = $149,000 x 40% = $59,600
Share In Dividend = $27,000 x 40% = $10,800
Answer:
Annual depreciation= $189,600
Explanation:
Giving the following information:
On January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be 62000.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,010,000 - 62,000)/5= $189,600
Answer:
b. investing activities
Explanation:
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.
Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.
<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
Given that we want us to be in a healthy cash position at the end of the year.
We are require to find the way how can we will be in a healthy cash position at the end of the year.
A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.
Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
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Answer:
Option D. management estimates the amount of uncollectibles
Explanation:
When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.
When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.
