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4 years ago

Consider the following situations:_________.

1 answer:

5 0

Answer: Please your question s incomplete , so i will give answers based on the twp accounting procedures for the situations

Consider the following situations to recognize the revenue

1. under accrual-basis accounting.

2. Under cash - basis accounting

Please see below for explanation.

Explanation:

Accrual- basis accounting occurs when revenue and expenses are recognized and documented when they occur usually when a company forwards an invoice to a customer irrespective of when payment is made.

cash basis accounting occurs when revenue and expenses are not recognised and documented until cash is being exchanged.

Based on Accrual- basis accounting

1. A company collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.

------- August 16

2. A customer purchases sunglasses from a company on January 27 on account. The company receives payment from the customer on February 2.

----------January 27

3. On March 30, a customer preorders 10 supreme pizzas (without onions) from a company for a birthday party. The pizzas are prepared and delivered on April 2. The company receives cash at the time of delivery.

----April 2

4. A customer pays in advance for a three-month subscription to a company on July 1. Issues are scheduled for delivery each week from July 1 through September 30.----- recorded as each issue is being delivered from july 1 through september 30

Based on cash- basis accounting

1. A company collects cash on June 12 from the sale of a ticket to a customer. The flight occurs on August 16.

----- June 12

2. A customer purchases sunglasses from a company on January 27 on account. The company receives payment from the customer on February 2.

----- February 2

-------April 2

4. A customer pays in advance for a three-month subscription to a company on July 1. Issues are are scheduled for delivery each week from July 1 through September 30.------- July 1

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Backford Company just paid a dividend yesterday of $2.25 per share. The company's stock is currently selling for $60 per sha

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Answer:

option c i.e. g=11.81%

Explanation:

growth can be obtained by using given relation:

$rate\ of\ return = \frac{D(1+g)}{current\ price} +g$

where

D IS DIVIDEND = 2.25

current price = $60

rate of return = 16%

$16= \frac{2.25(1+g)}{60} +g$

0.16= 0.0375(1+g)+ g

g=11.81%

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3 years ago

Is Which one of the following statements is correct? A. A $20bill Is a gold Certificate.B.A $20 bill is a Treasury bill. C. A $2

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the awnser is the second one

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3 years ago

On January 10 of the current year, Mary transfer to Green Corporation a machine purchased three years ago for $100,000. On the t

BaLLatris [955]

Answer:

First of all, I believe that their is a mistake on the question, since the FMV of the machine should be $100,000, not $10,000, or else it wouldn't make much sense.

a. What are the amount and character of Mary's recognized gain or loss?

ordinary income of $10,000

The two year note is considered boot and therefore, Mary must report it as ordinary income.

b. What is Mary's basis in the stock and note? When does her holding period begin?

Mary's basis in the stock is $60,000 (the basis of the machine), and $0 for the note (recognized as ordinary income). Her holding period began three years ago when the machine was purchased.

c. What are the amount and character of Green's gain or loss?

Under a carryover basis limit rule (for a section 351 exchange), Green Corporation's basis is reduced, but it not considered a loss or a gain. The basis of the exchanged stock must equal the carryover basis of the property given in exchange.

d. What is Green's basis in the machine? When does Green's holding period begin?

Same as Mary's, the basis is $60,000 and the holding period is 3 years. Since Mary owns 100% of Green Corporation as a result of the exchange, her basis and the corporation's basis will be the same.

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3 years ago

On March 1, 2019, Baltimore Corporation had 65,000 shares of common stock outstanding with a par value of $5 per share. On March

andreyandreev [35.5K]

Answer:

retained earnings 175,500

common stock 48,750

paid in excess of par 126,750

Explanation:

The diivdends are 15% so we multiply this by the shares outstanding to know the amount of shares:

65,000 x 15% = 9,750 shares

Then we multiply by the market value to know the amount needed:

9,750 x $18 market value = $175,500 stock dividends

The common stock will be 9,750 at par

and the remainder will be paid in excess.

9,750 x 5 = 48,750 CS

175,500 - 48,750 = 126,750

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4 years ago

Many of the negative effects companies have on the environment could be offset by _________ government regulation, but such regu

Alex

Answer:

Increased, Negatively

Explanation:

Government regulations are important to eliminate the negative effect of companies and industries on the overall environment. Government regulations help to apply certain restrictions which help to improve the environment and surrounding, but at the same time, it negatively affects the profitability of the companies. Overall, the government must implement policies to resolve environmental problems but such regulation should not negatively affect the industry and the economy.

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3 years ago