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4 years ago

List four common sources of funding for a small business.

1 answer:

3 0

Businesses can have many different types of funding, some are bank loans, from crowdfunding (fundraising), families and relatives, or from stocks (investing and selling). Some of the more complex types of funding include having angel investors and venture capitalists.

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The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated on June 30 and mature on June

Charra [1.4K]

Answer:

cash 967,707 debit

premium on BP 67,707 credit

Bnds Payable 900,000 credit

interest expense 58062.42 debit

premium on BP 437.58 debit

cash 58500 credit

Explanation:

procceds 967,707

face value 900,000

premium on bonds payable 67,707

first interest payment

carrying value x market rate

967,707 x 0.06 = 58062.42

then cash outlay

face valeu x bond rate

900,000 x 0.065 = 58,500

the difference will be the amortization

8 0

4 years ago

Of the principles that can be used to derive control requirements and help make implementation decisions, which principle functi

Serhud [2]

Answer:

b.accountability principle

Explanation:

Accountability principle states that a person should be responsible for their actions, products, decisions, and policies in administration and governance.

It is answerability, blameworthiness, liability, and the responsibility to give account of actions within one's jurisdiction. It entails taking ownership of consequences of one's actions.

In internal control accountability acts as a deterrent for noncompliance to laid down procedures, as each person is answerable for his failing in implementing organisation policies.

5 0

4 years ago

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $

inessss [21]

Answer:

Residual income is therefore $732,000.

Explanation:

This can be computed by following the following steps:

Step 1: Calculation of ending net book value

Particulars $'000

Beginning investment 6,900

add: Additional investment 8,100

Less: Depreciation - Other (2,850)

Ending net book value 12,150

Step 2: Calculation of Minimum required return

Minimum required return = Ending net book value * Required return rate = $12,150,000 * 12% = $1,458,000

Step 3: Calculation of profit (loss) on disposal

First year depreciation on investment = (Investment cost - Salvage value) / Useful life = ($6,600,000 - $660,000) / 3 = $1,980,000

Profit (loss) on disposal = Salvage value - Investment cost - First year depreciation on investment = $660,000 - $6,600,000 - $1,980,000 = $3,960,000 loss

Step 4: Calculation of residual income

Particulars $'000

Given operating profit of the division 6,150

Less: Loss on disposal (3,960)

Revised operating income 2,190

less: Minimum required return (1,458)

Residual income 732

Residual income is therefore $732,000.

7 0

3 years ago

What information should a public company present about revenues from foreign operations?

nevsk [136]

Answer:

Disclose unaffiliated customers sales and also the intra-company sales between geographical areas.

Explanation:

Public companies are required to disclose the amount of sales to unaffiliated customers by geographical region. At the same time, they must also disclose the intra-company sales between geographical areas. It is to be noted that the above said requirements are to be reported separately.

4 0

3 years ago

Hipster guarantees it’s snowmobiles for three years. Company experience indicates that warranty costs will be approx. 6% of sale

umka21 [38]

Answer:

Explanation:

1. The journal entries are shown below:

Cash A/c Dr $240,000 ($800,000 × 30%)

Notes receivable ($800,000 × 70%)

To Sales revenue A/c $560,000

(Being the sales is recorded)

Warranty expense A/c Dr $36,000 ($600,000 × 6%)

To Inventory A/c $36,000

(Being the warranty expense is recorded)

Warranty payable A/c Dr $32,000

To Cash A/c $32,000

(Being the warranty payment is recorded)

2. The Estimated Warranty Payable T-account is presented below

Particulars Amount Particulars Amount

Warranty expense $36,000 Beginning balance $0

Cash $32,000

Ending balance $4,000

6 0

3 years ago