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3 years ago

The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:

Business

1 answer:

ivolga24 [154]3 years ago

3 0

Answer:

TNL System Journal entries

Date Description DR CR

$'million $'million

a. Feb 5 Treasury Stock 66

Cash 55

Being the purchase of own shares

b. July 9 Cash 26

Treasurt Stock 22

Paid -in- Capital -share repurchase 4

Being the resale of treasury stock

c. Nov 4 Cash 16

Paid - in-capital- share repurchase 5

Retained earnings 1

Treasury stock 22

Being the resale of treasury stock below the cost

2. Balance Sheet as at December 31, 2018

$'million

Equity

Common stock, 230 ,illion shares at $1 230

Paid-in-excess capital of par 1,830

Retained Earnings ( 1,400 - 1 -1,399) -

2,060

Treasury Stock (22)

Total Equity 2,038

Explanation:

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Which of the following characteristics differentiates a firm in an oligopolistic market from a firm in a perfectly competitive m

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Answer:

A) A firm in an oligopolistic market has to consider its own impact on price when making production decisions

Explanation:

A perfectly competitive market is a market with many firms selling identical product. There are free entry and free exist and the decision of a firm does not affect the price in the market as all firms are price takers. Therefore, each firm is independent under perfectly competitive market and production decisions of a firm in a perfectly competitive market does not affect the price in the market nor will it cause any reaction from other firms.

However, Oligopolistic market is a market where there are few firms which are 3 or more firms but not more than 20 firms selling identical or differentiated product.. Firms in oligopolistic market are interdependent which implies that the decision of one firm can affect price and this can cause reaction from other firms and then lead to a price war. A price war occurs when each firm continually reduces its own price in order to increase its market share which causes other firms to react reducing their own prices and this will make none of the firms to gain in the end. In order to avoid the price war, each firm in an oligopolistic market has to consider its own impact on price when making production decisions.

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2 years ago

Marker Corp. exchanged an old truck for a piece of equipment and cash on January 1st 2019. The truck was purchased at a cost of

LiRa [457]

Answer:

There is a 1,500 gain

Explanation:

we have commercial subtance so we can recognize gain/loss

these will be the numebrs of the transaction:

truck

purchase 24,000

acc depreciation 17, 000

book value 7, 000

equipment 8,000

cash 500

total 8,500

received - given up = gain/loss

8,500 - 7,000 = 1,500 gain

the journal entry would be

Equipment 8,000 debit

cash 500 debit

acc dep truck 17,000 debit

Truck 24,000 credit

gain on disposal 1,500 credit

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3 years ago

Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining foun

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The answer in the space provided is the buyback clause. The buyback clause is a sort of contract that has provision in which the seller has rights of having to purchase his or her own property with the use of rules or conditions.

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3 years ago

When Hope Springs Water Co. was looking to complete the _________ phase of the new product development process, the company coul

My name is Ann [436]

Answer:

Idea generation

Explanation:

Based on the information provided within the question it seems that the phase that is being described is the Idea generation. This phase refers to the process creating new approaches for finding solutions to existing problems or creating new ideas/products. This phase requires a lot of research, input, and data analysis from many sources in order to generate the best ideas that will make the help the company succeed.

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3 years ago

Nutritional Foods reports merchandise inventory at the lower of the cost or market. Prior to releasing its financial statements

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Answer:

1. Debit Cost of goods sold $5,000

Credit Inventory account $5,000

Being entries to write down merchandise inventory to its realizable amount.

2. Revised partial Income statement

Amount

Sales revenue $121,000

Cost of goods sold ($54,000 )

Gross Profit $67,000

Explanation:

According to IAS 2 inventories, Inventory is initially be recognized at the cost of purchase (which includes the cost of the item and other associated cost such as freight)

Subsequently, inventory would be measured at the lower of cost or net realizable value.

As such, whenever the cost is higher than the net realizable value, the cost of the inventory will be written down by

Since the current replacement cost of ending merchandise inventory is $16000 and the Cost is $21000.

Amount to be written down

= $21000 - $16000

= $5,000

To adjust for this,

Debit Cost of goods sold $5,000

Credit Inventory account $5,000

Total amount in cost of goods sold = $49,000 + $5,000

= $54,000

Revised partial Income statement

Amount

Sales revenue $121,000

Cost of goods sold $54,000

Gross Profit $67,000

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3 years ago