Answer:
The correct option is: Debit to Loss on Disposal of Machinery for $1,500.
Explanation:
As at the time of sale, the net book value (cost - accumulated depreciation) of the copier machine was $3,500 ($6,000 - $2,500). Then, the proceed from sale is $2,000. The full accounting entries to record the transaction will be:
Debit Accumulated depreciation $2,500
Debit Cash (sales proceed) $2,000
Debit Loss on disposal of machinery $1,500
Credit Fixed asset (cost - copier machine) $6,000
<em>(To record disposal of copier machine)</em>
Answer:
e. All of the other choices
Explanation:
Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.
In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
So for any injury users have they will be liable.
If Amanda files a lawsuit against Musclematic they will have to consider:
- How this litigation will affect its goodwill
- Whether or not a settlement with Amanda is a viable option
- Whether this suit will adversely affect other business relationships
- The costs associated with litigating this claim
This is because they will most likely lose the case.
Answer:
510,000 units
Explanation:
Note: The data in the questions are merged together and they are first separated before answering the question as follows:
Beginning Inventory Ending Inventory
Raw material 52,000 62,000
Finished goods 92,000 62,000
The explanation to the answer is as follows:
Beginning inventory of finished goods + Units of finished goods manufactured = Ending inventory of finished goods + Units of finished goods sold
Units of finished goods manufactured = Ending inventory of finished goods + Units of finished goods sold - Beginning inventory of finished goods
Therefore, we have:
Units of finished goods manufactured = 62,000 + 540,000 - 92,000 = 510,000
Answer and Explanation:
1. Firms in the real estate industry have high leverage because they are capital intensive businesses, requiring higher capital for their operations and do not make profit or reach breakeven early. Therefore they are more inclined to leveraging than the share market .There is also the benefit of tax savings from debt sources
2. Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries have low leverage because they can reach breakeven or make profit early and so can rely on share market as against real estate industry.
Answer:
104,000
Explanation:
The computation of diluted earnings per share for the quarter is shown below:-
Particulars Shares
Proceeds from exercise of options a $126,000
(18,000 × $7)
Used to repurchase of common stock b $14,000
( $126,000 ÷ $9)
Number of shares if option is exercised c 18,000
Less: Shares assume repurchased d 14,000
Potential Diluted common shares (e = c-d) 4,000
Add: Number of common shares f 100,000
Number of shares diluted earning per share 104,000
(e + f)
So, to reach the Number of shares diluted earning per share we simply add number of number of common shares with potential diluted common shares.
