Answer: B. 137,500
Explanation: since there was no provision in their agreement on how profits are to be split,
The full profit after expenses will be split/shared equally for peace sake.
ie $275,000÷2 = $137,500
Also, following Subchapter S corporation; it requires that all the owners be treated the same way in terms of their shares of the firm’s operating profits, liquidation profits, and distributions of those profits.
Explanation:
it's write tricky one...but if I get time I will solve it
Answer:
Price elasticity of demand = 1.2
Explanation:
Given:
Old price (P0) = $2
New Price (P1) = $3
Old quantity (Q0) = 4,200
New quantity (Q1) = 3,000
Price elasticity of demand = ?
Computation of Price elasticity of demand :
Price elasticity of demand = % change in quantity / % change in price
Price elasticity of demand = [(4,200-3,000)/3,000] / [(3-2)/3]
Price elasticity of demand = 1.2
Answer:
A. Dr Cash $19,250
Dr Discount on notes payable $750
Cr Notes Payable $20,000
B. Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
Explanation:
A.Preparation of the journal entry recorded by Spencer on December 1.
Dr Cash $19,250
Dr Discount on notes payable $750
($20,000-$19,250)
Cr Notes Payable $20,000
(Being a journal entry to recognize short-term note payable issued)
b. Preparation of the adjusting entry recorded by Spencer on December 31 before financial statements are prepared. Show
Since the nterest for three months is the amount of $750 which means that the Per month interest amount will be calculated as : $750/3 = $250
Dr Adjusting entries:Interest expense $250
Cr Discount on notes payable $250
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