Answer:
Prepare journal entries for the transactions noted above.
Answer:
Credit Treasury Stock $20,000
Explanation:
When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i.e. in this case we acquire the treasury stock at a price of $20.
Cash (1,000 * 12) 12,000
Additional Paid in Capital 8,000
Treasury Stock (1,000 * 20) 20,000
Answer:
b. A deduction from net income in determining cash flows from operating activities.
Explanation:
An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.
I hope I made it clear to you. If you still have any queries, feel free to ask me.
Thanks!
Answer:
Appropriate patent amortization expense = $10 million
Explanation:
As per the data given in the question,
Annual amortization expense = Cost ÷ Time
= $36 ÷ 9
= $4 million
Year 2018 Amortization Expense 4 Years = $4 million × 4
= $16 million
Unamortized cost = $36 million - $16 million
= $20 million
Year 2018 Amortization expense 4 years = $20 million ÷ 2
= $10 million
