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2 years ago

The original capital that you deposit or invest is called the

Business

2 answers:

bonufazy [111]2 years ago

5 0

I think that it's either C or D but i'm going to go with D but if that's not the correct awnser is C

Mice21 [21]2 years ago

5 0

Answer:

The correct answer is option B) principal.

Explanation:

At the time of making an investment, we will have an initial amount of capital. This is called principal.

This capital money will be part of our asset, but will not include accrued profits or interests. In other words, it will be what we put into our investment before knowing if we will have profits or losses.

For example, if we start an investment with $ 10,000 and after several years we have $ 18,000, our profit will be $ 8,000 and the principal will remain $ 10,000.

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Zeta Co. reported sales revenue of $4,600,000 in its Income Statement for the year ended December 31, 20X1. Additional informati

Black_prince [1.1K]

Answer:

Zeta would have reported 20X1 sales of $4,280,000.

Explanation:

Note: the additional information in the question is correctly represented before answering the question as follows:

12/31/X0 12/31/X1

Accounts receivable $1,000,000 $1,300,000

Allowance for uncollectible accounts (60,000) (110,000)

The explanation of the answer is now given as follows:

Since sales is equal to cash collections under the cash basis of accounting, cash collected on accounts receivable can therefore be calculated as follows:

Ending balance = Beginning balance + Sales − Collections − Write-offs ......... (1)

Where;

Ending balance = $1,300,000

Beginning balance = $1,000,000

Sales = $4,600,000

Collections = ?

Write-offs = $20,000

Substituting the values into equation (1) and solve for collections, we have:

$1,300,000 = $1,000,000 + $4,600,000 − Collections − $20,000

Collections = $1,000,000 + $4,600,000 − $20,000 - $1,300,000

Collections = $4,280,000

Therefore, Zeta would have reported 20X1 sales of $4,280,000.

7 0

2 years ago

A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be

Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0

3 years ago

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. F

TiliK225 [7]

Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.

4 0

3 years ago

What are some subject areas PAS prepares students for? Check all that apply. health science hospitality agricultural machinery i

butalik [34]

agricultural machinery

landscape design

food science

-WiseQueen

5 0

3 years ago

Read 2 more answers

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common

Vikentia [17]

Answer:

1.$92.4million

2. January 1, 2021

No journal entry

3. December 31, 2021

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

4. December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

5. December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

6. December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

Explanation:

1. Calculation to determine the total compensation cost pertaining to the RSUs

Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted

Total compensation cost=$92.4million

Therefore the total compensation cost pertaining to the RSUs is $92.4million

2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021

January 1, 2021

No journal entry

3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021

December 31, 2021

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

($92.4million-$22 million)

6 0

2 years ago