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k0ka [10]
3 years ago
8

Pinnacle Financial Services managers meet annually to create a list of potential future complications and plan how to respond to

each possibility. Pinnacle is practicing _______ planning. single-use ad-hoc divisional-level contingency functional-level
Business
1 answer:
Virty [35]3 years ago
7 0

Answer: contingency

Explanation:

Contingency planning is a form of planning that is used by an organization in order to plan ahead in case an event occurs. Contingency plans can also be called a 'Plan B' due to the fact that it's an alternative action in case things does not go as planned.

Therefore, based on the question, Pinnacle is practicing contingency planning.

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Sage, Inc. had net sales in 2017 of $1,432,200. At December 31, 2017, before adjusting entries, the balances in selected account
Serjik [45]

Answer:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

Explanation:

At December 31, 2017,

Bad debts is estimated:

8% x $325,000 = $26,000

Before adjusting, Allowance for Doubtful Accounts $3,000 credit. The company use aging method to estimate bad debts expense and Allowance for Doubtful Accounts. Bad debts expense amount will be record:

$26,000 - $3,000 = $23,000

The Journal entry:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

4 0
3 years ago
A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the
Alenkinab [10]

Answer:

A. An operating expense.

Explanation:

Since in the question it is mentioned that the self insurance activity i.e. accounted for an internal service fund that paid the amount of $365,000. Also as we know that the internal service fund is a proprietary fund so the claim should be reported as an operating expenses in the revenues, expenses and change in net asset statement

Therefore the correct option is a.

8 0
3 years ago
Closing Entries with Net Income Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has
Mademuasel [1]

Answer:

a. Debit Teresa's Capital account for $770,000; and Credit Teresa's Drawing account for $770,000.

b. Teresa Schafer, Capital at the end of the period is $$1,955,000

Explanation:

a. Journalize the entry required to close the Teresa Schafer, Drawing account.

Since the drawing will affect capital by reducing it, the journal entry will look as follows:

<u>Particulars                                          Dr ($)                  Cr ($)         </u>

Teresa's Capital account              770,000

Teresa's Drawing account                                        770,000

<em><u>(To record the closing the Teresa Schafer, Drawing account.)       </u></em>

b. Determine the amount of Teresa Schafer, Capital at the end of the period.

To do this, we have to calculate the net profit first as follows:

Net profit = Total revenue - Total cost = $3,190,000 - $2,350,000 = $840,000

Since net profit will increase capita while drawing will reduce capital, we therefore have:

Capital at the end of the period = Capital + Net profit - Drawing = $1,885,000 + $840,000 - $770,000 = $1,955,000.

Therefore, Teresa Schafer, Capital at the end of the period is $$1,955,000.

7 0
4 years ago
If all bloops are razzies and all razzies are lazzies, then are all bloops definitely lazzies?
konstantin123 [22]
TRUE-
<span>If all bloops are razzies, you can put the bloops entirely inside the razzie set, and if all razzies are lazzies you can safely put the razzie blob entirely inside the lazzie set. It makes the whole thing a lot easier to visualize.</span>

5 0
3 years ago
The Coca-Cola Company owns 32 percent of the voting stock of Coca-Cola FEMSA, acquired at book value. Assume that Coca-Cola FEMS
hichkok12 [17]

Answer:

December 31, 2013, revenue from investment in Coca Cola FEMSA

Dr Investment in Coca Cola FEMSA 1,635,000

    Cr Investment revenue 1,635,000

Explanation:

Under the full equity method, when Coca Cola FEMSA reports net income, the investment account will increase in a proportional way, and that increase is considered investment revenue.

E.g. Coca Cola Company owns 32% of stocks and reported net income is $5,000,000, so investment revenue = $5,000,000 x 32%  = $1,600,000

But we must also include any realized/unrealized profits on intercompany transactions:

realized profits = markup x January 1 inventories = 35% x ($1,350,000 - $1,350,000/1.35) = $350,000

unrealized profits =  markup x December 31 inventories = 35% x ($1,215,000 - $1,215,000/1.35) = $315,000

total investment revenue = % of net income reported + realized profits - unrealized profits = $1,600,000 + $350,000 - $315,000 = $1,635,000

The journal entry should be:

December 31, 2013, revenue from investment in Coca Cola FEMSA

Dr Investment in Coca Cola FEMSA 1,635,000

    Cr Investment revenue 1,635,000

3 0
3 years ago
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