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Sphinxa [80]
2 years ago
5

Black and Decker decides to discontinue producing toasters in lieu of more versatile toaster ovens. In the process of discontinu

ing this line, the company disposes of the old production equipment and buys new equipment. The disposal of the old equipment would be reported in the income statement as:
Business
1 answer:
Andru [333]2 years ago
6 0

Answer:

The correct answer is Gain or loss on the sale of equipment as part of continuing operations.

Explanation:

If a gross profit on sales is generated in the process of selling an item of property, plant and equipment, but additional expenses are also incurred, the only thing that is recognized in the income statement is the net profit.

Among the accounts of the income statement, only one record is made with the net profit that occurred in the process of the sale of the asset. Although the final effect on the income statement is the same as it had under the old regulatory framework, it can be said that with that single record among the income statements, what is sought is that high gross income and expenses are not shown high, as this could distort the different financial analyzes that will be carried out at the end of the year.

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"The board of directors of Capstone Inc. declared a $0.70 per share cash dividend on its $3 par common stock. On the date of dec
Gennadij [26K]

Answer:

  • Dr Dividends Declared 12,300
  • Cr Dividends Payable 12,300

Explanation:

First we must determine how many shares are outstanding:

23,000 shares issued - 5,000 shares held= 18,000 shares outstanding

Then we multiply shares outstanding times dividends per share:

18,000 shares outstanding x $0.70 per share = $12,300

  • Dr Dividends Declared 12,300
  • Cr Dividends Payable 12,300
5 0
3 years ago
It is likely that you won’t like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you wi
faust18 [17]

Based on the amount borrowed and the term of the loan, the amount more that you will pay in total interest over the life of the loan with the 30-year mortgage is $1,079,892.

<h3>How much more interest is paid?</h3>

The total payment to be made on the 30-year mortgage is:

= 7,200.29 x 30 years x 12 months per year

= $2,592,000

Total interest paid in 30-year mortgage:

= 2,592,000 - 700,000 amount borrowed

= $1,892,000

The total payment to be made on the 15-year mortgage is:

= 8,401.18 x 15 x 12

= $1,512,212.40

Total interest paid in 15-year mortgage:

= 1,512,212.40 - 700,000

= $812,212.40

The total interest that was paid more with the 30 year mortgage than the 15 year mortgage is:

= 1,892,000 - 812,212.40

= $1,079,892

Rest of the question is:

Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 12% (APR).

Find out more on interest payments at brainly.com/question/28224394

#SPJ1

8 0
1 year ago
Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines
jek_recluse [69]

Answer:

Easton Co.'s adjusted book balance June 30 =  $72,724

Explanation:

Bank balance June 30:  $68,349        Book balance June 30:  $72,709

Deposit in transit:              $7,550        Interest earned:                     $55

<u>Outstanding checks:        ($3,175) </u>       <u>Check printing fees:            ($40)  </u>

Adjusted bank balance: $72,724       Adjusted book balance:  $72,724

3 0
3 years ago
On December 2, Year 1, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell
WITCHER [35]

Answer:

The amount of gain that Flint should recognize in its income statement for year 2 is $60,000,option A.

Explanation:

The losses recorded in January is offset against the disposal proceeds of the asset,thereby leaving a gain of $60000($90000-$30000)

The losses recorded in December of year 1 is not relevant in computing gain or loss for year 2 as the losses would have been recorded since gains and losses from discontinued operations are expected to be reported same year.

7 0
2 years ago
If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of
Nezavi [6.7K]

Based on the information given regarding the reserve requirements, there'll be an increase in the money supply by $4000.

A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.

Since the reserve requirement is 25%, a new deposit of $1,000 leads to a potential will lead to an increase in the money supply of $4000. This was calculated thus:

= $1000 / 25%

= $1000 / 0.25

= $4000

Learn more about money on:

brainly.com/question/24556197

5 0
2 years ago
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