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3 years ago

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Earning revenue ____________________ a. decreases assets, increases liabilities b. increases assets, decreases stockholders' equ

ity c. increases one asset, decreases another asset d. increases assets, increases stockholders' equity

1 answer:

guajiro [1.7K]3 years ago

3 0

Answer:

d. increases assets, increases stockholders' equity

Explanation:

The journal entry for earning revenue is shown below:

Cash A/c Dr. XXXXX

To Sales revenue A/c XXXXX

(Being revenue is earned)

Since the revenue is earned so we debited the cash account which increases the asset balance and credited the sales revenue account which increases the stockholders' equity balance.

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Panner, Inc., owns 35 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $

ziro4ka [17]

Answer: $2289

Explanation:

First, we have to calculate the gross percentage which would be:

= (Revenue - Cost of goods sold) Revenue

= ($124000 - $86800) / $$124000

= 30%

Therefore, the amount of gross profit must Panner defer in reporting this investment using the equity method would be:

= ($21800 × 30%) × 35%

= $21800 × 0.3 × 0.35

= $2289

6 0

3 years ago

Price discrimination is possible when a firm is able to ______.

irina1246 [14]

Answer:

d. identify and separate different types of buyers, and sell a product that cannot be resold

Explanation:

Segmenting the market into different groups is a way to charge varying prices. Each group has their own demand curve.

4 0

3 years ago

Read 2 more answers

Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 100 per direct manufact

katen-ka-za [31]

Answer:

total product costs = $101750

Explanation:

given data

overhead costs = $ 100

Direct materials of $41,000

direct manufacturing labor = 450

per hour = $35

markup rate = 30 %

solution

we get here total product costs that is express as

total product costs = Direct materials + DML + MOH ..........1

total product costs = $41,000 + ( 450 × $35 ) + ( 450 × $100 )

total product costs = $41,000 + $15750 + $45000

total product costs = $101750

4 0

3 years ago

Consider the following items: • Land • Accounts Receivable • Notes Payable (due in three years) • Accounts Payable • Retained Ea

sashaice [31]

Answer:

Land, Building and equipment

Explanation:

As we know that

Total assets include current assets, fixed assets and intangible assets Current assets involve cash, stock, account receivables, etc. Fixed assets comprise plant & machinery, property, equipment, furniture & fittings, etc.

So according to the given situation, the land, building and the equipment is considered generally as a long term asset

4 0

3 years ago

MGM Resorts Incorporated is expected to grow at an exceptionally high rate over the next 2 years due to the success of Macau cas

Burka [1]

Answer:

The value of a share of MGM Resorts stock today will be $16.42

Explanation:

In order to calculate the value of a share of MGM Resorts stock today we would have to calculate the following steps:

Step-1, Dividend for the next 2 years

Dividend per share in Year 0 (D0) = $1.20 per share

Dividend per share in Year 1 (D1) = $1.4400 per share [$1.20 x 120%]

Dividend per share in Year 2 (D2) = $1.7280 per share [$1.4400 x 120%]

Step-2, Share Price in Year 2

Dividend Growth Rate after Year 2 (g) = 4.00% per year

Required Rate of Return (Ke) = 14.00%

Share Price in Year 2 (P2) = D2(1 + g) / (Ke – g)

= $1.7280(1 + 0.04) / (0.14 – 0.04)

= $1.7971 / 0.10

= $17.97 per share

Step-3, The Current Stock Price

As per Dividend Discount Model, Current Stock Price the aggregate of the Present Value of the future dividend payments and the present value the share price in year 2

Year Cash flow ($) PVF at 14.00% Present Value of cash flows ($)

[Cash flows x PVF]

1 1.4400 0.877193 1.26

2 1.7280 0.769468 1.33

2 17.97 0.769468 13.83

TOTAL 16.42

Hence, the value of a share of MGM Resorts stock today will be $16.42

6 0

3 years ago