URGENT!!!

True or False. Expense for a quality-assurance warranty is recorded along with the related liability in the reporting period in

Novosadov [1.4K]

Answer:

True

Explanation:

Whenever a company sells products that may generate warranty expenses, it must estimate the warranty expenses associated with the products sold.

It must credit a warrant liability account, and as the warrant claims are made, the company must debit a warranty expense account.

5 0

3 years ago

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

Galina-37 [17]

Answer and Explanation:

The Preparation of statement of stockholders’ equity is shown below:-

Statement of Stockholder's Equity

Power Drive Corporation

For the year ended December 31, 2018

Particulars Common Additional Retained Treasury Total

stock paid in Earning Stock Stockholder

capital equity

Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000

Issued common

stock 58,000 $3,132,000 0 0 $3,190,000

(58,000 × $1) (58,000 × $54)

Purchase treasury

stock -$307,400 -$307,400

(5,300 × $58)

Dividends -$251,955 -$251,955

((100,000 + 58,000 - 5,300) × $1.65)

Sale of Treasury

stock $13,250 $153,700 $166,950

(2,650 × $5) (2,650 × $58)

Net Income $630,000 $630,000

Balance,

December

31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595

Total Stockholder's equity is

= Common stock + Additional paid in capital + Retained earnings - Treasury stock

= 158,000 + $7,945,250 + $2,678,045 - $153,700

= $10,627,595

8 0

3 years ago

Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's

lesantik [10]

Answer:

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

A reduction of $40,000 in E&P because of the exchange.

7 0

3 years ago

Hiring decisions at Maarja's Razors are made by Maimu Maarja, the Director of Human Resources. Pay rates are approved by the Vic

barxatty [35]

Answer:

Effective

Explanation:

Segregation of duties (SOD) is an essential part of the effectiveness of internal controls for any business. This integral separation ensures that key processes are performed by more than one person to prevent fraud or financial misstatement. While technology continues to become more sophisticated, the time is now to implement controls that segregate key functions within processes such as cash disbursements, investments, payroll, and many other areas.

Maarja's Razors is implementing effectively the segregation of duties. Key processes are performed by more than one person, and this helps in flexibility of operations.

4 0

3 years ago

Read 2 more answers

An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the

german

Answer:

79.5%.

Explanation:

Rate of return = $\frac{final value - initial value}{initial value}$ x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

= $1225

Net value of cost = $12700 + $1225

= $13925

Net value of the land when sold = $25000

∴ Rate of return = $\frac{25000 - 13925}{13925}$ x 100

= 0.7953 x 100

= 79.53%

The rate of return of the acre of land is 79.5%.

7 0

3 years ago