J. Cole Went Platinum With No Features

The first item appearing on the statement of owner's equity is Select one: a. net income b. the ending balance of owner's equity

nadya68 [22]

Answer:

The correct answer is letter "D": the beginning balance of owner's equity.

Explanation:

The statement of owner's equity reports the changes in a company's capital balance during a certain period. Thus, the transactions that increased or decreased stakeholder's equity is portrayed in this section. In the statement of owner's equity, the income earned during the current period is added to the beginning capital balance and the owner's equity withdrawals are deducted.

<em>The statement of owner's equity shows at its head the Beginning equity balance -initial money invested in the company over a period.</em>

8 0

3 years ago

Which of the following statements is correct? Managers will be more likely to pursue projects that will benefit the entire compa

PilotLPTM [1.2K]

Answer:

A.Incorrect

B. Incorrect

Explanation:

a) A manager might reject a proposal using ROI that the manager would accept using residual income

The statement is incorrect. The reverse is true. Using ROI entails the manager comparing the ROI after a project to the ROI before, where implementing a project makes the ROI after to be less than what it before the project, the Manager would most likely not implement the project. This would happen notwithstanding that the project produces positive residual income.

b) Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income.

This statement is incorrect. ROI makes the manager to pursue his own interest and that of its division at the expense of the group objectives. It leads to sub-optimal decision

3 0

3 years ago

The following information applies to the questions displayed below.

zhenek [66]

Answer:

Lobo Co.

Journal Entries:

Nov. 11 Debit Cash $7,875

Credit Sales Revenue $7,875

To record the sale of 105 razors for cash.

Nov. 11 Debit Cost of Goods Sold $2,100

Credit Inventory $2,100

To record the cost of goods sold for 105 razors at $20 each.

Dec. 16: Debit Cash $16,500

Credit Sales Revenue $16,500

To record the sale of 220 razors for cash.

Debit Cost of Goods Sold $4,400

Credit Inventory $4,400

To record the cost of goods sold.

Jan. 5: Debit Cash $11,250

Credit Sales Revenue $11,250

To record the sale of 150 razors for cash.

Debit Cost of Goods Sold $3,000

Credit Inventory $3,000

To record the cost of goods sold.

Adjusting Journal Entries:

Nov. 30: Debit Warranty Expense $630

Credit Warranty Liability $630

To record the warranty expense for November sales.

Dec. 9: Debit Warranty Liability $300

Credit Inventory $300

To replace 15 razors.

Dec. 16: Debit Warranty Expense $1,672

Credit Warranty Liability $1,672

To record the warranty expense for December sales.

Dec. 29: Debit Warranty Liability $600

Credit Inventory $600

To replace 30 razors.

Dec. 31: Debit Income Summary $2,302

Credit Warranty Expense $2,302

To recognize the warranty expense for the period.

Jan. 5: Debit Warranty Expense $900

Credit Warranty Liability $900

To record warranty expense for January sales.

Jan. 17: Debit Warranty Liability $1,000

Credit Inventory $1,000

To record the replacement of 50 razors.

Jan. 31: Debit Warranty Expense $100

Credit Warranty Liability $100

To recognize warranty expense for January sales.

2. The Warranty Expense for November is $630 and for December is $1,602.

3. The Warranty Expense for January is: $1,000

4. The balance of the Estimated Warranty Liability account as of December 31 is:

= $1,402

5. The balance of the Estimated Warranty Liability account as of January 31 is:

= $1,302

Explanation:

a) Data and Calculations:

Cost per new razor = $20

Retail selling price = $75

Expected warranty costs = 8% of dollar sales

b) Estimated Warranty Liability Account:

Nov. 30: Credit Warranty Liability $630

Dec. 9: Debit Warranty Liability ($300)

Dec. 16: Credit Warranty Liability $1,672

Dec. 29: Debit Warranty Liability ($600)

Dec. 31: Balance $1,402

Jan. 5: Credit Warranty Liability $900

Jan. 17: Debit Warranty Liability ($1,000)

Jan. 31 Balance $1,302

Warranty Expense Account:

Nov. 30: Debit Warranty Expense $630

Dec. 16: Debit Warranty Expense $1,672

Dec. 31: Debit Income Summary $2,302

Jan. 5: Debit Warranty Expense $900

Jan. 31: Debit Warranty Expense $100

Jan. 31: Debit Income Summary $1,000

5 0

3 years ago

Ashton wants to generate interest in the new branch of his hobby stores that is opening next week. He plans to offer temporary p

faust18 [17]

Answer:

B. Price promotion

Explanation:

Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.

Price promotion is the combination of two words "price" and "promotion".

Price refers to the amount of money paid by consumers to purchase goods and services.

Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.

Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.

3 0

3 years ago

Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a

meriva

Answer:

The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

Explanation:

Even as the bank offers Sun Inc. with a factoring limit, the accounts receivables are still in the firm's accounting book. The firm has the obligations to go after their debtors for collections. The account receivables are transferred to creditors when a company becomes defaulted or bankrupted.

7 0

3 years ago