Answer:
$500 credit
Explanation:
Given that
Number of authorized shares = 1,000 shares
Stated value per share = $10
Issued shares = 50 shares
Initial offering = $20 per share
So based on above information, the journal entry is
Cash $500 (50 shares × $10)
To Common stock $500
(Being the common stock is issued is recorded)
While recording this transaction we debited the cash account as it increased the asset side and credited the common stock as the equity is increased so that the proper posting could be done
Answer:Option A
Explanation:
Auditing is an independent examination of the financial statement of an audit client to express a true and fair view on the statement examined.
Investigation is a much deeper aspect of auditing that wants to examine a particular aspect of in organization for example theft of cash, insurance claim etc.
The Auditor is only to report to the Board of Directors i.e the Engagement Officer.
The internal auditor must be concerned about the possibility of inclusion of a statement for which the accused employee could use to sue the organization. It becomes imperative for a draft of the proposed final communications on fraud should be submitted to legal counsel for review to prevent further liabilities for the organization.
The loan that offers the lowest interest rate is federal student loan. Payday loan and private loan have higher interest rate relatively which can increase the future worth of the money borrowed. if the interest would have been lower, then the future worth or the money to be paid in the future would be less
Answer:
Under the allowance method writing of uncollectible account will only affect Balance sheet accounts
Explanation:
Uncollectibles when write of under allowance method will create reduce account receivable one side and also results in reduction of allowance for receivable on other side created previously, thus having impact only on balance sheet:
Entry will be:
Dr: Allowance for Doubtful Debts (Balance Sheet Item)
Cr: Account Receivable (Balance Sheet Item)
Answer:
Contribution per unit of scare resource (in hour) = $24 per hour
Explanation:
The question falls under the limiting factor analysis
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>
Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.
Contribution per unit of scare resource is determine as follows:
Contribution per unit of scare resource for Model K-3
Contribution per unit of Model K-3 = $6
Machine time per unit = 15 minutes
<em>Contribution per unit of scare resource in minutes</em>
=Contribution per unit/Machine time per unit
= 46/15 minutes
= $0.4 per minute
Contribution per unit of scare resource (in hour)
$0.4 per minutes× 60
= $24 per hour
