Answer:
$2,600
Explanation:
The computation of the balance of Retained Earnings at the end of 2018 is shown below;
= net income - dividend
= $1,200 - $500 + $2,300 - $200 - $0 - $200
= $2,600
We simply deduct the dividend amount from the net income so that the balance of the retained earning could come
A contract is a legal document between partners.
Answer: 1. Goodwill
2. a. Record no entry in the books
b. Record a loss in the books
Explanation:
1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.
Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).
2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this <u>gain</u> on the books.
b. If the value of the asset has decreased, Heartland should record a loss in the books to represent the loss on this account.
Answer:
$280
Explanation:
The computation of the overhead assigned is shown below:
But for that, first we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= ($35,000) ÷ (5,000 direct labor hours)
= $7 per direct labor hour
Now the overhead assigned is
= 40 direct labor hours × $7 per direct labor hour
= $280
Answer: False
Explanation: The aim of product development strategy is to improve the existing product or bring more efficiency in the existing market. Product development strategy works in the existing market or on the existing product.
The emphasis of these strategies is to bring improvement in the market through innovation and new ideas.
Hence, the statement is false.