Answer:
1. Cash in hand and at bank balance
2. Is there land and buildings available
3. Are there any accumulated debt owed by the church
4. Collections or record of church document.
Explanation:
1. Cash in hand and at bank balance. This an example of a current asset. The first question is how much does the church have as cash and bank balance. The reason is to ascertain whether the fund will be sufficient for the new building project.
2. Land and Buildings availability. This is a fixed asset. The board would enquire whether there is an already existing building or land with which to begin the building project.
3. Debt or loan owed by the church. Loan forms part of liability in a balance sheet. Another question to be asked is whether the church is indebted to a bank or financial institution. This will determine whether or not to continue with the building project.
4. Record of church document. Does the church have any existing document with which to support the new building? This is pertinent as to begin or abandon the plan to build a new church.
Answer:
Four (4)
Explanation:
The normal balances of the listed accounts are as follows.
Accounts Payable: credit balance
Cash: debit balance
Prepaid Rent: debit balance
Common Stock: credit balance
Salaries Payable: credit balance
Equipment: debit balance
Supplies: debit balance
Rent Expense: debit balance
Four of the eight accounts have credit balances.
Answer:
$56,667
Explanation:
Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.
The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.
To calculate the Diluted Earnings per share,
40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.
Answer:
Price per share of preference share = $25
Explanation:
Preference dividend is generally fixed, and does not change as there is a standard rate prescribed at the time of issue of preference shares.
Provided here is, dividend for preference shares = $2
Expected return each year = 8%
Expected growth = 0%
Thus, cost or price per share of preference stock = Dividend/Expected Return = $2/8% = $25 each share.
Answer:
a. Cash paid to suppliers of merchandise during the reporting period: $44.1 million
b. A summary entry that represents the net effect of merchandise purchases during the reporting period as below:
Dr Cost of goods sold 44,000,000
Dr Inventory 6,700,000
Cr Account Payable 6,600,00
Cr Cash 44,100,000
Explanation:
We have the total amount goods buying from the supplier in the period = Cost of good sold in the period + Difference in the inventory balance of the period = $44 million + $6.7 million = $50.7 million
Thus, the additional amount owed supplier in the period is $50.7 million.
Account Payable increased by 6.6 million, it means that only 44.1 million ( that is, 50.7 million - 6.6 million) is paid during the period.
Thus, the summary will represents: Increase in COGS 44 million ( given); Increase in Inventory 6.7 million (given); Increase in account payable 6.6 million ( given) and Decrease in Cash 44.1 million ( calculated above).
