Answer:
The correct option is B,common stock 30,000 cash 10,000 and building 20,000
Explanation:
Geraldine Parker's contributions to the business -that is both cash and building are seen as his capital invested in the business.Invariably, it is assumed the new business owes Geraldine Parker the worth of resources invested
Appropriate double entries for the transaction are shown below
Dr Cash $10000
Dr Building $20000
Cr Capital $30000
This is the capital as at the start of the business,it is also possible that Geraldine Parker contributes additional capital which adds to existing capital.
Also,the profits made increases the stake of the owner in the business and drawings should e deducted from the capital in case the owner withdraws cash or goods from the business.
Answer:
zero
Explanation:
The activity in this scenario is fund raising/ issue note to a bank which is booked in financing activities, not in operating activities.
Thus we can said "there's no operating activity in Madison Company cash flow of 2016" if there's no other information.
Answer:
A recession occurring in a trading partners economy
Answer and Explanation:
Respected Sir,
Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.
Regards
ABC
