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4 years ago

An American fast-food chain that moves into Canada by buying an existing Canadian fast-food chain represents

Business

1 answer:

Hitman42 [59]4 years ago

3 0

Answer: Option C

Explanation: In simple words, an equity wholly owned subsidiary refers to the company which has a separate legal entity but the ownership rights of which, in form of common stock, remains in the hand of some other company that is called its parent company.

A company holding more than 50 percent stock go another will be termed as parent company but the operations of subsidiary and parent company will be different.

In the given case, American company purchased an existing Canadian chain means they purchased majority shares in the company leading to equity wholly owned subsidiary.

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An _________________ is calculated by subtracting the firm's costs from its total revenues, _______________________. Group of an

solmaris [256]

Answer:

An accounting profit is calculated by subtracting the firm's costs from its total revenues, excluding opportunity cost

8 0

2 years ago

1. If Yak uses the percent of sales method, Bad Debt Expense on the October 2020 Income Statement will be:

tensa zangetsu [6.8K]

Answer:

1. $19,000

2. $16,000

3. $30,200

Explanation:

Complete question "The Accounts Receivable balance for Yak Corporation is $82,000 at October 31, 2020. Before calculating and recording October 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $3,000. Sales for the month are $950,000. An aging of accounts receivable results in a $17,200 estimate for the Allowance for Doubtful Accounts as of October 31, 2020. In the past several years, 2% of sales have proven uncollectible.

1. If Yak uses the percent of sales method, Bad Debt Expense on the October 2020 Income Statement will be?

2. If Yak uses the percent of sales method, the Allowance for Doubtful Accounts reflected on the October 31, 2020 Balance Sheet will be?

3. If Yak uses the analysis of receivables method, Bad Debt Expense on the October 2020 Income Statement will be:

1. Bad debt expenses = Sales * 2% of sales have proven uncollectible

Bad debt expenses = $950,000 * 2%

Bad debt expenses = $19,000

2. Allowance for doubtful account balance = Bad debt - Beginning Debit balance

Allowance for doubtful account balance = $19,000 - $3,000

Allowance for doubtful account balance = $16,000

3. Bad debt expenses = Ending Doubtful Accounts balance - Beginning debit balance

Bad debt expenses = $17,200 + $3,000

Bad debt expenses = $30,200

7 0

3 years ago

Kingbird, Inc. issues $250,000, 10-year, 6% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1,

Luden [163]

Answer:

Kingbird, Inc. Journal entry

March 1 2017

Dr Cash (250,000*96%) 240,000

Dr Discount on bonds payable

(250,000×4%) 10,000

Bonds payable 250,000

(to record issuance of bonds)

Explanation:

Since Kingbird, Inc. issues $250,000, 10 years 6% bonds at 96 this means we have to record the transaction as issuance of bonds by Debiting Cash with (250,000*96%)240,000 and as well Debiting Discount on bonds payable with(250,000×4%) 10,000 while Bonds payable will be Credited with 250,000.

5 0

3 years ago

On September 1, Year 1, Dallas Corporation accepts a $30,000 six-month, 12 percent promissory note from one of its clients. The

Aleksandr-060686 [28]

Answer:

$1,200

Explanation:

Since the promissory note is accepted by Dallas Corporation for the period of only four months in the Year 1 i.e. from the September 1, Year 1 to December 31, Year 1, therefore the interest revenue will be accrued for the period of four months which shall be calculated using the below mentioned equation:

Interest revenue=Promissory note amount*interest rate*4/12

=$30,000*12%*4/12

=$1,200

5 0

3 years ago

Mary Smith is considering investing in 30 year Corporate Bonds issued by Duke Energy Company. She knows that she will earn an in

densk [106]

Answer:

Mary Smith is concerned about systematic risk.

Explanation:

Systematic risk refers to the ongoing risk caused by a combination of factors, including the economy, geopolitical issues, corporate health, and others. It covers the impact on the overall market and includes systemic risks that are peculiar to an industry. Systemic risk will only impact the market for Corporate Bonds. But, Mary's concern shows that other factors might combine, causing her to require her money back after a year.

6 0

3 years ago