Answer and Explanation:
a. In the case when the subsidiary company owns none of the preferred stock so the income of the subsidiary and the net assets allocated to the preferred stocks that not owned by the parent would be involved in the non-controlling interest
b. Now if the parent company owned 100% of the preferred stock so the share of the income of the subsidiary and the net asset allocated to the preferred shares would be removed against the balance left in the investment account of the parent
Answer:
No net affect: There is both an increase in Assets and a decrease in Assets
Explanation:
The journal entry is as follows
Inventory Dr $2,000
To Cash $2,000
(Being the inventory is purchased for cash is recorded)
This journal entry states that the inventory is purchased for cash. The inventory is purchased that increases the asset and on the other side the cash is paid for the purchase of increased which decrease the asset
So, there is no impact on the asset side or accounting equation
Answer:
Ernst Consulting
Balance Sheet
For the Month Ended October 31, 202x
Assets:
Cash $12,650
Accounts receivable $12,800
Office supplies $2,850
Office equipment $17,530
Land $45,940
Total assets $91,770
Liabilities and stockholders' equity:
Accounts payable $8,110
Common Stock $83,540
Retained earnings $120
Total liabilities and stockholders' equity $91,770
Explanation:
I ordered the accounts and included a couple that were missing:
- Cash 12,650
- Accounts receivable 12,800
- Consulting revenue 12,800
- office supplies 2,850
- Land 45,940
- office equipment 17,530
- Accounts payable 8,110
- Cash dividends 1,570
- Common Stock 83,540
- Rent expense 3,110
- Salaries expense 6,490
- Telephone expense 850
- Miscellaneous expenses 660
First we need to determine net profit for the month:
Consulting revenue 12,800
Salaries expense -6,490
Rent expense -3,110
Telephone expense -850
Miscellaneous expenses -660
net profit = $1,690
retained earnings = net profit - dividends distributed = $1,690 - $1,570 = $120
Under partnership Felix is entitled to receive $100,000. 1/3 × 300000 = $100000
In a partnership, parties who are referred to as business partners agree to work together to further their shared objectives. Individuals, companies, interest-based organisations, schools, governments, or combinations of these may be the partners in a partnership.
All partners in a general partnership are equally liable financially and legally. The debts that the partnership incurs are personally liable to the individuals. Equal shares are also given to profits. In a partnership agreement, the mechanics of profit sharing will almost definitely be spelled out in writing.
Organizations may work together to expand their reach and increase the likelihood that each will succeed in reaching their goals. A partnership may solely be controlled by a contract, or it may issue and hold stock.
Learn more about partnership here:
brainly.com/question/9909227
#SPJ4