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2 years ago

The following items are found in the financial statements.

Business

1 answer:

Oksana_A [137]2 years ago

5 0

Answer:

(a) Discount on bonds payable ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES

(b) Interest expense (credit balance) ⇒ WHEN INTEREST EXPENSE IS INCLUDED IN THE INCOME STATEMENT IT HAS A DEBIT BALANCE, WHEN IT HAS A CREDIT BALANCE IT MEANS IT IS A LIABILITY AND MUST BE REPORTED IN THE BALANCE SHEET

(d) Gain on repurchase of debt ⇒ SHOULD BE REPORTED IN THE INCOME STATEMENT AS PART OF OTHER GAINS AND LOSSES

(e) Mortgage payable (payable in equal amounts over next 3 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES (UNDER CURRENT AND LONG TERM LIABILITIES)

(f) Debenture bonds payable (maturing in 5 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES

(g) Notes payable (due in 4 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES

(h) Premium on bonds payable ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LIABILITIES (REDUCES BONDS PAYABLE)

(i) Bonds payable (due in 3 years) ⇒ SHOULD BE REPORTED IN THE BALANCE SHEET UNDER LONG TERM LIABILITIES

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Novay_Z [31]

Coercion is used by Ashby as she threatened to withhold your promotion if you don’t make the appointment.

<h3>What is Coercion?</h3>

The Indian Contract Act's Section 15 defines coercion as "committing or threatening to commit any act prohibited by the Indian Penal Code, or unlawfully detaining, or threatening to detain, any property, to the prejudice of any person whatsoever, with the intention of causing any person to enter into an agreement."

<h3>Give an example of Coercion.</h3>

For instance, if B refuses to sell his house to A for 5 lakh rupees, A may threaten to harm him. Here, even if B sells the house to A, the agreement won't be enforceable because B's cooperation was coerced. Now, coercion has the result of rendering the contract void.

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11 months ago

Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has

ivolga24 [154]

Answer:

a and b

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

Explanation:

a A partnership and b. An S corporation

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

Taxable income of each member:

Ellie

Business Income is $55,000

Capital Gain is $7,500

Linda

Business Income is $55,000

Capital Gain is $7,500

Business Income = Gross Income - Operating expense

= $320,000 - $210,000

= $110,000

Note: Distribution of $25,000 will have no impact, as it only decrease their basis in the firm or company.

c. A C corporation

Ottor pays for the business income which amounts to $110,000 as well as the Capital gain of $15,000 at the applicable tax rates.

Members pays taxes only when they receive the distribution which is dividends.

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

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3 years ago

A free market exists

Vaselesa [24]

<span>A free market exists when the government places few restrictions on how a good or a service can be produced or sold or on how a factor of production can be employed. A free market is an economic system where prices are decided on if there is unrestricted competition between privately owned businesses. Supply and demand are the main factors in a free market and there is little to no government control. </span>

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2 years ago

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Finger [1]

Answer:

Their business should be classified as a Partnership.

Explanation:

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3 years ago

In her presentation on improving employee morale, Jillian makes this statement: So far, you've heard only about the problems we

devlian [24]

Answer: Switching Directions

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Jillian made use of the Switching direction verbal signpost during her presentation.

A verbal signpost is a statement made during a public speech, that gets the audience attention and helps them to know the direction in which the speech is going.

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3 years ago