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3 years ago

The amount of earnings distributed to stockholders can be found in the income statement.

Business

1 answer:

evablogger [386]3 years ago

3 0

Answer:

Unearned membership revenue of $9,000

Explanation:

The sales on credit during January 2017 was valued at $12,000 ($200 x 60).

In March 2017, customers paid $3,000, leaving the balance of $9,000 outstanding.

Since the season for which sales and collections were made starts March 1, 2017, when reporting the financial statements for the period ending March 31, 2017, the Membership Revenue would be $3,000 only and the balance $9,000 would be reported as Unearned Membership Revenue in the Balance Sheet with a further $9,000 reported in the Accounts Receivable to balance the records.

This shows that Unearned Membership Revenue of $9,000 is the only valid statement.

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On December 21, 2017, Novak Company provided you with the following information regarding its equity investments.

vodomira [7]

Answer:

(a)

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(b)

Dr Cash $9,410

Dr Loss on Sale of Investment $590

Cr Equity Investment $10,000

(c)

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2017.

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(To Adjust to Fair Value for 2017)

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2018.

Dr Cash $9,410

Dr Loss on Sale of Investment $590

(20,200- 20,790)

Cr Equity Investment $10,000

($9,410+$590)

(To Record Sale of Stock)

(c)Preparation of the adjusting journal entry needed on December 31, 2018.

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

(To Adjust to Fair Value for 2018)

Investments Amortized Costs, Fair Value , Unrealized Gain (Loss)

Clemson Corp. stock

$20,200 $19,410 ($790)

Buffaloes Co. stock

$20,200 $20,700 $500

$40,400 $40,110 ($290)

Previous Fair Value Adjustment (Credit)

$1,410

Fair Value Adjustment (Debit)$1,120

7 0

3 years ago

A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 122 Japanese yen 1 British pound = 2.25 Swis

andrezito [222]

Answer:

88.38

Explanation:

Given;

1 U.S. dollar = 122 Japanese yen

1 British pound = 2.25 Swiss francs

1 British pound = 1.63 U.S. dollars

Therefore,

2.25 Swiss francs = 1.63 U.S. dollars

1 US. dollar = 2.25/1.63 Swiss francs

1 US dollar = 1.38 Swiss francs

since

1 U.S. dollar = 122 Japanese yen then,

1.38 Swiss francs = 122 Japanese yen

1 Swiss francs = 122/1.38 Japanese yen

1 Swiss francs = 88.38 Japanese yen

1 Swiss franc can be used to purchase 88.38 Japanese yen.

8 0

3 years ago

Beyond the IMS, identify and briefly describe the (exogenous) environmental factors that organizations should consider when perf

Nookie1986 [14]

Answer:

1. Environmental factors that organizations should consider are :Political, Economic, Social, Technological, Legal and Environmental factors. Example are interest rates, innovations and laws

2. Internal factors that organizations should take into account in preparing to do a SWOT analysis are strengths (S) and weaknesses (W).Examples are innovation culture, expertise and resources as well as value systems

3. Environmental factors are influencing Ford Motor Company and the rest of the automobile industry are laws (legal-environmental) , interest rates (economic), customers needs depending on geography (social)

Explanation:

The Integrated Management System (IMS) is an internal tool that the Company uses to all of its organization systems and processes into one complete framework which enables the organization to work as a single unit. It however does not tell anything about the environment in which a company operates in.

When performing an external environmental analysis, organizations should consider the PESTLE analysis which tell much about the external environment. PESTLE analysis looks into Political, Economic, Social, Technological, Legal and Environmental factors that are likely to impact an organization strategy.

The SWOT analysis provides a scan of the internal and external environment and is an important part of the strategic planning process. Environmental factors Internal to the organization are classified as strengths (S) and weaknesses (W), and those external can be classified as opportunities (O) and threats (T).

Ford Motor Company and the rest of the automobile industry are mainly influenced by the Legal and Environmental Factors through laws set by countries to reduce carbon emissions in the fight against global warming. Other factors include the ability to innovate (Technological) and meeting the changing customer needs (Social). The profit part is always important as well in these inflationary times so they also need to set prices well (Economic).

3 0

3 years ago

During a strike by the United Steelworkers of America in 2010, Honeywell claimed that the union left nails in the plant parking

Snowcat [4.5K]

Answer:

injunction

Explanation:

A prohibition is a legal and equitable remed in the form of a special court order that compels the party to commit or reject certain action. "When a court appoints an extraordinary injunction, it sets forth the conduct of one party and does so with the support of its full powers."
A party who fails to comply with the ban will face criminal or civil penalties, including criminal sanctions and imprisonment. He can also be charged in a contempt of court case.
These are the situations where you can ask the criminal party to stop doing things that hurt and hurt you. However, there are cases where asking does not solve the problem. In such a case, you may want to go to court and ask the judge to intervene in the situation and to treat the offending party as problematic. To do this, you file an injunction.

6 0

3 years ago

On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial and income tax reporting purp

fiasKO [112]

Answer:

a. retained earnings statement, as a $630,000 addition to the beginning balance

Explanation:

Data provided in the question

Change in increase in inventory = $900,000

Income tax rate = 30%

By considering the above information, the cumulative effect is

= Change in increase in inventory - Change in increase in inventory × income tax rate

= $900,000 - $900,000 × 30%

= $900,000 - $270,000

= $630,000

This $630,000 is a addition to the beginning balance

4 0

3 years ago