Voluntary exchange refers to an act of trading between individuals that makes both parties to the trade subjectively better off.

The capital account records Question 2 options:

Paraphin [41]

Answer:

c. transactions involving foreign investment in the United States and U.S investment abroad.

Explanation:

The capital account provides the record of foreign investment transactions occurring between a country and another country. It gives an idea of money coming in and out of the state. A surplus in the capital account record is indicative of the inflow of money in the country, while a deficit indicates the loss of money.

Debt accrued by a country, banking, loans and investment are all reflected in the capital account record. So, for a person to determine a nations assets and liabilities, the capital account would provide an accurate insight to that information.

3 0

3 years ago

At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 20

Nezavi [6.7K]

Answer:

The Pension schedule is prepared in the workings as requested.

Explanation:

The question is to Prepare a Pension Worksheet for Hennein Company for 2017

HENNEIN COMPANY

PENSION WORKSHEET FOR 2017

General Journal Entry Memo Record

Item Pension Cash Pension Defined Plan

Expenses Asset/Liab Benefit Assets

Obligation

Jan 1, 2017 280,000 CR 280,000 Dr

Service Cost 27,500 DR 27,500 CR

interest Cost 28,000 DR 28,000 CR

Actual return 25,000 CR 25,000 DR

Contributions 20,000 CR 20,000 DR

Benefits 17,500 DR 17,500 CR

Journal Entry 30,500 DR 20,000 CR 10,500 CR

Dec. 31, 2017 10,500 CR 318,000 CR 307,500 DR

Note that the interest cost is as follows

280,000 x 10% = $28,000

3 0

3 years ago

For Goody Company, the budgeted cost for one unit of product is direct materials $10, direct labor $20, and manufacturing overhe

dybincka [34]

Answer:

$475,000

Explanation:

Direct materials (M) = $10 per unit

Direct labor (L) = $20 per unit

Manufacturing overhead (O) = 80% of L = 0.8 *$20 =$16 per unit

Selling Price (S) = $65 per unit

Units sold (N) = 25,000 units

The budgeted gross profit for 25,000 units is:

$P = N*(S-(M+L+O))\\P=25,000*(\$65-(\$10+\$20+\$16))\\P=\$475,000$

The budgetd gross profit for Goody Company is $475,000

6 0

3 years ago

A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of the n

s2008m [1.1K]

Answer:

The amount if non-controlling interest at the date of acquisition will be $10,500.

Explanation:

The non-controlling interest is an ownership interest in a company where shareholders hold less than 50% of outstanding shares. The amount of non-controlling interest for the company will be $10,500.

Book value of acquired company is $15,000.

Plant is overvalued by $25,000

License is undervalued by $30,000

Unreported identifiable intangible assets are $50,000

The non-controlling interest is 15% (100 - 85)

The amount of non-controlling interest will be $15,000 - $25,000 + $30,000 + $50,000 = $70,000

$70,000 * 15% = $10,500.

4 0

4 years ago

Using the aging method, Carlton Company calculates the estimated ending balance in the Allowance for Uncollectible Accounts to b

Vedmedyk [2.9K]

Answer: Debit to bad debt expense for $9000 (12000-3000)

Explanation:

debit to Bad Debt Expense for $12,000

debit to Bad Debt Expense for $9,000 which is ($12,000-$3,000)

credit to Allowance for Uncollectible Accounts for $15,000 which is ($12,000+$3,000)

credit to Allowance for Uncollectible Accounts for $12,000

debit to bad debt expense for $9000 which is (12000-3000)

8 0

3 years ago

Read 2 more answers