1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AnnyKZ [126]
3 years ago
13

A new children's hospital is being built in Springfield, and Friendly Corp. has publicly pledged that it will contribute $5 mill

ion toward the hospital's construction. In its pledge agreement dated 1/1/X1, Friendly Corp. and the hospital have agreed upon the following contribution schedule: $2 million to be contributed at 12/31/X1, $2 million at 12/31/X2, and $1 million at 12/31/X3. Friendly's typical borrowing rate is 6%. Required: How must Friendly Corp. report the contribution in its financial statements at the end of each reporting period and as of the inception of the agreement
Business
1 answer:
frozen [14]3 years ago
5 0

Answer:

Following are the solution to this question:

Explanation:

By IAS 1 — Annual Report presentation, 3 concepts were all first consideration, its second consistency as well as the third reporting framework related to investment based that can be define as follows:

  • Full accrual basis: its IAS 1 allows an organization to compile all financial reports through an accounting standards basis, with exception of working capital details. Even more cash accounting is a method to record profit or expenditure account balances when they are made.
  • All financial statements throughout the United States were repayment-based. Any cost will not be reported underneath the accrual system once it is accruing. It implies that recognition is irrelevant whenever a company pays cash to pay an expense.
  • Thus the allocation of 2 million to the year that the Pleasant Corp. was created must be listed as just an expense. As well as the remaining payment amount must be listed as expenses once it is paid. Future interventions throughout the current FY should not be published.
  • Also, notice the payment incoming to ensure that you will be prepared when due, but just don't join the way of supporting using the cash method. It simply reports an expense of what you are pay if you make a payment when you choose to use the cash method. Consequently, until the next date, you would not modify your reporting, which is also known as journal entries.
You might be interested in
A(n) ______ is maintained for each financial statement item, whereas a(n) ______ contains all of the accounts of the company.
Svetllana [295]

Answer:

An <u>account</u> is maintained for each financial statement item, whereas a(n) <u>general ledger</u> contains all of the accounts of the company.

Explanation:

Financial statements refers to a statement that that provides formal records of all financial activities and standing of a company or any entity in a structured and easily understandable manner.

For each item of financial statement, an account is kept with the aim of giving a an accurate record of all business activities that are germane to that specific financial statement item.

The purpose of a general ledger is to show individual transactions and resulting account balance of each account of a company as a single collection.

Therefore, an <u>account</u> is maintained for each financial statement item, whereas a(n) <u>general ledger</u> contains all of the accounts of the company.

4 0
2 years ago
How can a business support the community​
Kryger [21]

Answer:

It can help in many ways one way being they can hold or help hold events in the community.

Explanation:

6 0
2 years ago
Read 2 more answers
Asteroid Industries accumulated the following cost information for the year:
frez [133]

Answer:

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

Explanation:

Factory overhead costs are the costs that are not directly attributable to the production. This would include all the costs except for the direct materials and direct labor.

the total factory overhead costs would be,

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

These costs are then allocated using the appropriate cost base to all the units produced.

Hope that helps.

7 0
3 years ago
According to the long-run Phillips Curve:
Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0
3 years ago
Question 1 Tamarisk Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares of $50 par value
Anastasy [175]

Answer:

The journal entries relating to the conversion of preferred stock to common stock are highlighted below:

Dr Preferred stock                                                 $45,000

Dr Paid-in capital in excess of par                        $9,900

Cr Common stock                                                                           $18,000

Cr Paid-in capital in excess(balancing figure)                                $36,900

Explanation:

Find in the attached the detailed computations of the amounts above.

Download xlsx
7 0
3 years ago
Other questions:
  • Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par non-cum
    13·1 answer
  • List the 14 states that had areas with slave population of more than 30 percent in 1860
    12·1 answer
  • Which tasks are commonly done by employees in the Energy cluster? Check all that apply.
    11·2 answers
  • 9 labels or advertisements for products which use circles in their name or logo
    14·1 answer
  • Carlos bought a building for $113,000 in 2012. he added an addition to the building for $26,000. in 2016, he sold it for $212,00
    12·1 answer
  • How have powerful economic interests captured state power and fashioned economic trade policy to further their interests through
    6·1 answer
  • Jessica is attempting to regulate her emotions on the job. She has been trying to suppress her anger about being overlooked for
    6·1 answer
  • Which of the following statements is correct? A. The Federal funds rate is the rate banks charge their most creditworthy custome
    12·1 answer
  • If a consumer buys flour because he loves baking, the flour is counted as part of GDP. If a bakery buys flour as an input to bak
    9·1 answer
  • When a company issues 39,000 shares of $3 par value common stock for $30 per share, the journal entry for this issuance would in
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!