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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 Future interventions throughout the current FY should not be published.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.
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Identify one environmental factor or risk that affects the decision-making opportunities within your organization. Provide a bri
Aneli [31]

Answer:

Explanation:

Businesses can be affected by various environmental facors as political, economic, social and technological facors (PEST). All of these factors influence the decision making within the organization.

Let's briefly describe each of the factors:

1. Political factors: In some countries there are subsidiaries and tax exemptions for running a particular businesses. For example, tax exemptions for those doing green business or producing electric cars. In order to adress such risks, business people should investigate about legislation and political environment of countries.

2. Economic factors: Businesses are affected by economic well being of the market where it is based. For example, market largely differs in European ccountries and Central Asian countries. Most of the countries in Central Asia are developing countries, whereas European countries are developed and have economic stability. To handle such risks, businessman should research the potential markets on the issues of inflation rate, average income of people and etc.

3. Social factors: How society views the markets and what it demands. Some support green initiatives and want zero waist products and etc.

4. Technological environment: In case of electro cars, if there are no energy for charging them that could be the potential issue. Or if market is not really technologically advanced, business will need to educate the market about their innovational products and etc.

In order to manage such concerns there should be particular research and investigations held and of course financial requirements are important and should be met for budgeting purposes.

8 0
3 years ago
When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:A. may make low-v
barxatty [35]

Answer:A. May make low volume customers appear more profitable than they are.

Explanation:

The allocation of fixed cost based on sales volume will increase cost allocated to large volume sales unit which will invariably reduce their profit and will reduce the cost allocated to low volume sales which may increase their profit.

It does not affect the overall firm profitability not customers contribution margin.

6 0
3 years ago
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
geniusboy [140]

The journal entry for this issuance would include is $ 10,53,000.00.

A magazine entry consists of the acquisition of machinery with the aid of the country wherein the equipment account could be debited, and the coins account may be credited.

A magazine access is a report of the enterprise transactions inside the accounting books of a enterprise. A well documented magazine entry consists of the best date, amounts to be debited and credited, description of the transaction and a completely unique reference wide variety. A magazine access is the first step within the accounting cycle.

                                                              Debit                                Credit

Number of shares = $ 39,000

cost of per shares = $3

total cash of shares = $ 117000          117000

Common stock ( 39000 * 3 )                                                        117000.00

Paid in capital  ( 39000  shares * 27)                                         10,53,000.00

(To record the issuance of shares at a premium of $ 27)

Learn more about  journal entry here:- brainly.com/question/14279491

#SPJ4

5 0
1 year ago
Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Ending Balance Beginning Balance Cash and cash equi
Artemon [7]

Answer:

The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.

Explanation:

Account receivable:

= Ending balance - Beginning balance

= 24,000 - 28,000

= -4,000

Decrease in account receivable

Inventory:

= Ending balance - Beginning balance

= 65,000 - 68,000

= -3,000

Decrease in inventory

Since the Current assets have decreased therefore they should be added to net income.

The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.

Note: The options are missing from the question, so i have attached the options with the answer.

3 0
3 years ago
Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio
faust18 [17]

Answer: $20,000

Explanation:

Bonds are to be carried in the books at their fair value which is their market value. That value is $20,000 in this instance and so Dyckman Dealers will have to record the bonds at that $20,000 value.

Investment analysis are not a basis for recording bond prices. They are simply a basis for making investment decisions. For instance, because they believe that the bond is overvalued, they can benefit from this by short selling the bond and waiting for it to drop in price.

3 0
2 years ago
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