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3 years ago

Which of the following is an advantage of a sole proprietorship?

1 answer:

7 0

B. Sole proprietorships are not very highly regulated, so they are easy to get started. Most forms of business are easy to expand if they succeed! Getting financing really depends on how likely the lenders think the business is to succeed, irrespective of format. The owner is directly liable for the debts of a sole proprietorship, but even if you incorporate, the bank is likely to want a personal guarantee of the owner for any debt of a new corporation, so it's pretty much the same deal. Taxes could be higher or lower, depending on how the business does and what other sources of income the proprietor has (like their day job!)

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On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 77,000 shares authori

Vikki [24]

Answer:

See the explanation below:

Explanation:

1. Prepare journal entries to record the following transactions for Sherman Systems

a. Purchased 5,500 shares of its own common stock at $30 per share on October 11.

Details Dr ($) Cr ($) 

Treasury Stock (5,500 × 30) 165,000

Cash 165,000

To record the repurchase of own common stock

b. Sold 1,125 treasury shares on November 1 for $36 cash per share.

Details Dr ($) Cr ($)

Cash (1,125 × 36) 40,500

Treasury Stock (1,125 × 30) 33,750

Paid-in Capital from Sale of Treasury Stock 6,750

To record the sale of treasury stock.

c. Sold all remaining treasury shares on November 25 for $25 cash per share.

Details Dr ($) Cr ($) 

Cash (4,375 × 25) 109,375

Paid-in Capital from Sale of Treasury Stock 6,750

Retained Earnings 15,125

Treasury Stock 99,000 (4,375 × 30) 131,250

To record the sale of the remaining treasury shares

Kindly note that there is a balance of $6,750 in the Treasury Stock Paid-in Capital account. Since it is utilized, the remaining deficit will show in Retained Earnings.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

Details $

77,000 issued authorized common stock–$10 par value 770,000

Paid-in capital in excess of par value, common stock 241,000

Retained earnings 904,000

Treasury stock (165,000)

Total stockholders’ equity 1,750,000

3 0

3 years ago

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract s

lesya692 [45]

Answer:

recorded on March 31, 2021.

Explanation:

As we know that if there is an accural basis so the revenue is recognized and recorded when it is earned here the receipt of cash is not material for recording the revenue

Since in the given situation, the date of completion of the contract is considered for recording date of revenue as per the accrual basis

So March 31, 2021 should be considered

5 0

2 years ago

If an application asks you to indicate a salary range, you should

goldfiish [28.3K]

Answer:

What to Put for Desired Salary on Job Applications. The best way to answer desired salary or salary expectations on a job application is to leave the field blank or write 'Negotiable' rather than providing a number. If the application won't accept non-numerical text, then enter “999,” or “000”.

Explanation: *write "open" or "negotiable"

4 0

2 years ago

The analysis of the behavior of individual decision-making units is the definition of

Sphinxa [80]

Answer : A) Microeconomics

7 0

2 years ago

Read 2 more answers

The term ______ describes circumstances where a country's exports exceed it imports.

Misha Larkins [42]

Trade surplus or positive trade balance.