Answer:
Given:
On January 2, 2016:
Issued 15,000 shares of $10 par value
Common stock for $15 per share
On March 1, 2016: Alpha reacquired 1,000 of these shares when they were trading $20 each.
On September 1, 2016: Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share.
Answer: The correct answer is B : a $5,000 decrease in cash, a $15,000 increase in notes payable, and a $20,000 increase in equipment, all entered on the same date.
Explanation: The option B is correct because we are accounting for a purchase of a piece of equipment. The options in the questions show that the purchase was partly through cash and partly through notes payable. Since that is the case, the appropriate entries should record a cash outflow (credit to cash to decrease it), increase in notes payable as a result (credit to notes payable to increase) and subsequently, increase in equipment (debit to equipment). <em>So, the total credits equal the total debit.</em>
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Answer:
D - Procedure
Explanation:
The correct option from the multiple choices is D that is Procedure
(the procedure is a set of guidelines to tell how one should respond or act to a situation when it arises. These procedures are standard for all the time in such a similar circumstance.)
Thus, to outline a particular circumstance, procedure is the correct option.
Answer:
The correct option is (c)
Explanation:
Amortization is the way toward assigning the cost of an intangible resource over its valuable life. Straight-line amortization is one strategy for doing as such.
The method does evaluate the total amount Red may amortize for 2019:
$11,667 [$300,000 × (7 months/180 months)]. The total amount Red should amortize is 11,667$ for the year 2019.
Answer:
b. should be; should definitely not be
Explanation:
When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.
Inflation and movements in exchange rates reduces and impacts the value of cashflows and the real returns to be derived from an investment and must be considered in every investment analysis to take account of the time value of money.
Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted