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PIT_PIT [208]
2 years ago
13

At the beginning of Year 1, a company reported a balance in common stock of $166,000 and a balance in retained earnings of $66,0

00. During the year, the company issued additional shares of stock for $56,000, earned net income of $46,000, and paid dividends of $11,600. In addition, the company reported balances for the following assets and liabilities on December 31.
1. Prepare a statement of stockholders’ equity.
2. Prepare a balance sheet.
Business
1 answer:
Vinil7 [7]2 years ago
6 0

Answer:

Explanation:

1.

Shareholders equity = Common stock + Retained earnings

Beg. balance = Common stock+Retained earnings = 166,000 + 66,000 = 232,000

Statement of shareholder's equity

Beg balance 232,000

Issuance of common stock  56,000

Add: Net Income 46,000

Less: Dividends 11,600

End balance 322,400

Balance sheet

There is not information for preparation of balance sheet but following is the layout:

Assets:

Cash

Supplies

Prepaid rent

Land

Liabilities:

Accounts payable

Salaries

Utilities

Notes payable

Stockholder's equity:

Common stock 222,000 [166,000+56,000]

Retained earnings 112,000 [66,000+46,000]

Total 334,000

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Knowledge Check 01 On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exer
Westkost [7]

Answer:

$153,333

Explanation:

Calculation to determine What amount should Olympic recognize as compensation expense for 2016

Using this formula

Compensation expense =Total compensation/Vesting period

Let plug in the formula

Compensation expense=($5 x 92,000)/3 years

Compensation expense=$460,000/3 years

Compensation expense=$153,333

Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333

5 0
2 years ago
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
Anastasy [175]

Answer:

Total direct material cost= $400,000

Explanation:

Giving the following information:

Direct material: 5 pounds at $8.00 per pound $ 40.00

Total direct material cost= cost per unit* total units.

Suppouse that the production for the period is 10,000 units:

Total direct material cost= (5*8)*10,000= $400,000

3 0
2 years ago
The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using
FrozenT [24]

Answer:

<u>Skills inventory</u>

Explanation:

Skills inventory refers to the skills stored in an individual i.e one's capabilities and skills.

Skills inventory assessment makes an employer identify how well an employee would be able to meet the skills required at the job and how those skills would aid in the achievement of organizational goals.

It refers to assessing and understanding the competencies of the current staff by an organization.

For the above purpose, businesses may use commercial software or database management systems (DBMS).

In the given case, the HRM specialists exercised the option of using computer network in addition to database management system, to develop a skills inventory , post which, the company is able to successfully identify specific organizational skills.

6 0
2 years ago
Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. S
stira [4]

The question is incomplete:

Clare, a florist, opened a new store and wanted to purchase a new refrigeration display cabinet for fresh-flower arrangements. She entered into a deal with Alpha Refrigeration Systems for two refrigeration units at $600 each. But, after delivering the units, the salesperson demanded another $100 as delivery charges, which was not mentioned in the deal. Identify the win-lose strategy used by the salesperson.

-Good guy-bad guy routine

-Browbeating

-Red herring

-Trial balloon

-Lowballing

Answer:

-Red herring

Explanation:

-Goog buy-bad guy routine is a strategy in which one person appears to be on your side and when you get to an agreement, this person goes to the bad guy for approval who will renegotiate.

-Browbeating is a strategy in which the buyer tries to affect the saleperson atittude by saying unflattering things.

-Red herring is a strategy in which one of the parties tries to distract the other one from certain isues to get an advantage.

-Trial balloon is an strategy in which one of the parties says something to the other one to get information about its position in the negotiation.

-Lowballing is an strategy in which the buyer makes a really low offer to test the seller.

According to the definitions, the answer is that the win-lose strategy used by the salesperson is red herring because Clara didn't consider the information related to the delivery when purchasing the units as she was probably distracted by other aspects and didn't consider this.

5 0
2 years ago
A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised ch
Blizzard [7]

Answer:

d. temporary

Explanation:

Competitive advantage refers to a competitive edge a firm gains over it's competitors by offering better value via it's products or by offering such products at reduced prices.

Competitive advantage results out of a unique or specific methods of production which is more efficient than the competitors and most importantly which cannot be imitated by competitors.

In the given case, the advantage which has accrued is on account of organic method of raising chickens and organic seasonal produce. These advantages are momentarily as, soon other restaurants shall follow suit and gradually these shall disappear.

8 0
2 years ago
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