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
seropon [69]
3 years ago
10

Bowie Glass purchased 17,000 shares of Lenz Framing common stock for $382,500 in 2016. When they created their December 31, 2016

balance sheet, the shares had a fair value of $373,150. On July 3, 2017, Bowie Glass sold all of the Lenz Framing stock for $27.25 per share less $15,000 in brokerage commission. In their 2017 financial statements, Bowie Glass should report
Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

It should recognize a gain for 75,100 on his investment.

Explanation:

27.25 x 1,700 = 463,250

commision         (15,000)

net realizable value 448,250

book value              (373,150)

gain on investment   75,100

Cash 448,250

                 Lenz Framing Investment 373,150

                 Gain on investment             75,100

You might be interested in
Presented below are the basic assumptions and principles underlying financial statements. a. Historical cost principle d. Going
dimulka [17.4K]

Answer:

1. Periodicity assumption.

2. Going concern assumption.

3. Historical cost principle.

4. Economic entity assumption.

5. Full disclosure principle.

6. Monetary unit assumption.

Explanation:

1. <u><em>Periodicity assumption</em></u>: The economic life of a business can be divided into artificial time periods. It is also known as the Time period assumption.

2. <em><u>Going concern assumption</u></em>: The business will continue in operation long enough to carry out its existing objectives.

3. <em><u>Historical cost principle</u></em>: Assets should be recorded at their acquisition cost.

4. <em><u>Economic entity assumption</u></em>: Economic events can be identified with a particular unit of accountability.

5. <em><u>Full disclosure principle</u></em>: Circumstances and events that could make a difference to financial statement users should be disclosed.

6. <em><u>Monetary unit assumption</u></em>: Only transaction data that can be expressed in terms of money should be included in the accounting records.

5 0
3 years ago
When Auditing the i._____________ area on the financial statements sending out confirmations is required, unless the following t
stiv31 [10]

Answer:

The missing answer is Accounts Receivable.

Explanation:

If a company (say Sender Limited) provides goods and or services to a customer and that customer is yet to pay, the amount due is entered under the Accounts Receivable (AR) portion of Sender Limiteds financial records. In order words Accounts Receivable (AR) is simply money owned to Sender LImited by clients or other debtors.

In a company's balance sheet, the AR is recognized as Current Assets. That is, it is expected that such monies will come in within a year.

When Auditing the accounts receivable area on the financial statements sending out confirmations is required.

It is normal at this point for auditors to requests (electronically or via traditional mail) to

a. customers to verify accounts receivable and

b.  to financial institutions to confirm outstanding promissory notes.

The following are financial areas that may be investigated:

i. cash transactions,

ii. inventory records, and consigned merchandise

iii. long-term contracts,

iv. accounts payable and contingent liabilities, and

v. any transaction that looks suspicious

Cheers

4 0
3 years ago
Edward applied to Harris-Teeter Foods for a manager’s job. His work history includes 8 years as a cashier. His references say he
Brums [2.3K]

Based on the information given this is an example of : hiring an external candidate.

<h3>
What is external candidate?</h3>

Hiring an external candidate means to employ a candidate or new employee which is not an existing or current employee of the organization that employed him.

Based on the given scenario Edward is an external candidate who was hired by HT to fill in a management position which inturn means that  Edward is not an existing employee of Harris-Teeter Foods.

Inconclusion this is an example of : hiring an external candidate.

Learn more about hiring an external candidate here:brainly.com/question/6082099

4 0
2 years ago
If notorious firm behavior (i.e., defrauding a buyer of high-priced experience goods by delivering low quality) becomes known th
Mrrafil [7]

Answer:

Customers will less likely agree to pay high price for an experience good

Explanation:

Once a firms reputation is ruined or tarnished, a great number of customers will naturally lose trust as regards products from that firm. Most customer would not want to gamble with their money even with the slight increase in interests rates, it is expected that a firm should always deliver quality product on a consistent basis. Inconsistency in product quality will lead to a reduction in customer trust and overtime, customer base in general.

8 0
3 years ago
Stephenson Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each ar
Paraphin [41]

Answer:

Stephenson Company

The amounts that are relevant for the selection of one contract over another are:

a) Contract revenue and labor costs

Explanation:

a) Data and Calculations:

Contract X Contract Z

Contract Revenue                         $ 200,000 $ 260,000

Materials                                               10,000       10,000

Labor                                                    88,000    120,000

Depreciation on Equipment                 8,000       10,000

Cost Incurred for Consulting Advice    1,500         1,500

Allocated Portion of Overhead            5,000        3,000

b) The costs of materials and cost incurred for consulting advice, though variable, are equal in each contract.  They are not relevant in determining the contract to choose.  Contract revenue and labor costs are variable and not equal.  They are relevant in determining the contract to select.  They make a difference in the decision.  Depreciation and overhead costs represent sunk costs.  They are not relevant in the decision.

3 0
2 years ago
Other questions:
  • Moral hazard and adverse selection have different timing with respect to the purchase of insurance. in other words, one is of in
    11·1 answer
  • The strategy of setting a single price for two or more units is known as
    8·2 answers
  • Fast delivery trains its truck loaders how to set the packages in the delivery vehicles, so that when delivery drivers are pulli
    6·2 answers
  • Bramble Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of
    13·1 answer
  • The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Acc
    6·1 answer
  • Blank describes the practice of products and services traded between countries around the world.
    15·2 answers
  • Outdoor Adventures, Inc. operates a chain of very large stores that offer an incredible selection of sporting goods at very comp
    13·1 answer
  • Which of the followings statements are true credit cards?
    12·1 answer
  • Maria, a certified financial planner, must also be a licensed attorney to be appointed Trustee of a bankruptcy estate. A. True B
    6·1 answer
  • YO Easy question made for kids
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!