Answer:
(a) To record the repair to the transmission on one of its delivery vans, the resulting journal entry is:
(Dr) Repairs and Maintenance Expense, $2,300
(Cr) Cash, $2,300
The repair of the transmission is an expenditure that returns the vehicle to its previous operating condition. The repair results in an increase to Repairs and Maintenance Expense (an increase to an expense is a debit) and a decrease to Cash (a decrease to an asset is a credit).
(b) To record the installation of a GPS system in one of its delivery vans, the resulting journal entry is:
(Dr) Delivery Van, $450
(Cr) Cash, $450
The installation of the GPS system is a permanent addition to the van that has increased its capability and should be capitalized. The addition results in an increase to Delivery Van (an increase to an asset is a debit) and a decrease to Cash (a decrease to an asset is a credit).
Answer:
The correct answer is A. replace an existing product group
Explanation:
Greta can find in the replacement of products a greater added value from innovation and consumption. In addition, it helps to raise awareness of consumption and the needs to be met.
The replacement of products by services inspires an important transformation towards a culture of sustainability throughout the value chain. It is a strategy that leverages market forces as a source of society's change.
Organization Expenses Dr 7,500
Cash 7,500
June 14 Cash Dr 120,000
Common Stock 110,000
Paid-In Capital in Excess of par value—Common 10,000
June 22 Cash Dr 120,000
Preferred Stock 90,000
Paid-In Capital in Excess of par value—Preferred 30,000
Answer:
d. only when there is an exchange transaction involving the purchase of an entire business.
Explanation:
Goodwill: Goodwill is an intangible asset that is shown in the asset side of the balance sheet just like intellectual properties, trademark, etc. The goodwill is recognized when it is purchasing the business of the organization
The goodwill is computed by considering the consideration that is paid and the net assets value based on fair value.
Hence, the most appropriate option is d. as the other reasons are not valid