Answer:
DR Inventory $609,000
Land $1,086,750
Buildings $2,138,250
Customer Relationships $842,250
Goodwill $965,750
CR Accounts Payable $102,000
Common Stock $56,400
Additional Paid-In Capital $1,353,600
Cash $4,130,000
Working
Common Stock = 28,200 shares * $2 = $56,400
Additional Paid in Cap = 28,200 shares * ( 50 - 2) = $1,353,600
DR Additional Paid-In Capital $32,400
CR Cash $32,400
DR Professional Services Expense $49,800
CR Cash $49,800
An example of primary market transaction occurs when there
is a presence of creation of securities in which there is an initial public
offering the occurs in a market n means for having to make the market to sell
for the first time as it is associated or showed in the public.
Answer:
C) three reporting entities
Explanation:
A reporting entity is the same as an accounting entity, and it refers to a business or individual that must keep ts own accounting records. The entity must engage in separate activities and have separate obligations than other entities.
In this case:
- the Stone Creek Bank is one entity that borrowed $500,000
- John Hamilton is another entity because he borrowed money from the bank and is responsible for paying it back
- Sauce It Up restaurant is another entity that was created by John Hamilton, and received $450,000
Answer: U.S Treasury bonds
One of the main risks of investing is the risk of not getting back the amount invested. This risk is called default risk.
Income bonds, preferred stocks and subordinated debentures have default risk since there is no guarantee by the issuing companies that they will repay the principal, and interest or preferred dividends, as the case may be.
However, if an investor holds a U.S treasury bonds until maturity, the government gives a guarantee on the interest payment and principal amount. Hence the U.S treasury bonds are traditionally considered to have the least risk.
However, even U.S. treasury bonds are sensitive to inflation and interest rates.
Answer:
A. $ 432 comma 000.
Explanation:
The computation of the relevant cost of keeping the old machine is shown below:
= Annual cash operating costs × Current age in years
= $108,000 × 4 years
= $432,000
To find out the relevant cost for the old machine, we multiply the annual cash operating cost with its current age so that the accurate cost can come
All other information which is given in the question is not relevant. Hence, ignored it
