Answer:
Bourne Inc.
Journal entries
Date Account Name Debit Credit
1-Dec Supplies $2,000
Accounts Payable $2,000
1-Dec Cash $6,000
Deferred Revenue $6,000
1-Dec Land $40,000
Notes Payable $40,000
15-Dec Accounts Payable $2,000
Cash $2,000
Adjusting entries
Date Account Name Debit Credit
31-Dec Supplies expense $1,900
($700 + $2,000 - $800)
Supplies $1,900
31-Dec Deferred Revenue $1,000
($6,000/6)
Service Revenue $1,000
31-Dec Interest expense $400
($40,000*12%* 1/12)
Interest Payable $400
Answer:
Correct option is C
Explanation:
Total E&P = $ 160000
Total voting Right Sold = 50/ (100+100) = 25%
Reduction of E& P due to exchange = Total E&P*Total voting Right Sold
Reduction of E& P due to exchange = 160000*25%
Reduction of E& P due to exchange = 40000
Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised
Reduction of E& P Lower of 40000 or (50*1000)
Reduction of E& P Lower of 40000 or 50000
Answer
C. A reduction of $40,000 in E&P because of the exchange.
Answer:
Gross profit= $260,000
Explanation:
Giving the following information:
Sales revenue $ 440,000
Cost of goods sold 180,000
The gross profit is the result of deducting the cost of goods sold from sales revenue. It will appear in the income statement under absorption costing.
Gross profit= sales revenue - COGS
Gross profit= 440,000 - 180,000= $260,000
