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4 years ago

The income statement for Delta-tec Inc. for the year ended December 31, Year 2, was as follows:

Business

1 answer:

postnew [5]4 years ago

8 0

Answer and Explanation:

Retain earnings, year 2

= retained earnings year 1 + earning for year 2

= $825,000 + ($245,000 - $65,000)

= $825,000 + $180,000

= $1,005,000

Therefore, The December 31, Year 2, Retained Earnings balance is $1,005,000.

trading inverstments are classified under current assets. the closing balance of trading inverstments is:

trading inverstments purchased at cost in year 2 $346,000

trading inverstments sold at cost in year 2 $66,000

balance of trading inverstments at cost $280,000

The balance sheet is present like:

D-Tec Inc

balance sheet

particulars amount($)

current asstes

trading inverstments(at cost) 280,000

valuation allowance for trading inverstment (72,500)

trading inverstments(at fair value) 207,500

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Allocating common fixed expenses to business segments: Multiple Choice may cause managers to erroneously keep business segments

Anna007 [38]

Answer:

ensures that all costs are covered

Explanation:

Common fixed expenses is support the operation of many segments. It is not visible in whole segment or in the part of any segment.

Allocating common fixed expenses to business segments may reason the managers to wrongly terminated business segments because it’s artificially increases each segment of break even point. Even after discontinuation of common fixed expenses, it will happen continuously.

So According to the analysis, option (C) is correct.

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3 years ago

The AW Direct trucking company recently had to terminate one third of its employees and restructure various divisions. Some empl

ololo11 [35]

Answer:

c. If the decision to terminate was an employee's, the relationship the previous employee had with AW Direct, the amount of notice given by the employee prior to departure, and the needs of AW Direct.

Explanation:

The impact, behavior and the relationship in the employee-organization connection is crucial for determining whether to rehire or not.

If the employee terminated the contract by his/her will, with no intention of working with the company, than it is of no use to reach that employee out. Also, his/her behavior and responsibility is indicated by the amount of notice he gave before the termination, as it is mostly required by companies in order to find adequate workforce replacement.

Most importantly, AW Direct has to have in mind the particular employee needs it has, and which employees caters to them. Since these employees have already worked for AW Direct, the company surely has an established HR record regarding each and every one of them.

Personal needs of the particular employee (financial, medical, or family needs) are irrelevant as they imply a biased (although ethical) take on hiring. Naturally, the same applies for hiring employees related to managers.

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3 years ago

Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date repr

vitfil [10]

Answer:

The amount of cash before the replenishment is $84.

Explanation:

Because the accumulated receipts are $320 ($110+$140+$70), that give us a total of $80 in cash ($400-$320=$80). However, we have a cash overage of $4, which means that we need to add this money to the amount of cash in the fund ($80+$4=$84).

5 0

3 years ago

Read 2 more answers

Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1

Gennadij [26K]

Answer:

weighted average interest rate 10.61 %

Explanation:

construction capitalized interest

mar-01 1,848,000.00 x 10/12 1,540,000.00

jun-01 1,248,000.00 x 7/12 728,000.00

dic-31 30,198,800.00 x 0 -

capitalization 2,268,000.00

especific borrowings

$1,038,290 note at 13% = 134977.7

capitalziation through non-specifit borrowings

2,268,000 - 1,038,290 = 1,229,710.00

average rate

loan rate interest

2,241,900 10% 224,190

3,500,300 11% 385,033

5,742,200 609,223

average rate: 609,223/5,742,200 = 0.106095747

capitalized from non-specific:

1,229,710 x 10.61% = 130,467.00

total interest capitalized =

134,977.7 + 130,467 = 265,444.70

5 0

3 years ago

Which of the following debit and credit rules is correct? A. Decreases in assets and liabilities are credited. B. Increases in

Andrei [34K]

Answer:

B. Increases in liabilities and stockholders' equity are credited.

Explanation:

As Liabilities and Stockholder's equity have credit balance, so a credit entry will increase their value and debit entry will decrease its balance. On the other hand assets accounts have debit balance, a credit entry will decrease its balance and debit entry will increase it. So the correct option is B. Increases in liabilities and stockholders' equity are credited.

6 0

3 years ago