Answer:
<u><em>(It seems that the amount in question is wrongly typed as 65,000 instead of 65,000,000)</em></u>
The correct answer is $40,000.000.
Explanation:
The answer is calculated from guidlines provided in IFRS 10.
As per accounting standards the price paid above fair value of net asset is taken as goodwill. Goodwill is accounted as asset in balance sheet.
As fair value is not given we will assume that book values are equal to fair value. The detail calculations are given below.
Consideration paid $ 65,000,000
FV of net asset ($ 25,000,000)
Goodwill $ 40,000,000
Answer:
A matter of timing
Explanation:
The problem with fiscal policy that is created because of the recognition, legislative, implementation, effectiveness, and the evaluation and adjustment lags is called <u>a matter of timing.</u> The reason being that it can be difficult to time fiscal policy to shift the AD curve at the right moments.
D: because it can't be C, B, A or because they have their own definition
Answer:
Wages Expense debit $8,000
Wages Payable credit $8,000
Explanation:
At the end of December 31, which is a Thursday, workers would have worked 4 days out of a 5-day week, which implies we need to recognize wages for the 4 days because it has been incurred even not yet paid
Wages for 4-days=$10,000*4/5
Wages for 4-days=$8,000
We would debit wages account with $8,000 since an increase in an expense account is a debit entry while wages payable would be credited since it is an increase in liabilities
Answer:
The adjusting entry which is to be recorded is shown below:
Explanation:
The adjusting entry which is to be recorded is as:
Bad Debt Expense A/c..................................... Dr $14,740
Allowance for Doubtful Accounts A/c...............Cr $14,740
As the company records the bad debt expense at the end of the present year
Working Note:
As the company used the percent of receivables sales
Amount = Accounts receivables × Percentage of ending receivable
= $446,000 × 3.0%
= $13,380
Bad debt expense amount = Amount - Debit balance of allowance for doubtful accounts
= $13,380 + $1,360
= $14,740
