Answer:
Share Authorized = 100,000 Shares
Share issued = 70,000
Share outstanding = 66,000 shares
Explanation:
Data provided in the question:
Number of shares Gagne Corporation allows the issuance = 100,000 shares
Number of shares Gagne sold to shareholders = 70,000
Number of shares reacquired by Gagne = 4,000
Now,
Share Authorized = Number of shares Gagne Corporation allows the issuance
= 100,000 Shares
Share issued = Number of shares Gagne sold to shareholders
= 70,000
Share outstanding = Shares issued - Number of shares reacquired
= 70,000 - 4,000
= 66,000 shares
Answer:
Transaction price of the arrangement for Blair Biotech is $10,000,000.
2) Journal Entries for Blair.
Date Accounts Debit$ Credit$
12/20/2017 Accounts Receivable $10,000,000
License Revenue $10,000,000
01/15/2018 Cash $10,000,000
Accounts Receivable $10,000,000
Explanation:
Answer:
a. Increase in inventory - <u>an operating activity subtraction from net income</u>
This is an operating activity as it has to do with the day to day business of the company and its operations. It is a subtraction from Net income because an increase in inventory means that more cash was spent to buy the inventory.
b. Issuance of common stock - <u>a financing activity</u>
Financing activities are those that have to do with raising capital for the business so when stock is issued and Equity is raised, it is a financing activity.
c. Decrease in accrued liabilities - <u>an operating activity subtraction from net income</u>
Liabilities are also in relation to the firm's operations so they are operating activities. This will be a subtraction from Net income because cash was used to pay off liabilities which is what reduced them.
d. Net income - <u>operating activity addition to net income</u>
Net income is derived from the operations of the business so is an Operating activity. It will increase net income evidently.
e. Decrease in prepaid expense - <u>operating activity addition to net income</u>
Prepaid expense is in relation to expenses which is an operating activity. It will be an addition to net income because as an asset, it reducing means that cash was not paid to acquire it.
Answer:
Net amount of accounts receivable that should be included in current assets:
= Accounts receivable - Allowance for doubtful accounts
= $256,000 - $8,000
= $248,000
The journal entry is as follows:
Bad debt expense[$8,000 - $1,000] A/c Dr. $7,000
To Allowance for doubtful accounts $7,000
(To record the bad debt expense)
Answer: Enron
Explanation:
Enron scandal was an accounting scandal that involved Enron Corporation, which was an American energy company that was based in Houston, Texas.
Enron hid huge amount of trading losses, which led to its bankruptcy. The company used fraudulent accounting practices in order to inflate the revenue of the company and.hid the debt that the company incurred.
