Answer:
See explanation section
Explanation:
(a) December 1 Cash Debit $18,000
Unearned revenue Credit $18,000
<em>Note: The company received the money in advance for a contract to do during December to April. Therefore, they received cash while a liability increased due to receiving advance money.</em>
(b) December 31 Unearned revenue Debit $3,600
Service revenue Credit $3,600
<em>Note: As the company started performing, after the completion of 1st month, i.e., December 1 to December 31, the advance money started expiring because of providing services. Moreover, as the service is performed evenly for 5 months, the 1st month's revenue = $(18,000/5) = $3,600.</em>
Consideration refers to what each party gets in exchange for his or her promise under a contract. A contract has four elements: agreement, consideration, contractual capacity, and legal object. Agreement refers to the contract itself, consideration to the results of the contract, contractual capacity represents your legal ability to sign the contract, and legal object is the purpose of the agreement.
Answer:
$44,100
Explanation:
Larry Bar
Investment in Cash - Receptionist's salary+Sales of custom frame = Cash account balance
Investment in Cash $40,800
Paid $2,000 Receptionist's salary $2,000
Sales of custom frame $5,300
Hence:
$40,800-$2,000+$5,300
=$44,100
Cash account balance will be $44,100
Answer: D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
Answer:
The electrical action has the better expected monetary value with 492,000
Explanation:
We will multiply the expected outcome by their probability then, we add them to get the expected monetary value per option:
![\left[\begin{array}{ccccc}$WIND-UP&$Return&$Probability&$Weight\\$Light&325000&0.1&32500\\$Morerate&190000&0.3&57000\\$Heavy&170000&0.6&102000\\$Total&&1&191500\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24WIND-UP%26%24Return%26%24Probability%26%24Weight%5C%5C%24Light%26325000%260.1%2632500%5C%5C%24Morerate%26190000%260.3%2657000%5C%5C%24Heavy%26170000%260.6%26102000%5C%5C%24Total%26%261%26191500%5C%5C%5Cend%7Barray%7D%5Cright%5D)
![\left[\begin{array}{cccc}$PNEUMATIC&Return&Probability&Weight\\$Light&300000&0.1&30000\\$Morerate&420000&0.3&126000\\$Heavy&400000&0.6&240000\\$Total&&1&396000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24PNEUMATIC%26Return%26Probability%26Weight%5C%5C%24Light%26300000%260.1%2630000%5C%5C%24Morerate%26420000%260.3%26126000%5C%5C%24Heavy%26400000%260.6%26240000%5C%5C%24Total%26%261%26396000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
![\left[\begin{array}{cccc}$Electrical&Return&Probability&Weight\\$Light&-600000&0.1&-60000\\$Morerate&240000&0.3&72000\\$Heavy&800000&0.6&480000\\$Total&&1&492000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24Electrical%26Return%26Probability%26Weight%5C%5C%24Light%26-600000%260.1%26-60000%5C%5C%24Morerate%26240000%260.3%2672000%5C%5C%24Heavy%26800000%260.6%26480000%5C%5C%24Total%26%261%26492000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
