Identify the stage of the new product development based on the given scenario.

Kramer and Knox began a partnership by investing $58,000 and $65,000, respectively. During its first year, the partnership earne

IRISSAK [1]

Answer and Explanation:

The computation is shown below:

1. At the time when the partner failed to share the incom and loss so it is assume that the net income i.e. $160,000 should be shared equally so for both it is $80,000 each

2. When the income is shared as per their initial investment

Particulars Kramer Knox Total

Investment $58,000 $65,000 $123,000

Investment ratio 47.15% 52.85%

$160,000 income share $75,440 $84,560 $160,000

3. Sharing of the income as per the defined rule

Particulars Kramer Knox Total

Salary allocated $56,500 $46,500 $103,000

Interest at 12% $6,960 $7,800 $14,760

Remaining balance $21,120 $21,120 $42,240

Total $84,580 $75,420 $160,000

3 0

3 years ago

lYour friend says, "I have some extra money, but I'm not sure if I should save or invest it." What key questions would you ask y

JulijaS [17]

I prefer investing money you can save it too

3 0

3 years ago

A rock group assigns its payment under a performance contract to the Costume Shop, a business that has supplied the group with o

blondinia [14]

Answer:

Rock Group and Costume Shop

Under this arrangement the rock group is the

d. assignor.

Explanation:

The rock group, as the assignor, is the entity that transfers its property rights or its powers to payment to Costume Shop. The Costume Shop is the assignee because it is the entity to which property rights or powers to payment of the rock group are transferred. Under the performance contract, the rock group can also be described as the delegator while the Costume Shop is the delegatee. However, under payment terms, the rock is the assignor while the Costume Shop is the assignee.

5 0

3 years ago

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan

algol13

Answer:

Morrow Enterprises Inc.

A. January 1 balances in T-accounts:

Common Stock

Jan. 1 Balance b/d $7,500,000

Additional Paid-in Capital -Common Stock

Jan. 1 Balance b/d $825,000

Retained Earnings

Jan. 1 Balance b/d $33,600,000

Treasury Stock

Jan. 1 Balance b/d $450,000

B1. Journal entries to record the transactions:

Jan. 22

Debit Dividends Payable $28,000

Credit Cash Account $28,000

To record payment of $0.08 dividends per share.

April 10

Debit Cash Account $1,800,000

Credit Common Stock $1,500,000

Credit Additional Paid-in Capital $300,000

To record the issue of 75,000 shares for $24 per share.

June 6

Debit Cash Account $650,000

Credit Treasury Stock $450,000

Credit Additional Paid-in Capital $200,000

To record reissue of 25,000 shares of treasury stock at $26 per share and close the Treasury Stock balance to Additional Paid-in Capital.

July 5

Debit Stock Dividends $450,000

Credit Dividends Payable $450,000

To record the declaration of the 4% stock dividend on 450,000 shares of common stock.

August 15

Debit Dividends Payable $450,000

Credit Common Stock $360,000

Credit Additional Paid-in Capital $90,000

To record the issue of a 4% stock dividend certificates on 450,000 shares at $25

Nov. 23

Debit Treasury Stock $570,000

Credit Cash Account $570,000

To record the purchase of 30,000 shares of treasury stock for $19 per share.

Dec. 28

Debit Dividends $42,000

Credit Dividends Payable $42,000

To record the declaration of a $0.10 per share dividend on 420,000 shares of common stock.

Dec. 31

Debit Income Summary Account $1,125,000

Credit Retained Earnings $1,125,000

To close the credit balance of the income summary.

Dec. 31

Debit Retained Earnings $492,000

Credit Stock Dividends $450,000

Credit Dividends $42,000

To close the two dividends accounts.

B2) Posting to the selected accounts:

Common Stock

Dec. 31 Balance c/d $9,360,000 Jan. 1 Balance b/d $7,500,000

Apr. 10 Balance b/d $1,500,000

Aug 15 Dividend Payable $360,000

$9,360,000 $9,360,000

Jan. 1 Balance b/d $9,360,000

Additional Paid-in Capital -Common Stock

Dec. 31 Balance c/d $1,415,000 Jan. 1 Balance b/d $825,000

Apr. 10 Balance b/d $300,000

Jun. 6 Treasury Stock $200,000

Aug 15 Dividend Payable $90,000

$1,415,000 $1,415,000

Jan. 1 Balance b/d $1,415,000

Retained Earnings

Dec. 31 Stock Dividends $450,000 Jan. 1 Balance b/d $33,600,000

Dec. 31 Dividends $42,000 Dec. 31 Income Summary $1,125,000

Dec. 31 Balance c/d $34,233,000

$34,725,000 $34,725,000

Jan. 1 Balance b/d $34,233,000

Treasury Stock

Jan. 1 Balance b/d $450,000 Jun. 6 Cash $450,000

Nov. 23 Cash $570,000 Dec. 31 Balance c/d $570,000

$1,020,000 $1,020,000

Jan. 1 Balance b/d $570,000

Dividends Payable

Jan. 22 Cash $28,000 Jan. 1 Balance b/d $28,000

Aug. 15 Common Stock $360,000 Jul. 5 Stock Dividends $450,000

Aug. 15 Additional Paid-in$90,000 Dec. 23 Cash Dividends $42,000

Dec. 31 Balance c/d $42,000

$520,000 $520,000

Jan. 1 Balance b/d $42,000

Stock Dividends

Jul. 5 Dividends Payable $450,000 Dec. 31 Retained Earnings $450,000

Cash Dividends

Dec. 28 Dividends Payable $42,000 Dec. 31 Retained Earnings $42,000

Income Summary Account

Dec. 31 Retained Earnings $1,125,000 Dec. 31 Balance b/d $1,125,000

C. Retained Earnings Statment for the year ended December 31, 2016:

Beginning Balance $33,600,000

Income Summary $1,125,000

Stock Dividends ($450,000)

Cash Dividends ($42,000)

Ending Balance $34,233,000

Explanation:

a) Cash Account

Apr. 10 Common Stock $1,500,000 Jan. 22 Dividends Payable$28,000

April 10 Additional Paid-in $300,000 Nov. 23 Treasury Stock $570,000

Jun. 6 Treasury Stock $450,000

Jun. 6 Additional Paid-in $200,000

6 0

3 years ago

Sales tax is this type of tax because it represents a higher percentage of the income of lower income earners.

HACTEHA [7]

Answer is A. regressive tax

3 0

3 years ago