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3 years ago

Where do temporary account balances go at the end of an accounting period?

Business

1 answer:

Andreyy893 years ago

8 0

Answer:

Temporary – revenues, expenses, dividends (or withdrawals) account. These account balances do not roll over into the next period after closing. The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period.

Explanation:

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On January 1, Year 1, Gallagher Corporation issued 400 comma 000 stock options for 400 comma 000 shares to a division manager.

masha68 [24]

Answer:

$1,000,000

Explanation:

Gallagher Corporation

Stock option × Option estimated fair value /Numbers of years

Stock option $400,000

Option estimated fair value $10

Numbers of years 4

Hence:

($400,000 × $10) / 4 years

=$4,000,000/4years

= $1,000,000

Therefore pretax compensation expense for year 1 will be $1,000,000

4 0

2 years ago

Which one of the following parties can sell shares of ABC stock in the primary market? A. ABC company B. Any corporation, other

Alexxandr [17]

Answer:

The correct answer is letter "A": ABC company.

Explanation:

Corporations and governments finance their activities by issuing stock or bonds which are <em>purchased by the public directly from the issuing corporation or government entity</em>. This is considered the primary market, which provides investors their first chance to purchase new security.

3 0

3 years ago

Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di

dezoksy [38]

Answer:

The following entry is made on the declaration date:

Retained Earnings ( 20,000 x $10) $200,000 Debit

Common Stock Dividend Distributable $40,000 Credit

Paid in Capital in Excess of Par $160,000 Credit

At the moment of been distributed the additional shares to the stockholders the company register the following entry:

Common Stock Dividend Distributable $40.000 Debit

Common Stock $40.000 Credit

Explanation:

When the company declares a stock dividend it does not involve cash, it means that each stockholder will get an additional percentage of shares.

As the total value of stock it's the same, then the value per share decrease related to the price before the stock dividend because there are more shares outstanding.

On December 31, 2018, the company's board of directors declares a 20 percent stock dividend.

As the total shares outstanding are 100,000 , the stock dividend will be 20,000 more shares.

The following entry is made on the declaration date:

Retained Earnings ( 20,000 x $10) $200.000 Debit

Common Stock Dividend Distributable $40.000 Credit

Paid in Capital in Excess of Par $160.000 Credit

At the moment of been distributed the additional shares to the stockholders the company register the following entry:

Common Stock Dividend Distributable $40.000 Debit

Common Stock $40.000 Credit

5 0

3 years ago

Read 2 more answers

Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog watches from

Gnesinka [82]

Answer:

A) Design competition

Explanation:

Digital watch manufacturers and manufacturers of analog watches compete against each other because their products basically satisfy the same needs. Each one offers a very different product with its pros and cons, but even though their products are so different, they can be considered substitutes.

In the concept of innovation streams, Curtab is the innovator that is trying to create a sustainable competitive advantage because it works by designing an innovative product while its competitors rely on updating old designs.

4 0

2 years ago

Tire production in the United States has been on the decline, in both absolute and relative terms. Imported tires are replacing

Helen [10]

Answer:

B. No, because the efficiencies gained from exploiting comparative advantage generate more winners than losers.

Explanation:

Everything has its all pros and cons. When international trade takes place, people in the economy are happy, because of wide variety and options given.

Further the traders, manufacturers also tend to grow as due to competition they improve with the quality standards, designs, variations, etc:

Competition forces to excel in any kind of job you do. And that only the best players and performers stay in the market.

This is the advantage, of such international trades.

6 0

2 years ago