Answer:
1. Prepaid insurance (Dr.) $6,300
Cash (Cr.) $6,300
2. Cash (Dr.) $15,300
Unearned Income (Cr.) $15,300
3. Purchases (Dr.) $1,750
Accounts payable (Cr.) $1,750
Cost of Goods Sold (Dr.) $1,620
Ending Inventory (Dr.) $130
Purchases (Cr.) $1,750
4. Prepaid office rent (Dr.) $6,300
Cash (Cr.) $6,300
Explanation:
The adjusting entry is a journal entry recorded at end of accounting period to adjust events or transactions to comply with the accrual concept.
The closing entries are journal entries required to close a transaction or event in the period. The purpose is to follow matching concept of accounting.
Rational choice theory states that individuals rely on rational calculations to achieve outcomes that are in line with their personal objectives. These decisions provide people with the greatest benefit or satisfaction — given the choices available — and are also in their highest self-interest.
Answer:
1. $34 million
2. $0
Explanation:
Given that,
Fair value of Centerpoint Inc = $256 million
Book value of Centerpoint's net assets (excluding goodwill) = $228 million
Book value of Centerpoint's net assets (including goodwill) = 290 million
1. Actual Value of Goodwill:
= Fair Value of Centrepoint Inc. - Book Value of Net assets (excluding goodwill)
= $256 million - 228 million
= $28 million
Loss on Impairment of Goodwill:
= Goodwill recorded - Actual value of goodwill
= $62 million - $28 million
= $34 million
2. In this case Fair value of ($318 million) is more than Book value ($290 million) then there will be no Impairment Loss.
It means that the loss on Impairment of Goodwill = $0.
Answer:
Pricing
Explanation:
4 ingredients of marketing mix are Pricing, Product, Place and Promotion(the 4Ps).
Pricing- is for determining the value that is put on a product including rebates. Deciding the correct intrinsic value of a product puts a lot of factors into consideration like the target market, the consumer willingness to pay, whether it is sufficient enough for the company to make a profit out of it.
Product - answers the <em>what</em>; the actually good or service being offered for sale.
Place- answers the <em>where; </em>the location of product so customers can buy it.
Promotion- any activities to inform the target market that the product exist, how to use it etc. this includes advertisement, word of mouth among others.
Answer:
The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.
Explanation:
There are five steps for revenue recognition established by the Financial Accounting Standards Board (<em>FASB</em>) which are: <em>Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations </em>and<em>; Recognizing revenue.</em>
In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.
