I believe the answers are:
a. there is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital.
They do this by selling shares on the stock market. When the shares is sold in this place, every individuals who can afford the price of a single share are eligible to be part owner of the corporation.
b. the life of the business can continue beyond the death of any of the owners.
In corporations, when one of the owners somehow died, the ownership of the corporations would be transferred to the person whould receive the inheritence (usually immdediate family members)
c. the corporation can use the assets of the owners to pay for corporate liabilities.
This happen during the liquidation process. To pay for corporate liabilities, owners had to sell their assets with the equal value of their percentage of their ownership times the amount of liabilities.
Answer:
$900
Explanation:
Given that
Total repair up to end of year = 12
Estimated need to be repaid = 8
Average cost = $45
The computation of warranty expense for the current year is shown below:-
For computing the warranty expense for the current year first we need to find out the total repaired cost which is here below
Total repaired cost = Total repair up to end of year + Estimated need to be repaid
= 12 + 8
= 20
Warranty expense for the current year = Average cost × Total
= $45 × 20
= $900
Therefore for computing the warranty expense for the current year we simply applied the above formula.
Answer:
Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.
Explanation:
The journal entry is given below
Insurance expense A/c Dr $2,400
To Prepaid Insurance $2,400
(Being insurance expense is recorded)
The computation is shown below:
= Insurance premium ÷ number of months × required months
= $4,800 ÷ 4 months × 2 months
= $2,400 months
The 2 months is taken from November 1 to December 31
