Who is responsible for the preparation of the financial statement

f-1. Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, S

Margarita [4]

Answer:

Journal 1

Debit : Other Income $34,000

Credit : Equipment $34,000

Journal 2

Debit : Accumulated depreciation $6,800

Credit : depreciation $6,800

Explanation:

Step 1 : Eliminate the Income resulting from sale and the additional value of equipment sitting in the buyer books

Income = Selling Price - Carrying Amount

where,

Carrying Amount = Cost - Accumulated depreciation

= $84,000

therefore,

Income = $118,000 - $84,000 = $34,000

Journal;

Debit : Other Income $34,000

Credit : Equipment $34,000

Step 2 : Eliminate the unrealized profit as a result of additional asset value

unrealized profit = income ÷ remaining useful life

= $34,000 ÷ 5

= $6,800

Journal;

Debit : Accumulated depreciation $6,800

Credit : depreciation $6,800

7 0

2 years ago

Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financia

lorasvet [3.4K]

Answer:

B) She has to share all of the profits with the partner.

Explanation:

A partnership is a business owned by two or more parties while a sole proprietorship is owned by one person. In the former, decisions are made jointly and the process might take long since all partners must consent to it. Another disadvantage is that all profits are shared between or among all partners unlike a sole proprietorship where the owner takes all the profits.

8 0

3 years ago

Read 2 more answers

Anthony owns a landscaping business that has 4 employees. His company is able to earn revenue of $600 per day. He knows that if

svetoff [14.1K]

Answer:

What is the question?

Explanation:

I suppose that is if it is profitable to hire the new worker, according to microeconomics this decision must be based in something called marginal income and must be compare with the marginal cost because they can increase the income but not the profit depending of the cost of the new worker.

4 0

2 years ago

Whitney has an A.A. in early childhood education and wants a full-time job. She is a social person and wants to work in a fun en

dangina [55]

Answer:

C. She wants to work with a different group of adults.

Explanation:

Whitney has an associate degree in early childhood education, so she is qualified for the job, the pay is $35,000 which is above her least requirement and she likes to work with children which the company does so, however she does not want to work with such group of adults (employees) who are not comfortable working with the children as she is a social person and wants to work in a fun environment with happy people.

5 0

3 years ago

Suppose that the government imposes a $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be ______, coff

Scrat [10]

Answer:

increase, decrease

Explanation:

In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.

5 0

3 years ago

Who is responsible for the preparation of the financial statement​

Who is responsible for the preparation of the financial statement