Answer:
Skysong Corporation
Statement of Retained Earnings
Retained earnings balance January 1, 2020 $691,300
Add:
Adjustments to 2019 Income Statement $88,390
Net profits 2020 $1,552,100
Less:
<u>Dividends declared and distributed ($82,000) </u>
Retained earnings balance December 31, 2020 $2,249,790
Since the land purchase was recorded as maintenance expense by error, the 2019 income statement must be adjusted by adding that amount.
Answer:
c. Discretionary
Explanation:
The discretionary policy is the policy that depends upon the judgement of the people who made the policy. It also deals in the decision making with respect to the monetary and fiscal policy
So here in the given situation, it is mentioned at the time of taking the action by the federal government with respect to change in the taxes and the spending in order to stimulate the economy
So this situation represents the discretionary policy
therefore the option c is correct
Answer:
14.77%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.97% + 1.40 × 7%
= 4.97% + 9.8%
= 14.77%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is shown in the answer
Answer:
A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet
Explanation:
The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.
It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.
Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term
