Answer:
Minolta: 5 at $ 163 = $ 815
Canon: 7 at $ 133 = $ 931
Vivitar 11 at $ 112 = $ 1,232
Kodak 10 at $ 121 = $ <u> 1,210 </u>
Total Inventory: $ 4,188
Explanation:
We must value the inventory at the lower value between the historic cost and the market value of the assets. This is done to follow the conservatism principles of accounting.
Minolta: 5 at $ 163 = $ 815
Canon: 7 at $ 133 = $ 931
Vivitar 11 at $ 112 = $ 1,232
Kodak 10 at $ 121 = $ <u> 1,210 </u>
Total Inventory: $ 4,188
Answer:
Return on equity.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time
Answer:
C. Limited Liability Company
Explanation:
Limited liability company has this characteristic where as the name suggests the liability is limited to the value of contribution made in the firm. The personal property of any partner cannot be attached to any person, in order to save the partners from being personally liable to firm's creditors.
This provision is not present in general partnership form, as the liability is not limited up to the amount of contribution, rather the partners are personally held liable for any creditors in case the partnership firm fails.
Corporation is for huge number of partners and even expensive to form than the limited liability partnership.
Sole proprietorship offers an individual only to run the business, there are no partners allowed.
Thus, Friedo and Miriam shall form a limited liability partnership.
Answer:
patent 301,350 debit
cash 301,350 credit
franchise 633,600 debit
cash 633,600 credit
development expense 189,000 debit
cash 189,000 credit
year-end adjustment:
amortization expense 50,225 debit
patent 50,225 credit
amortization expense 31,680 debit
patent 31,680 credit
Explanation:
The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.
They will be adjusted at year-end for amortization:
301,350 / 6 = 50,225 amortization on patent
633,600 / 10 = 63,360 amortization on franchise
As it was concede on July 1st then, we will do half-year
63,360 / 2 = 31,680
The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.