The accrual basis of accounting states that “expenses are matched with related revenues and are reported when the expense is incurred, not when cash changes hand”. Therefore, adjusting entries are required because of the matching principle in accounting.
The Owner's Equity statement illustrates the capital account changes due to contributions, withdrawals, net income, or a net loss. So Ending Balance of the statement of changes in Owner's equity will be; Opening capital + Capital Added + Net Income - Owner's Withdrawals.
A one-page report titled a "statement of owner's equity" compares all assets and liabilities to determine the owner's equity's overall value. The snapshot, which is tracked over a predetermined time period or accounting period, depicts the flow of cash through a company.
Owner's equity is simply the difference between the owner's initial investment in the business and any withdrawals made by the owner. For instance: A real estate project with a value of $500,000 and a loan balance of $400,000 would have $100,000 in owner's equity.
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A foreign corporation:
a. does business in one or more states, but is chartered in another state.
Answer:
Seller Surplus
Explanation:
In business terms, there is a difference in the expected value what a seller expects to receive from the products it sells and from the amount it actually earns.
The cost of the product not only involves the monetary cost but it also involves the cost in terms of efforts involved to produce an article.
When a seller puts a product in the market, then he tries to have it a market value more than its cost. When such market value is realised then the difference in cost and market value is surplus for the supplier or producer.
But in cases where the consumer is efficient enough to bargain such product and only pays an amount which is less than the cost, then there arises seller deficit, which is represented as a negative seller surplus.
Answer:
c. Profit of $7,000,000
Explanation:
the profit will be the difference between revenues and cost In this ase, the amount recieved for the shares and the actual amount paid for them.
we receive 12.5 and we paid each one for 10.50:
11.20 - 10.5 = 70 cents per share
we multiply this by the 10,000,000 shares issued and we get a total of:
7,000,000 gain on sale of bonds to company X
