QUESTION 10

A company sold merchandise with a cost of $217 for $390 on account. The seller uses the perpetual inventory system. The entry

Elden [556K]

Answer:a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $217

( The answer Is not in the options given)

Explanation:

The Perpetual inventory is a method of accounting for inventory which immediately records when an inventory is sold or purchased using the available point-of-sale software systems of the particular business.

In that regard , the entry to record cost of merchandise sold

Account titles Debit Credit

Cost of goods (Merchandise sold) $217

Merchandise Inventory $217

7 0

3 years ago

Pratique Solutions offers jobs that require creativity and hires people who are enthusiastic and friendly. Their pay scale meets

zysi [14]

Answer: pay satisfaction and promotion satisfaction

Explanation:

The Job Descriptive Index is designed in order to determine the satisfaction of employees with their jobs.

Since the company's pay scale meets the industry norm but does not exceed it, and the managers tend to stay at the same job level for a long time, then the company will score low on in a JDI survey in the area of pay satisfaction and promotion satisfaction.

3 0

3 years ago

Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c

PSYCHO15rus [73]

Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

Preferred dividend = 2,000

Outstanding common stock:

= (40,000 × 2) + (10,000 × 6/12 × 2)

= 80,000 + 10,000

= 90,000

2016 basic earnings per share:

= (Net income - Preferred dividend) ÷ Outstanding common stock

= (50,000 - 2,000) ÷ 90,000

= 48,000 ÷ 90,000

= $0.53 per share

Therefore, the 2016 basic earnings per share is $0.53.

4 0

4 years ago

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

Galina-37 [17]

Answer and Explanation:

The Preparation of statement of stockholders’ equity is shown below:-

Statement of Stockholder's Equity

Power Drive Corporation

For the year ended December 31, 2018

Particulars Common Additional Retained Treasury Total

stock paid in Earning Stock Stockholder

capital equity

Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000

Issued common

stock 58,000 $3,132,000 0 0 $3,190,000

(58,000 × $1) (58,000 × $54)

Purchase treasury

stock -$307,400 -$307,400

(5,300 × $58)

Dividends -$251,955 -$251,955

((100,000 + 58,000 - 5,300) × $1.65)

Sale of Treasury

stock $13,250 $153,700 $166,950

(2,650 × $5) (2,650 × $58)

Net Income $630,000 $630,000

Balance,

December

31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595

Total Stockholder's equity is

= Common stock + Additional paid in capital + Retained earnings - Treasury stock

= 158,000 + $7,945,250 + $2,678,045 - $153,700

= $10,627,595

8 0

4 years ago

Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900

Allushta [10]

Answer:

Option B - There are significant diseconomies of scope is the correct answer.

Explanation:

Option A is, not a condition that could improve the probability that the justice department would approve the merger.

The Herfindahl-Hirschman index is based on a restricted definition of the product market or the impact of foreign competition, the merger might be allowed.

It might also be permitted if one of the firms is in financial trouble, or if significant economies of scale exist in the industry.

Significant diseconomies of scope would only serve to make the merger less likely to be accepted.

Therefore, option B is the correct answer.

6 0

4 years ago

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