Answer:
c. $60,000
Explanation:
Provided information,
Green Corp owns 30% of the the common stock and 100% of preference share capital of Axel Corp.
Also, Green Corp is exercising significant influence on Axel Corp.
Thus, for accounting purpose Green Corp will use equity method as the investment is more than 20%.
Any dividend received from Axel Corp on common stock will be deducted from carrying value of investment in common stock, though dividend received on preference capital will increase the profits as will be added to income statement.
Thus, dividend recognized in Income Statement = $60,000 received on preference capital.
Correct answer is
c. $60,000
Answer:
Debit Interest Expense, credit Cash and Discount on Bonds Payable.
Explanation:
The journal entry that a company needs to record for payment of interest is: a debit to the interest receivable account and a credit to the interest income account.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to cash.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to discount on bonds payable.
Answer:
Please refer to the attached
Explanation:
Please refer to the attached.
Note that in trial balance Debit side must always be equal to debit side
To respond to the structure of its industry, an organization should choose a __________.
Competitive strategy
