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2 years ago

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in

Business

1 answer:

ratelena [41]2 years ago

8 0

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction Remark

1. Guarantee of supplier's debt (c) have no disclosure

2. Damages for disgruntled employee (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz. But with the legal case of a disgruntled employee, Cruz should disclose the information in a note. It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

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Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You mi

kupik [55]

Answer:

Find the explanation below.

Explanation:

1. The company I chose to operate would be Celebrity Hair Salon. The Celebrity Hair Salon is a standard salon with comfortable furnishings and state-of-the-art equipment intended to tend to the needs of celebrities. Clients are expected to make appointments for their services which the salon strictly adheres to.

2. I would prefer to fund this new business through debt financing. Debt funding entails borrowing funds from Creditors with the intention of paying back at a later time with the attached interest. Equity funding entails giving an investor a certain percentage of the company's returns thus making him a co-owner of the company. This affords him the right to make decisions for the business. Detaching the investor from this business is difficult because it requires buying him out.

I would prefer debt financing because I wish to retain sole ownership of the business. I can also go through some government agencies to obtain funds at lower interest rates. Moreso, there is a fixed debt repayment plan that I can set a target to meet until the debt is paid. Finally, I can regain my freedom after the payment is completed, thus regaining my business and not entitling me to anyone.

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3 years ago

Susan is a sales representative for a u.s. weapons manufacturer. she makes a $100,000 "grease" payment to a u.s. government offi

Vsevolod [243]

Answer: False

Explanation:

<em>The given statement from the following case/scenario is false</em> because in accordance to the rules of law of United States of America , the payments made to foreign officials are always deductible. Therefore the payments that are made by Susan to the Saudi officials are deductible, unless and until they are illegal .

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3 years ago

The balance in the office supplies account on January 1 was $7,362, the supplies purchased during January were $3,421, and the s

Zigmanuir [339]

Answer:

d.$8,327

Explanation:

The computation of the amount used in the adjusting entry is shown below:

= Beginning balance of office supplies + supplies purchased - ending balance of office supplies

= $7,362 + $3,421 - $2,456

= $8,327

The adjusting entry is

Supplies expense $8,327

To Supplies A/c $8,327

(Being the supplies expense is recorded)

For recording this transaction we debited the supplies expense as it increased the expense account and credited the supplies account as it reduced the asset account

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3 years ago

The following selected transactions were completed during July of the current year: July 1 Billed customers for fees earned, $72

mixer [17]

Answer:

a. Journal Entries:

July 1 Debit Accounts receivable, $72,960

Credit Fees Earned $72,960

To record fees earned.

July 4 Debit Supplies $1,900

Credit Accounts payable $1,900

To record supplies purchased on account.

July 8 Debit Cash $65,960

Credit Accounts receivable $65,960

To record cash received from customers on account.

July 11 Debit Accounts payable $840

Credit Cash $840

To record payment to creditors on account.

Cash