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Dahasolnce [82]
3 years ago
11

A building with an appraisal value of $128,156 is made available at an offer price of $153,050. The purchaser acquires the prope

rty for $32,829 in cash, a 90-day note payable for $26,957, and a mortgage amounting to $57,415. The cost basis recorded in the buyer's accounting records to recognize this purchase is
Business
1 answer:
elena55 [62]3 years ago
7 0

Answer:

$117,201

Explanation:

Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is

Using this formula

Cost basis=Cash+Note payable+Mortgage

Let plug in the formula

Cost basis=$32,829+$26,957+$57,415

Cost basis=$117,201

Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201

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Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

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3 years ago
2014 ending inventory was overstated by $25,000, but it was too late to correct the financial statements. Which of the following
expeople1 [14]

Answer:

C. Net income and stockholders' equity are both overstated.

Explanation:

In the income statement , ending inventory is deducted from the addition of the beginning inventory and net purchases to arrive at the cost of goods sold. Therefore, the cost of goods can be stated as an equation stated as follows:

Cost of goods sold = Beginning inventory + Net purchases - Ending inventory

From the above equation, it can be observed that if the ending inventory is overstated, cost of goods sold will be understated by that amount.

Since gross income is determined by deducting cost of goods sold from the net sales, an understated cost of goods sold will result in an overstated gross income and subsequently overstated net income.

Since net income is one of the components of the stockholders' equity, an overstated net income will leads to an overstated stockholders' equity.

Therefore, the correct option is C. Net income and stockholders' equity are both overstated.

4 0
3 years ago
How does a pension fund act as an investor?
Ronch [10]

A pension fun act as an investor by (B) The company invests the money collected from employers and/or employees.



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3 years ago
Read 2 more answers
A country that currently does not trade with other countries could benefit by
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North Korea. Lol.
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3 0
2 years ago
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You and seven other people relay your feelings and thoughts about a potential new product to a trained moderator. In​ exchange,
alukav5142 [94]

Answer:

Focus Group Interview

Explanation:

The reason is that the focus group is a small number of people who have great influence over the behavior of the consumer because of their knowledge and informed decision making. This is also because they know what changes in the environment are prominent these days and what product price is best choice for the features that the customer is willing to purchase. So the group of people (who largely interact with the customers) who has influence over the decision making of the customer to buy a particular product is Focus Group Interview.

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3 years ago
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