Risk retention is good for the company as the good has the better strategies planned about the product mix and if the things changed in the future the company is able to conquer the loss.
<h3>What is product mix?</h3>
Product mix is the total number of products sell by the particular company, the products can be further divided into the categories and division. Many big companies have the different line products like the cosmetics, glasses, home materials and others.
Thus, Risk retention is good for the company as the good has the better strategies
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<span>In the financial industry, "securitization" refers to bundling debt, such as loans, bonds and mortgages into securities. In finance, a security is a tradable asset. They are debt securities such as bonds and then there are equity securities such as stocks. Bundling debt keeps everything organized and streamlined for people to know what they need to pay down. </span>
Answer:
Detailed solution is given in tabular form in the end for better understanding.
Answer:
Hie, the question has missing amounts / account balances relating to the following Accounts<em> Prepaid Insurance</em>, <em>Salaries and Wages Expense</em> and <em>Depreciation Expense</em>. However, both the debits and credit totals must add up to $292 as only debits are missing.
Explained and illustrated below is the approach to take on this question.
A trial balance is a list of balances (debit or credit) extracted from ledger accounts.
<u>Adjusted Trial Balance At December 31</u>
Debits Credit
$000 $000
Cash 58
Accounts Receivable 7
Prepaid Insurance (missing)
Equipment 120
Accumulated Depreciation 8
Accounts Payable 7
Common Stock 116
Retained Earnings 17
Sales Revenue 131
Insurance Expense 9
Salaries and Wages Expense (missing)
Supplies Expense 46
Depreciation Expense (missing)
Salaries and Wages Payable 11
Income Tax Expense
Income Tax Payable 13
Totals 292 292
Answer:
Explanation:
The journal entry to record the issuance of common stock is shown below:
Cash A/c Dr $30,000 (2,500 shares × $12)
To Common Stock $12,500 (2,500 shares × $5)
To Additional Paid-in Capital in excess of par - Common Stock $17,500
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
While issuing the stock, we debited the cash account and credited the common stock and additional paid-in capital account