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Brut [27]
4 years ago
14

Jamison Enterprises acquired a franchise to operate a Good Burger Joint in January, 2013. The cost of the franchise was $360,000

and was estimated to have a limited life of 30 years. Early in the year 2018, the franchise was forced out of business due to lawsuits. Jamison should record which of the following series of expenses to their income statement for the years noted
A) 12,000,
B) 12,000
C) 300,000 from 2013
D) 2014 and 2018 respectively
Business
2 answers:
Nitella [24]4 years ago
8 0

Answer: A. $12000

Explanation:

Jamison Enterprises acquired a Franchise, The Franchise license is an Asset to Jamison Enterprises because they expect an inflow economic benefits in the form of Revenue from the use of this Franchise license. The Franchise License has a Useful Life of 30 years

The Franchise License would be amortized over a period of 30 year. Intangible assets like franchise License are amortized over their useful life. The same way we depreciate assets like vehicles over their useful life, Think of amortization as The Depreciation for intangible asset.

Amortization expense incurred each year will be calculated by taking Cost of Franchise License and divide it by 30 which is the useful life of the Franchise license. The amortazation expense incurred each year would be 360 000/30 = $12000

An Expense of $12000 will be will be reported on the Income statement each year from 2013 until 2017, amortization expense for 2018 will be adjusted for the number of months the business operated before closing down.

The series of expense that should be recorded in the income statement each year is $12000

goldenfox [79]4 years ago
7 0

Answer:

$12,000 for 2013 and $300,000 for 2018

Explanation:

Jamison Enterprises acquired a franchise to operate a Good Burger Joint in January, 2013. The cost of the franchise was $360,000 and was estimated to have a limited life of 30 years.

Hence the yearly franchise cost at this point is 360,00 / 30 years = $12,000

Early in the year 2018, the franchise was forced out of business due to lawsuits.

At this point the company had only operated for 5 years and have incurred franchise cost to date of 5 years x $12,000 = $60,000

Jamison should record $300,000 ($360,000 - $60,000 to date) balance of the franchise cost in its expenses to their income statement for the years 2018

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Answer:

Explanation:

The balance of payments accounts also known as balance of international payments, are the accounts in which a nation records, summarizes all transactions that a country's individuals, companies and government bodies complete with individuals, companies and government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments, such as foreign aid and remittances.

A country's balance of payments and its net international investment position together constitute its international accounts.

The balance of payments divides transactions in two accounts: the current account and the capital account. Sometimes the capital account is called the financial account, with a separate, usually very small, capital account listed separately. The current account includes transactions in goods, services, investment income and current transfers. The capital account, broadly defined, includes transactions in financial instruments and central bank reserves. Narrowly defined, it includes only transactions in financial instruments. The current account is included in calculations of national output, while the capital account is not.

3 0
3 years ago
Randy complained to his boss, Maryann, that he received the same bonus this quarter as everyone else, despite the longer hours h
const2013 [10]

Answer:

E. Working harder.

Explanation:

Motivation is getting people to work in order to accomplish a set goal. It is also the process of bringing out the best in people by making them know the reason for motivating them, which is premised on their needs not yet fulfilled.

It is the duty of manager to influence his or surbodinate positively in terms of being productive in order to improve their capacity and efficiency. A well motivated employee will have on the job satisfaction and individual self development.

Employees can be motivated through payment of incentives like bonus for working extra hours or for working on weekend which is outside of the normal working days.There is also affiliation motivation, which is a desire to socially relate with people and achievement motivation, which is a desire to purse a goal and achieve it.

As in the case above, Randy might gnore his feeling of not being adequately rewarded and work harder in next quarter.

5 0
3 years ago
Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,
suter [353]

Answer:

The answer is 14.87%

Explanation:

Solution

Given that:

A large company stock had an average return of =12.59%

The average risk free rate = 2.58%

A small company stocks average is =17.45

The next step is to find the risk premium on small-company stocks for this period

Thus,

The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate

So,

Risk premium on small-company stocks = .1745 - 0.258

=0.1487

Therefore the risk premium on small company stocks for the period was 14.87%

6 0
3 years ago
Accompanying a bank statement for Borden Company is a credit memo for $21,200 representing the principal ($20,000) and interest
Wittaler [7]

Answer:

The journal entry to record this note collection carried out by the bank should be:

Dr Cash 21,200

    Cr Notes receivable 20,000

    Cr Interest revenue 1,200

Explanation:

Notes receivable is an asset account and it probably represented a sale made on credit by the company, so when it was collected, the amount should decrease and that is done by crediting it.

On the other hand, since only $20,000 belonged to the note, the rest ($1,200) must be recorded as interest revenue. Revenues are always credited.

4 0
3 years ago
In the context of demand-supply integration, _____ includes the ways in which two or more companies will collaborate on activiti
Vedmedyk [2.9K]

Answer:

The correct answer is Relationship integration.

Explanation:

It is defined as the ability of companies to develop social connections that serve to guide their interactions when they work together. More specifically, relationship integration is the ability to develop and maintain a shared mental framework between companies that describes how they will depend on each other when they work together.

7 0
3 years ago
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