E-businesses use the physical rather than the virtual value chain

Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga

Misha Larkins [42]

Answer:

Option C. Debit Cash and credit Stock Investments

Explanation:

The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.

So mathematically,

Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received

Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000

The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.

So the double entry would be:

Dr Cash $15,000

Cr Dividends $15,000

So the option C is correct.

3 0

3 years ago

A management concept based on an understanding of the changing wants and needs of customers, and which leads to flexible product

goldfiish [28.3K]

Answer:

customer orientation

Explanation:

customer orientation can be regarded as business approach where the company helps the customer to achieve their aim and goals.

4 0

3 years ago

Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list

svetoff [14.1K]

Answer:

1. November 17

Accounts receivable 77,000

Sales revenue 77,000

November 26

Dr Cash 74,690

Dr Sales Discounts 2,310

Cr Accounts receivable 77,000

2. November 17

Dr Accounts receivable 77,000

Cr Sales revenue 77,000

December 15

Dr Cash 77,000

Cr Accounts receivable 77,000

Explanation:

1. Preparation of the journal entries to record the sale on November 17 and collection on November 26, 2021

November 17

Accounts receivable 77,000

Sales revenue 77,000

[Price = 200 units * $550 *(100%-30%) = 77,000]

November 26

Dr Cash 74,690

(77,000-2,310)

Dr Sales Discounts 2,310

(77,000*3%)

Cr Accounts receivable 77,000

2.Preparation of the journal entries to record the sale on November 17 and collection on December 15, 2021,

November 17

Dr Accounts receivable 77,000

Cr Sales revenue 77,000

[Price = 200 units * $550 *(100%-30%) = 77,000]

December 15

Dr Cash 77,000

Cr Accounts receivable 77,000

4 0

4 years ago

Poppy is interested in computer networking. What online resource can she use to find out the education and training for this car

andrew-mc [135]

Occupational Outlook Handbook!

3 0

3 years ago

Pickwick Production offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the b

julsineya [31]

Even though the company is no longer able to pay the retirees, they are still protected because The Pension Benefit Guarantee Corporation will pay a basic benefit. 

The Pension Benefit Guarantee Corporation:

Was created to protect the pensions of millions of Americans
Provides a basic benefit to pensioners who need pension payments when their companies no longer pay them

The basic benefit is a percentage of the benefits the retirees receive from their normal plan so it is not much. Retirees will often have to supplement this option.

In conclusion, The Pension Benefit Guarantee Corporation will pay out something to the retirees.

Find out more at brainly.com/question/7331178.

4 0

2 years ago