1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergiy2304 [10]
3 years ago
7

On January 2, Yorkshire Company acquired 29% of the outstanding stock of Fain Company for $440,000. For the year ended December

31, Fain Company earned income of $114,000 and paid dividends of $35,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Business
1 answer:
Virty [35]3 years ago
3 0

Answer:

1. Jan 2 Dr Investment in Fain company stock$440,000

Cr Cash $440,000

2. Dec 31 Dr Investment in Fain company stock 33,060

Cr Income of Fain company 33,060

3. Dec 31 Dr Cash $10,150

Cr Investment in Fain company stock $10,150

Explanation:

Preparation of the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

1.Preparation of the entries for Yorkshire Company for the purchase of the stock

Jan 2 Dr Investment in Fain stock$440,000

Cr Cash $440,000

2. Preparation of The journal entry for the share of Fain income

Dec 31 Dr Investment in Fain stock 33,060

Cr Income of Fain company 33,060

(29%* $114,000)

3. Preparation of the journal entry for the dividends received from Fain Company.

Dec 31 Dr Cash $10,150

Cr Investment in Fain company stock $10,150

(29%$35,000)

You might be interested in
Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of t
Anna11 [10]

Answer:

The correct answer is Demand is inelastic, but not perfectly.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

4 0
3 years ago
_____ is a delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outri
zhuklara [117]

Answer:

b. SaaS

Explanation:

The full form of SaaS is software as a service. It is a software which is to be paid by per user rather than buying the outright of the software. It is a subscription based where the user must have to pay the subscription fees on a monthly or yearly basis. When the subscription tenure is expired the user must have to pay the charges again to take the service

Therefore the option b is correct

3 0
3 years ago
Sweat equity, and other methods of reducing the initial cost of getting a company off the ground without resorting to amassing o
vovangra [49]

Answer:hes wrong i just failed a mf test cause of it the right answer is bootstrapping on oddy

Explanation:

3 0
3 years ago
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

4 0
2 years ago
On January 1, $5,000,000, 10-year, 10% bonds were issued at $5,200,000. Interest is paid annually each January 1. The straight-l
Mnenie [13.5K]

Answer:

$20,000 premium is amortized at the end of the first year.

Explanation:

Straight line amortization:

premium amortized = Premium / number of years

                                 = ($5,200,000 - $5,000,000) / 10 years

                                 = $200,000 premium / 10 years

                                 = $20,000

Therefore, $20,000 premium is amortized at the end of the first year.

3 0
3 years ago
Other questions:
  • Many insurers pay benefits based on the average fee charged in a geographical area. This is referred to as which of the followin
    13·1 answer
  • Because __________ often provide little benefit to consumers, governments have, at times, been asked to rebalance markets and re
    8·1 answer
  • The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corres
    6·1 answer
  • Select the correct statement from the following. Multiple Choice A fixed cost structure offers less risk (i.e., less earnings vo
    7·2 answers
  • Which of the following represents frictional unemployment? i. The demand for refrigerators falls when the economy enters a reces
    9·1 answer
  • To fund your dream vacation, you plan to save $1,475 per year for the next 15 years starting one year from now. If you can earn
    6·1 answer
  • The accounting equation can be stated as
    6·1 answer
  • Audience quality, audience engagement, and editorial quality are most likely to be considered when a media planner ________.
    15·1 answer
  • Many people who do not smoke cigars are bothered by the odor of cigar smoke. If private contracting is impossible, will too many
    9·1 answer
  • what is crowdsourcing? a. it is the act where a group of people moves from one country to another while looking out for better w
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!