Answer:
$651,000
Explanation:
The balance in the investment account as at 31st December is calculated as;
Investment account balance January 1, 202X
$624,000
Add:
30% of Turks services inc. $120,000
Net income
$36,000
Less :
30% of $30,000 dividend paid
($9,000)
Investment account balance December, 31 202X
$651,000
Answer:
* The company’s degree of operating leverage: 1.38;
* The impact on net operating income of a 22% increase in sales: it will increase by 30.4%;
* New contribution format income statement:
Engberg Company
Contribution format income statement
Amount Percentage of sales
Sales $176,900 100%
Variable expenses 70,760 40%
Contribution margin 106,140 60%
Fixed expenses 24,000
Net operating income 82,140
Explanation:
* The company’s degree of operating leverage = Contribution / profit = 87,000/63,000 = 1.38
* The impact on net operating income of a 22% increase in sales is calculated as: Degree of operating leverage x % changes in sales revenue = 1.38 x 22% = 30.4%.
* new contribution format income statement is shown in the answer part.
Answer:
The journal entry for J. Laney to record this transaction is
Dr legal expenses $12,990
______Cr Common stock $3,100
_______Cr Share premium $8,990
Explanation:
The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.
Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.
Share premium = ($3.90 - $1) × 3,100
Share premium = $8,990
Answer: Arial. 12 and black
Explanation: It is the most professional and clear to read. It is very important to use fonts, sizes, and colors people can clearly read.
One common advantage of long term investment is higher return.
The longer you stay on an investment the bigger possibility to earn bigger interest and return. You might sometimes experiences losing but still you have the chance to get back what you loss over the time.
