Answer:
The amount credited to common stock upon conversion of the bonds is $101000
Explanation:
When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.
However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.
The amount credited to common stock=$102000-$1000=$101000
This can be shown with entries below:
Dr Bond payable $100000
Dr Bond premium $1000
Cr Common stock $101000
Answer:
b. Roma and Taylor
Explanation:
In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .
Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.
The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.
Answer:
d. $18,900 unfavorable.
Explanation:
Direct labor efficiency variance = SR*(SH-AH)
18000 = SR*(63000-61500)
18000 = 1500 SR
SR = $12
Total standard direct labor cost for February = 63000*12= $756,000
Direct labor flexible-budget variance = $774,900 - $756,000 = $18900 Unfavorable
Answer:
Limited liability company
Explanation:
A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.
It combines features of a corporation and a partnership or sole proprietorship.
This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.
Also the business will continue even if only one of the sisters remains.
So an LLC is the best option for them.
I think its all the above except for they might be trying to trick you because at sixteen a guardian or parent has to sign aswell.
