Answer: Assets are listed in descending order of liquidity
Explanation:
According to accountant principles, the assets are always listed starting with the most liquid asset. It has the special purpose of helping to the shareholders and company owners to know what assets are easily sold and become in cash flow. The most liquid asset is always the cash, it is the first in the list. Commonly the second asset listed is the inventory, then we have ththe realizable value ( it includes bonds, stocks and other stock market elements), followed by the elements available for sell, at the end we can find listed long term resources including fixed assets and intangible assets.
Answer: Prior period adjustment resulting from the correction of an error.
Explanation:
The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.
In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.
Answer:
<u>Scholarship Amount would be $45.68</u>
Explanation:
Deposits into an endowment account that pays 12% per year
Year 0 Deposit $100
Year 1 Deposit $90
Year 2 Deposit $80
Year 3 Deposit $70
Year 4 Deposit $60
Year 5 Deposit $50
Year 6 Deposit $40
First find the present worth of the gradient deposits.
P = 100 + 90(P/A, 12%, 6) - 10(P/G, 12%, 6) = $380.69
A = 380.69 (0.12)
A= $45.68
Answer:
the amount of increase in the common stock is $75,000
Explanation:
The computation of the amount of increase in the common stock is shown below;
= Number of shares of common stock sold × stated value per share
= 15,000 shares × $5 per share
= $75,000
Hence, the amount of increase in the common stock is $75,000
Answer:
<u>Transactions:</u>
1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for 340.
3. June 3 $760 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $410 after completing welding work done on account.
<u>Journal Entries:</u>
1.
June 1 Dr. Cr.
Investment $3,910
Cash $3,910
2.
June 2 Dr. Cr.
Equipment $340
Account Payable $340
3.
June 3 Dr. Cr.
Rent Expense $3,760
Cash $3,760
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $410
Welding Service Revenue $410
