The tal balance extracted from the books of Jewel Traders showed a total debit or Sh.5,630,400 while the credit side

For each event listed below, identify the accounts that should be used to record the economic event and the dollar amount for th

creativ13 [48]

Answer: C $9,400,000 E $600,000; B $10,000,000

Explanation:

The Company Issued bonds worth $10,000,000 but only received $9,400,000 in cash.

This means that they issued the Bonds at a discount. With the discount being the difference between how much was issued and how much was received.

This discount will be sent to the Discount on Bonds Payable account.

The Cash received of $9,400,000 will be sent to the cash account.

The company will still have to pay the entire figure of $10,000,000 in bonds so the full amount will go to the Bonds Payable account.

The Journal Entry is thus,

DR Cash $9,400,000

DR Discount on Bonds Payable $600,000

CR Bonds Payable $10,000,000

8 0

3 years ago

On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on

ololo11 [35]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

3 0

3 years ago

Both lloyd and harry are claiming patent protection for the same invention that each independently created. the rights to protec

Nonamiya [84]

In the scenario in which both Lloyd and Harry are claiming patent protection for the same invention that each independently created, the rights to protection will be awarded to <span>the one who actually completed the invention first.</span>
This follows from the American standard which states that the "first-to-invent" is awarded the patent.

7 0

3 years ago

Consider an individual who serves on the board of a bank and also sits on the board of a computer manufacturing company that bor

Elan Coil [88]

Answer:

<u>Interlocking corporate director</u>

Explanation:

Interlocking corporate director refers to an individual serving as a director on the board of multiple companies.

Interlocking directorship is not considered illegal if the companies of which the same individual serves as a director, are not competing firms.

In the given case, an individual serves on the board of a bank, also serves the board of a computer manufacturing company that usually borrows from the bank.

Here, the independence and objectivity of the director would be impaired and this may lead to a situation of conflict of interests as the director exercises sizable influence in framing the lending policies of the bank.

Thus, such a situation would be in violation and the director may have to step down from the board of one of the companies.

7 0

4 years ago

Enrico is a CPA for a large company. Recently, he noticed that the company's accounting records significantly overstated the amo

saveliy_v [14]

Answer:

The correct answer is Sarbanes-Oxley Act.

Explanation:

The Sarbanes-Oxley Act is a federal law of the United States that has generated a lot of controversy, since this Law is in response to the financial scandals of some large corporations, including cases that affect Enron, Tyco International, WorldCom and Peregrine Systems. These scandals brought down public confidence in accounting and auditing systems.

The Law takes the name of Senator Paul Sarbanes (Democrat) and Congressman Michael G. Oxley (Republican), and was approved by a large majority, both in Congress and the Senate. The legislation covers and sets new standards for the board of directors and management and accounting mechanisms of all publicly traded companies in the United States. It introduces criminal responsibilities for the board of directors and establishes some requirements on the part of the SEC (Securities and Exchanges Commission), that is, the regulatory commission of the United States stock market.

6 0

4 years ago