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3 years ago

Limited Liability Companies (LLCs) are gaining in popularity over sub-chapter S corporations because:_____.

Business

1 answer:

Kisachek [45]3 years ago

7 0

Answer:

E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure

Explanation:

Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.

This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.

Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability

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What is the total retail market value of all goods and services produced in a nation during a given period, usually a year?

Marianna [84]

I do believe that is the gross domestic product!

6 0

3 years ago

Pirates Incorporated had the following balances at the beginning of September.

dimulka [17.4K]

Answer:

Journal Entries:

September 1:

Debit Cash $3,700

Credit Service Revenue $3,700

To record the provision of services for cash.

September 2:

Debit Land $5,400

Credit Long-term Note Payable $5,400

To record the purchase of land from Crimson company.

September 8:

Debit Accounts Receivable $5,000

Credit Service Revenue $5,000

To record the provision of services on account.

September 10:

Debit Supplies $1,000

Credit Accounts Payable $1,000

To record the purchase of supplies on account.

September 13:

Debit Long-term Notes Payable $3,000

Credit Cash Account $3,000

To record the payment to Crimson Company on long-term note.

September 18:

Debit Cash Account $4,000

Credit Accounts Receivable $4,000

To record the cash receipt from customers.

September 20:

Debit Rent Expense $800

Credit Cash Account $800

To record the payment of September's rent.

September 30:

Debit Utilities Expense $1,500

Credit Cash Account $1,500

To record the payment of September's utility bill.

September 30:

Debit Salaries Expense $3,000

Credit Cash Account $3,000

To record the payment of salaries for the month.

September 30:

Debit Dividend $1,000

Credit Cash Account $1,000

To record the payment of cash dividend to shareholders.

Explanation:

a) PIRATES INCORPORATED

Trial Balance

As of September 1

Accounts Debits Credits

Cash $5,500

Accounts Receivable 1,500

Supplies 6,600

Land 10,200

Accounts Payable 6,500

Notes Payable 2,000

Common Stock 8,000

Retained Earnings 7,300

Totals $23,800 $23,800

b) Pirates' Journal entries are made as business transactions occur on a daily basis. They are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.

5 0

4 years ago

Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.

ratelena [41]

Answer:

Answer for task 1: Increase

Answer for task 2: debt

Answer for task 3: -13.33

Answer for task 4: -14.00

Answer for task 5: reserve requirement

Explanation:

Task 1:

In the given question, the owner has borrowed $100 supplement to their existing reserves. Since the owner has borrowed, the value of debt would increase.

Task 2:

Leverage ratio before borrowing:

Leverage ratio = $\frac{Total assets}{Capital}$

Leverage ratio = $\frac{200 + 800+1000}{-150}$

Leverage ratio = -13.33

The leverage ratio before borrowing is - 13.33

Task 3:

Leverage ratio after borrowing:

Leverage ratio = $\frac{Total assets}{Capital}$

Leverage ratio = $\frac{2000 + 100}{-150}$

Leverage ratio = -14.00

The leverage ratio after borrowing is - 14.00

Task 4:

This would also bring the leverage ratio from its initial value of -13.33 to a new value of -14.00.

Task 5:

Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.

The option is "b"

When determining how to allocate their assets bankers take into account the reserve requirement.

3 0

4 years ago

An ethical issue is a problem, situation, or opportunity a. requiring an individual, group, or organization to choose among seve

katovenus [111]

Answer: Requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Explanation:

An ethical issue is a point where an Individual/Organization has to make a decision on whether an action taken or yet to be taken, is right or wrong, ethical or unethical.

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3 years ago

Sparks Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017

Korvikt [17]

Answer:

We can assume that Sparks Corporation is going to pay preferred stockholders first:

preferred stock dividends = $100 x 8% x 3,000 = $24,000

If the corporation doesn't owe any previous dividends to preferred stockholders, then the remaining $81,000 (= $105,000 - $24,000) should be distributed to common stockholders.

Each preferred stock will receive a $8 dividend. I don't know the amount of outstanding common stock, so it is not possible to determine how much dividend will be distributed for each common stock outstanding.

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3 years ago