Answer:
$1,512,000
Explanation:
The computation of the depletion expense is shown below:
= (Purchase value of mineral mine - the estimated value of the property + development costs) ÷ estimated tons × number of tons sold
= ($5,100,000 - $300,000 + $1,500,000) ÷ 2,000,000 tons × 480,000 tons
= $1,512,000
Simply we deduct the estimated value of the property and added the development cost to the purchase value of mineral mine and then do the proportionate so that the accurate value can come
To ensure that plans are moving in the right direction, managers can use the "Planning/control cycle".
Planning/control cycle refers to the arranging which is set under a way in which there are motion activities or exercises to achieve the arranged objective. Control works direct and screen exercises for deviations from plans (i.e., accomplishment of goals). Planning utilizes input from controls to enhance/change designs and actualize correct activities where they are fundamental.
Answer:
Credit; $100
Explanation:
When the shares are authorized there is no specific entry,
When the authorized shares are issued then proceeds are debited to the cash account and the common stock account is credited by that amount.
In this case,
Common Stock will be credited by 100 * 1 =$100
Hope that helps.
Answer:
The correct words for the blank spaces are: are low-risk investments; are high-risk investments.
Explanation:
Bonds are considered to be <em>low-risk investments </em>compared to stocks because an interest rate fixed payment is made with bonds in regular periods. Instead, stocks are <em>high-risk investment</em>s since they payout dividends to stakeholders based on a company's profits implying investors will only earn a profit if the company has been able to earn income during a period. Even if that happens, the firms can retain the earnings for reinvestment.
Answer:
Interest Receivable (Dr.) $250
Interest Revenue (Cr.) $250
Explanation:
Notions Co. has borrowed money from Lemming and will have to pay cost for it which is a source of fund (revenue) for Lemming. According to the Accrual concept of accounting, revenue should be recognized when earned and not when cash is received. At year end, the interest revenue of two months has been accrued, so it needs to be recognized in the Books of Lemming.
⇒ 18,750 * 8% = 1,500 p.a.
OR Interest Revenue for two months = (1,500/12) * 2 = $250.