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nata0808 [166]
2 years ago
13

REV Co. is reviewing the accounting and disclosure requirements for its significant guarantees, commitments, and contingencies,

including litigation, as of December 31, year 3. The financial statements are expected to be available to be issued on February 10, year 4. Use the information in the exhibits above to determine the amount, if any, to recognize and whether disclosure is required in REV's financial statements as of and for the year ended December 31, year 3.
Business
1 answer:
victus00 [196]2 years ago
5 0

Answer:

REV Co. has made disclosure in notes to the financial statement section. The disclosures include the details about related party transaction which was carried out by the brother of Chief Operating Officer. It is ensured that the transaction was completed on arm's length.

Explanation:

Disclosures are mandatory for any company which is listed. The companies provide details of specific transactions in Notes to the Financial statements. These additional information provides details of transaction to the shareholders and removes any ambiguity in the transaction. The purpose of disclosures is to ensure the shareholders that the company has not incurred any fraudulent activity in certain transactions and all transactions are fair and complies with International Accounting Standards.

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For question 2b, can anyone explain to me whether this statement is correct or. not ​
lawyer [7]
Its correct because tge more cheeper it is the more will eat and she will make goid money and the higher price will take her shop in loss
4 0
3 years ago
ou wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $32,000 f
AleksAgata [21]

Answer:

Annual contributions to the retirement fund will be $6,347.31

Explanation:

First find the Present Value of the Annuity giving payments of $32,000 annually for 25 years at the rate of 10%.

Using a Financial Calculator enter the following data

PMT = $32,000

P/y = 1

N = 25

R =  10%

FV = 0

Thus, the Present Value, PV is $290,465.28

At the time of retirement (in 20 years time) the Value of the annuity fund is $290,465.28.

Next we need to find the Payments PMT to reach this amount in 20 years time at the interest rate of 8%

Using a Financial Calculator enter the following data

FV = $290,465.28

N = 20

R = 8 %

PV = $0

Thus, the Payments, PMT required will be $6,347.3080

Conclusion :

Annual contributions to the retirement fund will be $6,347.31

3 0
3 years ago
Report Assessment: Givens Graphics Company was organized on January 1, 2010, by Sue Givens. At the end of the first 6 months of
Charra [1.4K]

Answer:

Givens Graphics Company

(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.):

1. Debit Supplies Expense $2,400

Credit Supplies $2,400

To accrue supplies used to date.

2. Debit Interest Expense $750

Credit Interest Payable $750

To accrue interest due.

3. Debit Insurance Expense $600

Credit Insurance Prepaid $600

To accrue the insurance expense for 4 months.

4. Debit Consulting Fees (Unearned) $4,500

Credit Consulting Fees Earned $4,500

To accrue earned consulting fees.

5. Debit Accounts Receivable $2,000

Credit Graphic Revenue Earned $2,000

To accrued earned revenue.

6. Debit Depreciation Expense $1,000

Credit Accumulated Depreciation $1,000

To record depreciation charge for six months.

(b) Adjusted trial balance:

Cash                             $ 9,500

Accounts Receivable    16,000

Equipment                    45,000

Insurance Expense           600

Insurance Prepaid          1,200

Salaries Expense         30,000

Supplies Expense          2,400

Supplies                          1,300

Advertising Expense      1,900

Rent Expense                 1,500

Utilities Expense            1,700

Notes Payable                              $ 20,000

Interest Expense             750

Interest Payable                                    750

Depreciation Expense  1,000

Accumulated Depreciation                1,000

Accounts Payable                              9,000

Sue Givens, Capital                         22,000

Graphic Revenue                             54,100

Unearned Consulting Revenue        1,500

Consulting Revenue                         4,500

Total                           $112,850   $112,850

(ci) Income statement for the 6 months ended June 30:

Graphic Revenue                             $54,100

Consulting Revenue                           4,500

Total Revenue                               $58,600

Less Expenses:

Insurance Expense           600

Salaries Expense         30,000

Supplies Expense          2,400

Advertising Expense      1,900

Rent Expense                 1,500

Utilities Expense            1,700

Interest Expense             750

Depreciation Expense  1,000        $39,850

Net Income                                     $18,750

(cii) Owner's equity statement for the 6 months ended June 30:

Sue Givens, Capital    $22,000

Retained Earnings         18,750

Total Equity                $40,750

(ciii) Balance sheet at June 30:

Assets:

Cash                                                $ 9,500

Accounts Receivable                       16,000

Insurance Prepaid                              1,200

Supplies                                              1,300

Equipment                                       45,000

Total Assets                                 $73,000

Liabilities + Equity:

Notes Payable                             $ 20,000

Interest Payable                                   750

Accumulated Depreciation               1,000

Accounts Payable                             9,000

Unearned Consulting Revenue       1,500

Sue Givens, Capital                       22,000

Retained Earnings                          18,750

Total Liabilities + Equity            $73,000

Explanation:

a) Unadjusted Trial Balance at June 30:

Cash                             $ 9,500

Accounts Receivable    14,000

Equipment                    45,000

Insurance Expense         1,800

Salaries Expense         30,000

Supplies Expense          3,700

Advertising Expense      1,900

Rent Expense                 1,500

Utilities Expense            1,700

Notes Payable                              $ 20,000

Accounts Payable                              9,000

Sue Givens, Capital                         22,000

Graphic Revenue                             52,100

Consulting Revenue                         6,000

Total                       $109,100       $109,100

b) Adjusting Journal Entries are end of period adjustments (accrued expenses and revenue, unearned revenue and prepaid expenses, and depreciation charges) made to the accounts to match them to the accrual basis of generally accepted accounting principles.

6 0
3 years ago
On December 1 of Year 1, Jones, a self-employed cash basis taxpayer, took out a loan to use in her business. The loan principal
Phoenix [80]

Answer: $6,000

Explanation:

When expenses such as this interest expense are for 12 months or more, the deduction will need to be evenly spread over the period that they apply to. As the loan was to be repaid in 24 months, the interest payment deductions should be evenly spread over 24 months.

= 12,000/24

= $500

That means that for Year 2, the relevant deduction will be for the 12 months in it;

= 500 * 12

= $6,000

4 0
3 years ago
Who may give opinions concerning the status or validity of title to real estate?
PIT_PIT [208]

The title company or the lawyer can be one of the person to approach or to ask opinions from in regards with the status or the validity of the title to the real estate but it is not advisable to ask the real estate licensee for they could only provide facts in regards with the title.

6 0
3 years ago
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