Answer:
B) Payment of dividends
Explanation:
Dividend is the reward, (which can either be cash or non-cash) paid by a corporation out of profit or reserve at the end of a period to its shareholders. This share of profit is a reward received by investors as a result of their investment in a corporation
Where dividend is paid out of the cash asset of the corporation, it will represent cash outflow from the corporation.
Sometimes a corporation will want to save money by paying script dividend (i.e. share dividend) such does not involve cash outflow, but issue of shares.
Answer:
Requirement 1 :
Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the invested company.
Requirement 2 :
In the books of Excel Motors:
[ Kindly find the attachment ]
<span>Real estate can be categorized into various different types.They are Residential, Commercial,Industrial,Agricultural and empty land.Real estate market value will be changed according to the type of the land,one land has good value and low tax payment other may be have less value but more tax value.Mostly commercial and industrial value will be higher than empty lands.</span>
Answer:
Wise Tools will report a $1,000 net loss for the period ending 12/31.
Explanation:
Calculation to determine which of the statements about Wise Tools is correct
Revenues $45,000
Less Expenses ($51,000)
Less Beginning Inventory ($4,000)
Add Ending inventory $9,000
Ending Net Loss -$1,000
Therefore the correct statements Wise Tools is:
Wise Tools will report a $1,000 net loss for the period ending 12/31.
Answer:
A.
Debit Unearned Revenue $11,250
Credit Sales $11,250
Explanation:
B. It is an income for the company. Prepaid subscription is an expense for the company. Therefore, it is incorrect.
C. It is contradictory as the company already recorded the first quarter transaction. Therefore, Unearned revenue should be debit. So, it is also incorrect.
D. According to the revenue recognition, revenue is recognized when they are earned. Therefore, the company acquired the cash when the company received last year. So, it is incorrect.
E. Again, cash cannot be credit. Therefore, it is incorrect.
A is the correct answer. As, when the company received the payment, unearned revenue was credit. As the income is now recorded for the first quarter, $(45,000/4) = $11,250 of unearned revenue becomes earned. So, it is debit. Since it is a sale of a company, the sale becomes credit.