Answer:
Events require footnote disclosure, but not adjustment to financial statements.
Explanation:
A balance sheet is the statement of the financial position of a business at a particular period in time. So in this scenario if the balance sheet has already been prepared and bankruptcy occurred suddenly because of a natural disaster 10 days after Zero’s balance sheet date but 1 month before the issuance of the financial statements and the auditor’s report.
This requires a disclosure of the event after the balance sheet date. The event is a subsequent occurence and as such does not affect the balance sheet report.
The exception is when a subsequent event provides additional evidence of financial position as at the balance sheet date.
This is not the case here so only disclosure will be made.
Answer:
b,c,d
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries
The opportunity cost of producing a computer for Mexico= 4/10 = 0.4
for Mexico to have a comparative advantage in the production of computers, its opportunity cost for producing computers has to be lower.
we would try each of the options to know which would yield the higher opportunity cost for US
3 / 8 = 0.375
3 / 5 = 0,6
3/2 = 1.5
3 / 6 = 0.5
5, 2 AND 6 would give Mexico the comparative advantage
Answer: Debit Interest Receivable and credit Interest Revenue, $2950
Explanation:
Based on the information given in the question, we have to calculate the interest accrued and this will be:
= $590,000 × 6% × 1/12
= $590,000 × 0.06 × 0.08333
= $2949.882
= $2950 approximately
Therefore, the adjusting entry that Sandhill should make on December 31, 2020 will be to:
Debit Interest Receivable and credit Interest Revenue, $2950
Answer:
c. Decentralized
Explanation:
The very definition of a decentrilized organization is one in which management spreads authority. This means that important decisions do not only fall within the jurisdiction of top-management, but can also be taken by middle or lower management, and in some cases, even non-managerial workers.
This can help make the day-to-day operation of the firm easier because there are less bottlenecks, or authority conflicts.
Answer:
$200,000
Explanation:
Asset is recorded in the books on a value of the consideration paid at the time to acquire the asset. In this question the building is purchased by issuing $200,000 (10,000 shares x $20) value of shares.So, the building should be recorded at a value of $200,000 in the books.
The Journal Entry for the transaction is as follow:
Dr. Building $200,000
Cr. Common Stock (10,000 x $4) $40,000
Cr. Add-in-Capital common stock ($200,000-$40,000) $160,000
