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4 years ago

The following transactions were made by Ruby Inc. last year:

Business

1 answer:

Juliette [100K]4 years ago

8 0

Answer:

OPtion (C) is correct.

Explanation:

Given that,

Issuance of common stock = $100,000

Dividends paid to the company's stockholders = $2,000

Depreciation expense = $6,000

Repayment of principal on bonds = $40,000

Proceeds from the sale of the company's used equipment = $39,000

Purchase of land = $230,000

Cash flow from financing activities:

= Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds

= $100,000 - $2,000 - $40,000

= $58,000

Therefore, the net cash inflow from financing activities is $58,000.

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Corristan Company purchased equipment and incurred these costs: Cash price $24,000 Sales taxes 1,200 Insurance during transit 20

galben [10]

Answer:

$25,400.

Explanation:

International Accounting Standard 16 states that any Property, Plant, and Equipment should be initially recognized at a cost that includes all the costs that are necessary to bring the asset to its working condition. Example of such costs include:

- Purchase Price.

- Delivery Charges.

- Sales Taxes Paid, if any.

- Deduct Discounts, if any.

- Installation Costs.

- Dismantling Cost.

- Any other Directly Attributable Costs.

The standard further states that any periodic cost should be written-off to Profit or Loss as incurred. Such costs include Maintenance Costs. These are the costs that are not necessary to bring the asset to its intended use.

So in this case, the cost that should be capitalized is $25,400 (24,000 + 1,200 + 200).

Note: The insurance costs of $400 has been capitalized because it was incurred for Transit Purposes and before the asset was prepared for use.

5 0

3 years ago

The clause in an accident and health policy which defines the benefit amounts the insurer will pay is called the:

ANTONII [103]

The clause in an accident and health policy which defines the benefit amounts the insurer will pay is called the Insuring clause.
Insuring clause is a provision in an insurance policy that stipulates the risks assumed by the insurer. The insurer agrees to pay on behalf of the insured all sums that the insured shall become legally obligated to pay as damages because of bodily injury, sickness or disease, wrongful death, or injury to another person's property.

5 0

4 years ago

The following estimates have been prepared for a project:Fixed costs: $27,000Depreciation: $18,000Sales price per unit: $4Accoun

Blababa [14]

Answer: $3.10

Explanation:

Accounting breakeven = Fixed costs / Contribution margin

Fixed costs = Fixed costs + Depreciation = 27,000 + 18,000 = $45,000

50,000 units = 45,000 / Contribution margin

Contribution * 50,000 = 45,000

Contribution = 45,000 / 50,000

Contribution margin = 0.9

Contribution margin = Sales - Variable cost

0.9 = 4 - Variable cost

Variable cost = 4 - 0.9

= $3.10

4 0

3 years ago

According to GAAP, the amount of bad debt expense can be estimated by: A. Only the percent of sales method. B. Only the percent

yarga [219]

Answer:

E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.

Explanation:

The bad debt is an expense that is to be shown on the debit side of the income statement. It refers to the amount which is not collectible by the company due to partie bankruptcy

It can be estimated by the following methods using the Generally accepeted accounting principles (GAAP)

1. percent of accounts receivable method,

2. percent of sales method

3. the aging of accounts receivable method

Hence, the correct option is E.

7 0

3 years ago

What societal force was in place in mainstream American culture until the 1960s that resulted in separation of people along raci

kirza4 [7]

Answer:

segregation

Explanation:

There was a societal force that was in place in mainstream American culture until the 1960s. This societal force was segregation that resulted in the separation of people along racial and other lines.

The United States remains a segregated society in respect of housing patterns and church membership despite all the legal changes that have taken place since the 1960s.

3 0

3 years ago