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3 years ago

HELP

Business

1 answer:

raketka [301]3 years ago

7 0

Answer:

A, From the business perspective

Explanation:

Supply will always be determined by businesses as the supply will be based on their everlasting drive to increase profits. By being able to decrease supply (shift the graph to the left) or increase (shift to the right) they will be able to maximize their profits based on their needs (ATC, Opportunity cost, marginal/revenue costs)

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Sweet Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Sweet does not have significant influence). Dur

aliina [53]

Answer:

(a) Debit Equity Investments for $11,900; and Credit Cash for $11,900.

(b) Debit Cash for $1,170; and Credit Dividend Revenue for $1,170.

Explanation:

(a) Journal entries to record the purchase of the investment

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Equity Investments 11,900

Cash 11,900

(To record the purchase of the investment.)

(b) Journal entries to record the dividends received

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Cash (w.1) 1,170

Dividend Revenue 1,170

(To record the dividends received.)

(c) Journal entries to record the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.

The journal entries will look as follows:

Accounts Title and Description Debit ($) Credit ($)

Fair Value Adjustment (w.2) 1,600

Unrealized Holding Gain or Loss - Income 1,600

(To record the fair value adjustment.)

Workings:

w.1: Cash = Dividend received = Number of shares * Cash dividend per share = 360 * $3.25 = $1,170

w.2: Fair Value Adjustment = Fair value - Common stock purchase cost = (Number of shares * Selling price per share) - Common stock purchase cost = (360 * $37.50) - $11,900 = $1,600

6 0

3 years ago

Which of the following errors would cause the adjusted trial balance to be unequal? a. The adjustment for prepaid insurance was

zalisa [80]

Answer: Option (C) is correct.

Explanation:

There is a adjustment entry for depreciation of $3,545 but the amount that is debited as depreciation expense is different from the amount that is credited as accumulated depreciation.

Depreciation Expense A/C Dr. $3,454

To Accumulated Depreciation $3,545

This will lead to an unequal adjusted trial balance.

Option 'A' and 'B' has no effect on the adjusted trail balance to be unequal because whole transaction is omitted.

Option 'D' also has no effect on adjusted trail balance because the debit and credit amount will still match.

3 0

3 years ago

Which of the following statements is false?

GenaCL600 [577]

Answer: Actual overhead costs always enter the Work-in-Process account.

Explanation:

The work-in-process account is an account where the value of goods yet to be completely produced are recorded while the overhead cost is simply a business running cost, that is cost on expenses the business makes to keep functioning.

Overhead cost is not recorded in work-in-process account, rather it is recorded as business expenses.

6 0

3 years ago

Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents.

k0ka [10]

Answer:

A- January 1, 2021

Explanation:

got it right on edge

7 0

2 years ago

XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nom

djverab [1.8K]

Answer:

Dr Rent revenue

Cr Unearned rent revenue, $4,500

Explanation:

Preparation of XYZ Company Journal entry

Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

(3/12 x $18,000 ).

Dr Rent revenue

Cr Unearned rent revenue, $4,500

(3/12 x $18,000 )

7 0

3 years ago