Total equity of the company is the amount of invested plus the income generated during the year. If any dividend is paid during the year, the amount of dividend is subtracted before arriving at the ending shareholders’ equity.
Ending shareholders’ equity = Amount invested + Net Income – Dividend
= $15000 + ($35000- $23000) - $2000
= $27000
Therefore, shareholders’ equity balance would be $27,000.
Answer:
It adds an additional expense which means a percentage of profits are depleted. However, it contributes to the wellbeing of the employees showing that they are cherished and have the opportunity to earn benefits which can play a role in motivating them. Due to this it is more likely the workforce would be more comfortable working for the organisation thus leading to a higher chance at success.
Answer:
Debit Credit
Cash 1,000,000
Note receivable 1,000,000
Cash 70,000
Interest receivable 70,000
Explanation:
At December 31 2021 it would be the end of maturity of the 2 year note so the note would be have to be paid in full, so Heinlein assoc will receive $1,000,000 in cash for the note. Also because it is the end of the year they will also receive 7% interest which is (0.07*1,000,000)= 70,000
The Heinlein Assoc will debit cash by 1,000,000 and credit the note receivable by the same amount and they will debit 70,000 cash and credit interest receivable by 70,000.
Answer:
If a CPA does an audit irresponsibly, the CPA will be held liable to third parties who were recognized and not foreseeable to the CPA for gross negligence.
It needs to be specified if the third party had been “anticipatable,” liability; it may be recognized for ordinary negligence within a Rosenblum v. Adler decision.
Explanation:
Real Estate Investment Trusts or REIT sometimes referred to as the "mutual funds" of the real estate business, were created in 1960 as an aspect of the federal tax law to encourage small investors to combine their resources with the resources of others so the companies could, together, raise venture capital for real estate transactions.
