Answer:
a.
Dr. Cash 15000
Dr. Law Library (Asset) 6000
Cr. Mary (Capital Account) 21000
b.
Dr. Office equipment 7500
Cr. Account Payable 7500
c.
Dr. Cash 1500
Cr. Income / Revenue 1500
d.
Dr. Account Payable 3500
Cr. Cash 3500
e.
Dr. Account Receivable 4000
Cr. Income / Revenue 4000
f.
Dr. Marry (Capital Account) 2000
Cr. Cash 2000
g.
Dr. Cash 2500
Cr. Account Receivable (e) 2500
h.
Dr. Salary Expense 2500
Cr. Cash 2500
Explanation:
*Trial Balance and T accounts are made in an MS Excel file which is attached please find.
Answer and Explanation:
The computation is shown below:
a. Current price is
= D1 ÷ (Required return - Growth rate)
= ($1.20 × 1.04 ÷ (0.1 - 0.04)
= $20.8
b. Now the price in three year is
P3 = Current price × (1 + Growth Rate)^3
= $20.8 × (1.04)^3
= $23.40
c. For price in 10 year it is
P10 = Current price × (1 + Growth Rate)^10
= $20.80 × (1.04)^10
= $30.79
We simply applied the above formula
Answer:
Correct Option is B) Rochester Income Increase, Reedsburg Income No effect
Explanation:
As per IFRS,
When a company holds share of any company up to 20% then it is an associate, and in this case Rochester holds only 15% and thus will increase its net income with dividend received. (Cost method is followed)
When a company holds more than 20 % and less than 50% then the equity method is followed until and unless major significance is not exercised, generally it is exercised. In that case equity method is followed, and any income received is adjusted from cost of investment, and do not form part of income.
Answer:
d. $86,400.00
Explanation:
The computation of the total materials handling cost allocated to the prefab barns is given below:
Total Materials Handling Cost is $228,300
Total is
= 6600 ×860 + 9600 × 360
= $5,676,000 + $3,456,000
= $9,132,000
Allocation Rate = Total Materials Handling Cost ÷ Total direct labor hours
= $228,300 ÷ $9,132,000
= $0.025
Now
Total Materials Handling Cost allocated to prefab barns is
= Allocation Rate× direct albor hours for Modular Homes
= $0.025 × $3,456,000
= $86,400
