Answer:
Line Stretching
Explanation:
A company normally makes an up-market stretch to obtain higher profit margins, achieve market growth, or position itself as a complete producer.
Answer:
Journal entry to record depletion expense
Depreciation expense $280,000 (debit)
Accumulated depreciation $280,000 (credit)
Explanation:
The coal mine is an economic resource controlled (ownership of risks and benefits) by Last year, Mountain Top, Inc as a result of past event (purchase transaction) from which economic benefits are expected to flow into the business (cash from sale of minerals).Therefore the coal mine is an asset!
The asset is being depleted as it is being used. This is called depreciation.
Depreciation expense in this case is calculated as :
Depreciable Account × Current harvest as a percentage of total estimated tons available
(900000-100000)× 70000/200000 = $280,000
Answer:
(Debit) Depletion expense 280,000
(Credit) Accumulated depletion 280,000
Explanation:
The coal mine is an economic resource controlled (ownership of risks and benefits) by Mountain Top, Inc as a result of past event (purchase transaction) from which economic benefits are expected to flow into the business (cash from sale of minerals).We need to record the DEPLETION of what was mined this year.
The asset is being depleted as it is being used. This is called DEPLETION.
(Cost of Asset - Salvage Value) × Current Units / Estimated Units = Depletion Amount
(900000-100000)× 70000/200000 = $280,000
b) Evaluate independence matters not addressed in the code of professional conduct.
c) understand the rules on the confidential client information and acts discreditable to the profession.
d) more easily interpret conflicts of interest and subordination of judgement by a member.
Option C is the correct answer. The AICPA's conceptual framework for independence is utilized or used to assess any challenges to members' independence.
Litigation, adverse interest between or among the CPA firm and the client, self-interest, familiarity outcoming in a financial benefit result to the CPA firm, CPA firm owning stock in the client's firm, and so on are all examples of threats
In the new AICPA Code, two conceptual frameworks;
The conceptual framework strategy is one manner in which warnings to completely comply with rules originating from a specific link or condition that are not covered by the code can be;
Therefore, Option C) "Understand the rules of confidential client information and professional misconduct." is the correct answer.
To know more about these frameworks, click below:
Members should use the AICPA conceptual framework for independence to understand the rules on the confidential client information and acts discreditable to the profession.
Option C
Explanation:
Two conceptual frameworks, one each for participants in public accounting and one for participants in the sector, represent a major change to substance in the updated AICPA Code.
In all of these two implementation frameworks, the conceptual framework strategy is one way in which warnings to fully comply with rules arising from a specific connection or circumstance which are not covered by the code can be identified, assessed and addressed.
Answer:
Credit of $80,000
Explanation:
Big-Mouth Frog Corporation Calculation for Retained earnings
Using this formula
Retained earnings =Revenue- Expenses
Where,
Revenue =$200,000
Expenses =$180,000
Let plug in the formula
Retained earnings =$200,000-$180,000
Retained earnings =$80,000
Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000
The amount of the debit or credit to Retained Earnings when the Income Summary is closed for Big-Mouth Frog Corporation would be a credit of $50,000.
The Big-Mouth Frog Corporation's final balance in Retained Earnings is determined by calculating its net revenue (revenues minus expenses) and then subtracting any dividends. In this case, the corporation's net revenue is $200,000 (revenue) - $120,000 (expenses) = $80,000.
Then, subtract the dividends from the net revenue: $80,000 - $30,000 (dividends) = $50,000.
So, the amount of the Retained Earnings would be a credit of $50,000, when Income Summary is closed to Retained Earnings.
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b. On April 1, OP Co. issues no-par value common stock for $73,000 cash.
c. On April 6, MPG issues 2,300 shares of $15 par value common stock for $42,000 of inventory, $150,000 of machinery, and acceptance of a $92,000 note payable.
Answer:
The answer is given below;
Explanation:
a. Cash Dr.$302,000
Capital (44,000*5) Cr.$220,000
Paid in Capital in excess of par Cr.$82,000
b. Cash Dr.$73,000
Capital Cr.$73,000
c. Cash Dr.$42,000
Capital 2,300*15 Cr.$34,500
Paid in capital in excess of par Cr.$7,500
Machinery Dr.$150,000
Cash (150,000-92,000)Cr.$58,000
Note payable Cr.$92,000
Answer:
Given that,
Beginning capital of Coburn = $55,000
Beginning capital of Webb = $95,000
Partnership earned net income = $71,000
Coburn made drawings = $17,000
Webb made drawings = $25,000
Income-sharing ratio = 30:70
Coburn's share in profits = Net income earned × 30%
= $71,000 × 0.3
= $21,300
Webb's share in profits = Net income earned × 30%
= $71,000 × 0.7
= $49,700
Therefore, the journal entry is as follows:
Profit and loss A/c Dr. $71,000
To Coburn's capital A/c $21,300
To Webb's capital A/c $49,700
(To record the allocation of net income)
Answer: $20
Explanation:
The sales commission is 6% and the selling price per unit is $340.
The Sales commission per unit saved therefore is;
= 340 * 6%
= $20.40
= $20