Answer:
Debit Depletion Expense $88,095
Credit Accumulated Depreciation for Coal Mine $88,095
Being the record of the depletion expense on the acquired coal Mine.
Explanation:
Step 1: Compute the depletion expense for the coal mine for that first year
Formula= (Depreciable Cost/ Total Quantity of Coals) x The Quantity of Extracted Coals
Depreciable Cost= Cost of the Coal Mine - Value that can be salvaged
Cost of Coal Mine = Cost of Acquisition + Intangible Development Costs + Fair Value of Obligation
Cost of Coal Mine = $444,000 + $111,000 + $88,800 = $643,800
Depreciable Cost = $643,800 - $177,600
= $466,200
Depletion Expense based on Formula
= ($643,800/4,440 tons) x 839 tons extracted the first year
= $88,095
Step 2: Prepare the Journal Entry for the Depletion
Debit Depletion Expense $88,095
Credit Accumulated Depreciation for Coal Mine $88,095
Being the record of the depletion expense on the acquired coal Mine.
Please Note:
Depletion Expense is the expense that is usually incurred when utilizing natural resources such as coal and it is usually charged as expense against profit
The Total cost of coal Mine is a sum of all relevant costs including cost of acquisition, fair value of obligation and intangible development costs.
B. opportunity cost.
C. nonsatiety
D. rationality.
Answer:
B. Opportunity Cost
Explanation:
Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.
Opportunity cost is the cost of next best option forgone while choosing a particular option.
Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.
Example : Production Possibilities of 2 countries, 2 goods :-
Good X Good Y Opportunity Cost (Goods Ratio)
Country A 10 30 1:3 (10/30)
Country B 5 10 1:2 (5/10)
Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.
b. False
a. Determine the balance in the Retained Earnings account as of January 31, Year 1.
b. Determine the balance in the Revenue and Expense accounts as of January 31, Year 1.
c. Determine the balance in the Retained Earnings account as of December 31, Year 1, before closing.
d. Determine the balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.
e. Determine the balance in the Retained Earnings account as of January 1, Year 2.
f. Determine the balance in the Revenue and Expense accounts as of January 1, Year 2.
Answer:
a. $2,700
b. Revenue = $7,500 and Expenses = $4,800
c. $37,700
d. Revenue = $93,500 and Expenses = $55,800
e. $37,700
f. Revenue = $0 and Expenses = $0
Explanation:
a. Balance in the Retained Earnings account as of January 31, Year 1.
Revenue $7,500
Less Expenses ($4,800)
Net Profit $2,700
Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends
= $ 0 + $2,700 - $ 0
= $2,700
b. Balance in the Revenue and Expense accounts as of January 31, Year 1.
Revenue = $7,500
Expenses = $4,800
c. Balance in the Retained Earnings account as of December 31, Year 1, before closing.
Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends
= $2,700 + ($86,000 - $51,000) - $0
= $37,700
d. Balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.
Revenue ($7,500 + $86,000) = $93,500
Expenses ($4,800 + $51,000) = $55,800
e. Balance in the Retained Earnings account as of January 1, Year 2.
Retained Earnings of December 31, Year 1 = Retained Earnings of January 1, Year 2
= $37,700
f. Balance in the Revenue and Expense accounts as of January 1, Year 2.
Revenue = $0
Expenses = $0
Answer:
Option B ⇒ The annual interest rate on Note A is 9.35% .
Explanation:
Note B has an accrued interest for six months during 2013: $220,000 x .08 x 6/12 = $8,800.
The remainder of the accrued interest, $7,200 ($16,000 - $8,800) was from Note A, which was held for seven months in 2013.
Therefore, we have the following: $132,000 x annual interest rate x 7/12 = $7,200.
Thus, the annual interest rate on Note A would be ($7,200/132,000) x 12/7 = 9.35%.
Option B ⇒ 9.35% is the correct answer.
Answer:
P905,000
Explanation:
Initial share premium - ordinary = P900,000
Total share premium = P900,000 + (2,000 * P5) - (500 * P10) = P900,000 + P10,000 - P5,000 = P905,000
Therefore, Hahn should report P905,000 as total share premium at December 31, 2012.
May 15 Purchase 400 shares of treasury stock for $26 per share.
July 10 Reissue 200 shares of treasury stock purchased on May 15 for $31 per share.
October 15 Issue 200 shares of preferred stock for $36 per share.
December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)
December 31 Pay the cash dividends declared on December 1.
Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2018, is $9,900.
Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger:
Required:
1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
2. Prepare the statement of stockholders' equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Explanation:
Attached herewith is a picture that explains all that is needed concerning this question. Thank you and i hope it helps you as you go through
The stockholders' equity section of the balance sheet as of December 31, 2018, shows Preferred Stock: $60,000, Common Stock: $64.00, Additional Paid-in Capital: $125,600, Treasury Stock: ($6,400), Retained Earnings: $ 50,420, and Total Stockholders' Equity: $229,680. The statement of stockholders' equity for the year ended December 31, 2018, shows the effects of the various transactions during the year, including stock issuances, treasury stock purchases and reissues, net income, and cash dividends declared.
Stockholders' equity section of the balance sheet as of December 31, 2018:
Statement of Stockholders' Equity for the year ended December 31, 2018:
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