Answer:
a.
Anson Industries, Inc..
Income Statement Including Comprehensive Income
for the year ended MM DD, 20Y1
$
Sales 4,000,000
- Cost of Goods Sold 2,300,000
= Gross Income 1,700,000
- Operating Expenses 1,000,000
= Operating Income 700,000
- Income Tax Expense 280,000
= Net Income 420,000
+ Other Comprehensive Income 450,000
Total Comprehensive Income 870,000
b.
Anson Industries, Inc..
Income Statement for the year ended MM DD, 20Y1
$
Sales 4,000,000
- Cost of Goods Sold 2,300,000
= Gross Income 1,700,000
- Operating Expenses 1,000,000
= Operating Income 700,000
- Income Tax Expense 280,000
= Net Income 420,000
Anson Industries, Inc..
Statement of Comprehensive Income
for the year ended MM DD, 20Y1
$
Net Income 420,000
+ Other Comprehensive Income 450,000
Total Comprehensive Income 870,000
Answer:
disposable income minus consumption expenditure
Explanation:
b. The current tax system acts as an automatic stabilizer.
c. Businesses make investment plans many month in advance.
d. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Answer with Explanation:
A "graduated lease" is a type of lease that is long-term in nature. Here, the lessor/landlord enters into an agreement with the lessee/tenant/occupant that the property that the tenant will be renting is subject to an increase or decrease in the rental fee depending on its market value as the years pass by. So, this means that the rental fee is not stable or fixed, rather it changes with times.
This lease is also called a "graded lease." An increase in rental fee is common for real estates that are being rented while a decrease in rental fee is common for equipment or machinery that are being rented.
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.
c. Journalize the adjusting entry on December 31 for the impaired goodwill.
Answer:
April 1
Debit : Patent $1,500,000
Credit : Cash $1,500,000
December 31
Debit : Amortization $125,000
Credit : Accumulated Amortization $125,000
December 31
Debit : Impairment loss $6,000,000
Credit : Accumulated Impairment loss $6,000,000
Explanation:
Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.
Amortization : is the loss of value of an asset due to passage of time.
Amortization Expense = (Cost - Residual Amount) ÷ Useful Life
= ( $1,500,000 - $ 0) ÷ 12
= $125,000
Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)
The student’s questions are regarding three transactions under business accounting: the acquisition of a patent, amortization of the patent rights, and impairing goodwill. Each requires different treatments in journalizing and adjusting entries.
The subject pertains to accounting and how to journalize transactions in business. Thus, it falls under the Business category and the complexity suggests it's at the College level.
To record the acquisition of the patent worth $1,500,000, you would first debit (increase) the Patents account and then credit (decrease) the Cash or Payables account. This aligns with the concept accounting for patents.
To journalize the adjusting entry for the amortization of the patent rights on December 31, divide the $1,500,000 over its 12 years useful life, which calculates to $125,000 each year. On December 31, debit (increase) the Amortization Expense account for $125,000 and credit (decrease) the Patents account for $(125,000).
To journalize the adjusting entry on December 31 for the impaired goodwill of $6,000,000, you would debit (increase) the Impairment Loss account for $6,000,000, and then credit (decrease) the Goodwill account for $6,000,000. This represents impaired goodwill recording.
#SPJ11
What contract is it:
a. old social
b. new social?
Answer:
Old social contract
Explanation:
Old social contract is a type of contract that emphasises the long term commitment between the employer and the employee and stable conditions are defined for both parties.
New social contract on the other hand is one that is short term, and there is little commitment to the contract from both parties.
In the given scenario Gourd Supermarkets provides extensive training program for all new employees. They then spend a day in customer service and workplace safety training each year.
This shows a long term commitment, so it is a form of old social contract.
Answer: a. Old social contract
Explanation: this is an old social contract which is defined as one between an employee and the employer (organisation, business, company or firm) where the employee contributes his/her ability, education, loyalty, and commitment to the organization, and expect wages and benefits, work, advancement, and training in return. Thus, the old social contract emphasizes on long-term commitments with stable conditions between employers and employees. The old social contract is in direct contrast with the new social contract which exists between an employee and an organization wherein the employee takes personal responsibility for employability and the employer gives challenging assignments, lateral career moves, and creative development opportunities.
Answer:
$55,800
Explanation:
The computation of the net realizable value of accounts receivable is shown below:
Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts
= $62,300 - $6,500
= $55,800
By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable