The table below shows a summary of Kaitlin's credit card statement for the month of February.

On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $672,000 conside

bogdanovich [222]

Answer:

Question a:

The non-controlling interest of Rockne´s 2018 net income is $111,000.- calculated by taking 30% of Rockne´s net income of $370,000.-

Question B:

There are 3 entries required to eliminate te sale of goods form rochne to doone.

The first entry eliminates the sales recorded by rockne against te inventory or cost of goods sold by recorded by doone. To consider, the 60% of the purchases went trhough cost of good sol d and 40% of the purchases remain in inventory until the following year. Here is the engru:

Debit/sales/$530

Credit/COGS/ ($318) 60%

Credit inventory ($212) 40%

The next entry has to do with the amount of inventory that remained from the last intercompany transaction. This is caclulated usin 40% of 2017 sales, which were $430. So:

Debit inventory $172

Credit Cogs ($172)

The last part is to eliminate the recievable on the book of rockne when they made te sale

Debit Payable $530

Credit receivable ($530)

6 0

2 years ago

Gary and Wilma Johnson plan to open a bus tour business taking people from their small City to historic sites along the east coa

Dovator [93]

The answer to the given question above would be Profit Margin. On the given scenario above, since they will be offering different kinds of services at once, what they should pay attention to is the profit margin or the net margin. Profit margin serves as the measurement of profitability. This is expressed in percentage and shows how much the return sales are that are generated by the company based on the amount they have initially invested.

4 0

2 years ago

Read 2 more answers

Bonnie and Clyde each own one-third of a fast-food restaurant, and their 13-year-old daughter owns the other shares. Both parent

yanalaym [24]

Answer:

Net income = $180,000

- salaries = ($30,000 + $35,000 + $10,000 = $75,000)

adjusted net income = $105,000

the adjusted net income must now be divided equally between the 3 partners:

Bonnie: $35,000
Clyde: $35,000
daughter: $35,000

Their yearly gross income:

Bonnie: $35,000 + $30,000 = $65,000
Clyde: $35,000 + $35,000 = $70,000
daughter: $35,000 + $10,000 = $45,000

total taxable income = $65,000 + $70,000 + $45,000 = $180,000

7 0

2 years ago

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra

EleoNora [17]

Answer:

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory 2,100

Nov. 30

Dr Warranty Expenses 630

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

Dec. 29

Dr Warranty Liability 600

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

Cr To Warranty Liability 900

2)a. Warranty Expenses= $630

2b. Warranty Expenses= $1,320

3). Warranty Expenses= $900

4). Estimated Warranty Liability Account $1,050

5). Estimated Warranty liability account $900

Explanation:

Preparation of the Journal entries for Lobo Co

Journal Entries for 2016 for Lobo Co

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory (20*$105) 2,100

Nov. 30

Dr Warranty Expenses 630

($7,875*8%)

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

(15*$20)

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

(220 * $20)

Dec. 29

Dr Warranty Liability 600

(30*$20)

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

($16,500*8%)

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

(150*$15)

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

(50*$20)

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

(11,250*8%)

Cr To Warranty Liability 900

2)a. Warranty Expenses for Nov. 2016

Warranty Expenses= $7,875*8%

Warranty Expenses= $630

2b. Warranty Expenses for Dec. 2016

Warranty Expenses= $16500*8%

Warranty Expenses= $1,320

3). Warranty Expenses for Jan. 2017

Warranty Expenses= $11,250*8%

Warranty Expenses= $900

4). Estimated Warranty Liability Account as on Dec. 31, 2016

Estimated Warranty Liability Account= $630 + $1,320 - $300 - $600

Estimated Warranty Liability Account= $1950- $900

Estimated Warranty Liability Account= $1,050

5). Estimated Warranty liability account as on Jan. 31, 2017

Estimated Warranty liability account = $1,050 + $900 - $1,050

Estimated Warranty liability account= $900

7 0

2 years ago

From each paycheck of your afterschool job, you’re able to save $45 toward the coat. You get paid twice a month. How many months

RoseWind [281]

Answer:4

Explanation:The total in 4 months would equal 360

6 0

1 year ago