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2 years ago

Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below:

Business

1 answer:

ale4655 [162]2 years ago

3 0

Answer:

Explanation:

From the question, we are told to

select "No" if it would not affect Retained Earnings. Conversely if the transaction would affect Retained Earnings, then record the amount of the increase or (decrease) to this account under the "Yes" column.

Retained Earnings

Retained Earnings is the remaining income in total that a company/organization has after she has paid dividents to her shareholders and all expenses.

Note that: whenever, there is rise or fall in net income as well as the dividends given shareholders, the Retained earnings are affected, which means anything that bring about increase or decrease of net income definitely affect retain earning.

""When the dividend given to shareholders

or other expenses is less that net income for the company ,then it means

increase in retain earning and vice versa.""

A)NO, it would not affect Retained Earnings.

This is raw material needed for the business

B)NO, it would not affect Retained Earnings.

C)yes,it would affect Retained Earnings by decrease of (-45,000)

D)yes, it would affect Retained Earnings by decrease of(-21,000)

E)yes, it would affect Retained Earnings by increase of(450,000)

F))NO, it would not affect Retained Earnings

G)NO, it would not affect Retained Earnings

H)NO, it would not affect Retained Earnings

I)NO, it would not affect Retained Earnings

J) yes, it would affect Retained Earnings by decrease of(-220,000)

K)NO, it would not affect Retained Earnings

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FB Corp. prepares its financial statements in accordance with IFRS. FB acquired 100% of the outstanding common stock of Skarlet,

jeka57 [31]

Answer:

See the attached file below.

Explanation:

There's not much difference between IFRS and U.S. GAAP when it comes to business acquisition.

In accordance with IFRS, FB Corp. would do the following procedure:

(1) record the acquired assets and liabilities at fair value

(2) expense any acquisition related costs such as legal fees

(3) ignore post acquisition costs when determining the values at acquisition

(4) calculate goodwill as the difference between the net assets and the acquisition price less legal fees.

7 0

2 years ago

Read 2 more answers

Lionel joined the International Council on Hotel, Restaurant and Institutional Education for career guidance. Which profession i

Savatey [412]

Answer:

Food-service management

Explanation:

The International Council On Hotel, Restaurant & Institutional Education (I-CHRIE) was founded in 1946 as a non-profit organization for schools offering programs in hotel and restaurant management, food service management and culinary arts.

Hence, Lionel haven joined the International Council on Hotel, Restaurant and Institutional Education for career guidance is aspiring for a profession in hospitality or food-service management.

7 0

2 years ago

Majka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1

Alik [6]

Answer:

See the explanation below:

Explanation:

a. Create an accounting equation and record the effects of each accounting event under the appropriate general ledger account headings.

Assets = Liabilities + Stockholders' Equity ......... (1)

Cash is a component of Asset, therefore the transaction will affect assets or cash as follows:

Asset: + $28,600, - $13,200, - $1,500

Cash balance = Asset = $28,600 - $13,200 - $1,500 = $13,900

Retained Earnings is a component of Stockholders' Equity , therefore the transaction will affect Stockholders' Equity or Stockholders' Equity as follows:

Retained Earnings; + $28,600, - $13,200, - $1,500

Retained Earnings = $28,600 - $13,200 - $1,500 = $13,900 = Stockholders' Equity

Liabilities = 0. This is because the three transactions does not affect liabilities

Substituting the values into the equation (1), we have:

$13,900 = 0 + $13,900

b. Prepare an income statement, statement of changes in stockholders' equity, and a balance sheet.

1. Income statement

Details Amount ($)

Revenues 28,600

Expenses (13,200)

Profit 15,400

Dividend (1,500)

Retained earning 13,900

2. Statement of changes in stockholders' equity

Details Amount ($)

Common stock 0

Retained b/f 0

Retained earning for the year 13,900

Stockholders' equity 13,900

3. Balance sheet.

Details Amount ($)

Assets

Cash 13,900

Other assets 0

13,900

Stockholders' equity

Common stock 0

Retained earning 13,900

13,900

c. Explain why the income statement uses different terminology to date the income statement than is used to date the balance sheet.

The reason is the income statement shows the performance of a company during a particular period, while the balance sheet shows the assets and liabilities of the company at a specific point in time.

7 0

2 years ago

Andrew has been asked to estimate future cash flows for his company. He is having a hard time remembering how to estimate future

Sonja [21]

Answer: Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

Explanation:

From the question, we are informed that Andrew has been asked to estimate future cash flows for his company and that he is having a hard time remembering how to estimate future cash flows from his accounting classes.

Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

7 0

2 years ago

Douglas Diners Inc. charges an initial franchise fee of $90,000 broken down as follows:

Bas_tet [7]

Answer:

b. a credit to Service Revenue for $11,500.

c. a credit to Sales Revenue for $38,500.

Explanation:

The customer pays 40,000 then we solve for the present value of the future payments

30,000 / 1.08 + 30,000/1.08^2 = $ 53,497.94

Is is the amount net of interest that the company is charging the franchisee

The entry would be as follows

Cash 40,000 debit

account receivables 53,497.94 debit

Sales Revenue 38,500 credit

Service Revenue 11,500 credit

Franchise Fee* 53,497.94 credit

As the fanchisee will not recieve further support from the franchisor It is already earned If the franchisee will receive support over the two year period then This would be unearned as the Franchisor has to provide assistance over the years to earned.

4 0

2 years ago