After all closing entries have been entered and posted, the balance of the Income Summary account will be zero
Indicate whether the statement is true or false
True
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Rollins and Associates develops hotels in resort locations. The company is exploring the construction of a new facility that would have significant meeting and banquet space for conventions and conferences, and sleeping rooms that average 850 square feet. The accounting department estimates that land and building costs will amount to $60 and $120 per square foot of floor area, respectively. Other expenditures during construction for interest, real estate taxes, and general overhead are expected to total 35% of land and construction cost. Once basic construction is completed, Rollins anticipates per-room initial expenditures for:Sleeping room furnishings and accessories$16,000Supplies1,900Marketing5,500The accounting department suggests that 10% be added to the total of all preceding
costs to allow for estimation errors. Construction is anticipated to take two years.Rollins' pricing policy is consistent with that of industry leaders, namely, to set a room rate equal to .1% (.001) of cost. Upon completion, comparable facilities are expected to charge $240 per day.Required:A. Compute the total cost of a sleeping room at the new facility.B. Is the company's room rate competitive? Briefly explain.C. Rollins desires to enter this market by adhering to the industry standard and charging a competitive room rate. If needed, the firm will look for ways to cut expenditures. Briefly explain the difference between cost-plus pricing and target costing.D. Other than operating costs and room revenues, what else should Rollins consider before a final decision is made about the facility? What will be an ideal response?
The GATT dispute panel found that Thailand's regulations on the importation of cigarettes was justified
Indicate whether the statement is true or false
If a registration statement contains a material misstatement or omission A)the company is liable and has no defense
B)anyone other than the company who signed the statement is liable and has no defense. C)all experts are liable and have no defense. D)the company is liable unless it can show due diligence.
Prepare dated journal entries for Ocean Enterprises for 2017 to account for its investment in Zebrafish and any related income therefrom.
Ocean Enterprises Inc. acquired 15% of the 100,000 outstanding common shares of Zebrafish Ltd. on January 1, 2017 for a cash consideration of $150,000 and a further 10% of the company's common shares a year later for $110,000. On July 1, 2018, Ocean Enterprises sold half their holding in Zebrafish for proceeds of $150,000. Zebrafish earned income of $150,000 in 2017 and $180,000 in 2018 (evenly over both years) and paid a regular semi-annual dividend of $60,000 in June and December each year. Ocean Enterprises does not have significant influence over Zebrafish and elected when it first acquired its initial investment in Zebrafish to account for this investment through other comprehensive income. The company's shares were trading for $11 at the end of 2017 and $12.50 at the end of 2018.