Caroline, Jessica, and Samantha form a partnership. Caroline contributes a building, Jessica contributes cash and Samantha will operate the business.?FMVBasisPartnership %Caroline's Building$400,000$100,00020%Jessica's Cash$400,000$400,00020%Samantha's Services$0$060%How much income must Samantha recognize?
A. $400,000.
B. $0.
C. $480,000.
D. $500,000.
Answer: C
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Based on the unadjusted trial balance for Glow Styling and the adjusting information given below, prepare the adjusting journal entries for Glow Styling. After completing the adjusting entries, prepare the trial balance for Glow Styling.Glow Styling unadjusted trial balance for the current year follows: Glow StylingTrial BalanceDecember 31Cash…………………………………………………. $ 4,200?Prepaid insurance …………………………………...1,480?Shop supplies .............................................................990?Shop equipment …………………………………….3,860?Accumulated depreciation-shop equipment ……….. ?$ 770Building……………………………………………...57,500?Accumulated
depreciation-building………………..?3,840Land ………………….55,000?Unearned rent………………………………………..?1,600Long-term notes payable…………………………….?50,000Common stock ……………………………….?40,000Retained earnings ……………………………….?9,860Rent earned ………………………………………….?2,400Fees earned ………………………………………….?23,400Wages expense ……………………………………...3,200?Utilities expense ……………………………………690?Property taxes expense …………………………….600?Interest expense ……………………………………4,350________Totals ……………………………………………….. $131,870 $131,870Additional information:a. An insurance policy examination showed $1,240 of expired insurance.b. An inventory count showed $210 of unused shop supplies still available.c. Depreciation expense on shop equipment, $350.d. Depreciation expense on the building, $2,220.e. A beautician is behind on space rental payments, and this $200 of accrued revenues was unrecorded at the time the trial balance was prepared.f. $800 of the Unearned Rent account balance was earned by year-end.g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.h. Three months' property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.i. One month's interest on the note payable, $600, has accrued but is unrecorded. Use the above information to prepare the adjusted trial balance for Glow Styling. What will be an ideal response?
Perfect Potato Chip Company makes an offer that Snack Foods Corporation would like to accept. Under the "mirror image rule", an acceptance A) may include additional terms not contained in the offer so long as they do not materially alter the agreement
B) ?may include additional terms not contained in the offer that will be-come part of the agreement if the offeror does not object within a reasonable period of time. C) must include only those terms and conditions contained in the offer. D) may contain additional terms as long as all parties agree to the additional terms.
Sentry Manufacturing paid a dividend yesterday of $5 per share (D0 = $5 ). The dividend is
expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today is $29 per share. If Sentry Manufacturing decides to issue new common stock, flotation costs will equal $2.50 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above information, the cost of retained earnings is A) 28.38%. B) 31.40%. C) 24.12%. D) 26.62%.
Cross-sectional data are usually data gathered from approximately the same period of time from a cross-sectional of a population
a. True b. False Indicate whether the statement is true or false