What are the elements necessary to create a bailment?

What will be an ideal response?


Three elements are necessary to create a bailment:
1. Bailment of personal property: Only personal property can be bailed. The property can be tangible (e.g., automobiles, jewelry, animals) or intangible (e.g., stocks, bonds, promissory notes).
2. Delivery of possession: Delivery of possession involves two elements:
a. the bailee must have exclusive control over the personal property, and
b. the bailee must knowingly accept the personal property.
Most bailments are created by physical delivery.
3. Bailment agreement: The creation of a bailment does not require any formality. A bailment may be either express or implied. Most express bailments can be either written or oral. Under the Statute of Frauds, however, a bailment agreement must be in writing if it is for more than one year. An example of an implied bailment is the finding and safeguarding of lost property.

Business

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On December 31, 20X8, Pancake Company acquired controlling ownership of Syrup Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:  PancakeSyrupConsolidated CompanyCompanyEntityCash $80,000   $30,000   $110,000  Accounts Receivable  50,000    ?    78,000  Inventory  60,000    50,000    115,000  Buildings and Equipment  200,000    140,000    365,000  Less: Accumulated Depreciation  (50,000)   (28,000)   (78,000) Investment in Syrup Stock  ?            Goodwill            15,000  Total Assets $464,000   $230,000   $605,000                  Accounts

Payable $60,000   $32,000   $82,000  Wages Payable  ?    ?    78,000  Notes Payable  100,000    60,000    160,000  Common Stock  100,000    50,000    ?  Retained Earnings  154,000    60,000    ?  Noncontrolling Interest            31,000  Total Liabilities and Equities  ?   $230,000   $605,000  During 20X8, Pancake Company provided consulting services to Syrup Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.Based on the information given, what is the amount of unpaid consulting services at December 31, 20X8, on work done by Pancake Company for Syrup Company? A. $15,000 B. $5,000 C. $0 D. $10,000

Business

Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for employees to wear that work in hazardous areas?

A. the lithium batteries that are used in each monitor B. the stainless steel, water-resistant cases in which the monitors are contained C. the chest harness used to wear the monitor D. the free training videos that are sent to each new customer E. the insurance for the company's factory

Business

A company that primarily sells an intangible product is most likely a _________ company.

What will be an ideal response?

Business

The relative proportion of variable, fixed, and mixed costs in a company is known as the company's:

A. relevant range. B. contribution margin. C. product mix. D. cost structure.

Business