In which of the following independent situations has Jean made a gift?
a. Jean gives her 19-year old son $20,000 to be used by him for his college expenses.
b. Jean buys her non-dependent grandfather a new $120,000 RV for his birthday.
c. Jean sends $14,000 to Temple University to cover her nephew's tuition. The nephew does not qualify as Jean's dependent.
d. Jean contributes $10,000 to her U.S. Senator's reelection campaign.
b
RATIONALE: Providing a son with a college education (choice a.) is satisfying the obligation of support. Providing an RV for a grandfather who is not a dependent is a gift (choice b.). Paying for someone's tuition directly to the educational institution is not a gift, and dependency status is not material (choice c.). Political contributions are not treated as gifts (choice d.).
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A business maintains subsidiary accounts for each of its customers On May 15, the business sells services on account: $2,100 to customer J. Simmons; $4,000 to customer A. Jones; and $1,500 to customer J. Williams. Which journal entry is needed to record this sales transaction?
A) May 15 Accounts Receivable 7,600 Service Revenue 7,600 B) May 15 Accounts Receivable - J. Simmons 2,100 Accounts Receivable - A. Jones 4,000 Accounts Receivable - J. Williams 1,500 Service Revenue 7,600 C) May 15 Service Revenue 7,600 Accounts Receivable 7,600 D) May 15 Accounts Receivable Control 7,600 Sales Revenue 7,600 May 15 Accounts Receivable - J. Simmons 2,100 Accounts Receivable - A. Jones 4,000 Accounts Receivable - J. Williams 1,500 Accounts Receivable - Control 7,600
Which of the following is NOT a conclusion drawn from M&M's Propositions 1 and 2?
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Which of the following is NOT a price zone you need to establish for a stock between the high and low prices you forecast?
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