Explain the drilling operation
Warren and Spencer are partners in a drilling operation.Warren purchased a drilling rig to be used in the partnerships operation.Is this purchase binding on Spencer even though he was involved in it?Expain your answer.
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California Co. issued 200 bonds at a stated rate of 6% interest, with a principal amount of $1,000. The bonds are dated January 1, 2012, and are issued on that date. The bond pays interest semiannually. The bond will mature in five years.
The Landers Corporation needs to raise $1.60 million of debt on a 20-year issue. If it places the bonds privately, the interest rate will be 10 percent.
Marvin%u2019s Music Company was incorporated as a new business on January 1, 2012. The company is authorized to issue 40,000 shares of $1 par value common stock.
The standards for direct labor for a product are 6 hours at $5 per hour. Last month, 9,300 units of the product were made and the labor efficiency variance was $8,300
The general ledger of the Karlin Company, a consulting company, at January 1, 2011, contained the following account balances: The following is a summary of the transactions for the year.
The building and equipment are estimated to cost $1,200,000, and both the building and equipment will be depreciated over 10 years using the straight-line method.
Travis Fortney, and architect, opened an office on April 1, 2010. During the month, he completed the following transactions connected with his professional practice.
During February, Winter Companys employees earned wages of $50,000. Social security (FICA) withheld was $2,500; federal income taxes withheld were $3,500;
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