Describe the requirements for establishing a suretyship relationship.
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Describe the requirements for establishing a suretyship relationship.
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- Packed Corporation owns 60 percent of Snowball Enterprises’ stock. On January 1, 20X1, Packed sold $1.18 million par value, 6 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97. On January 1, 20X8, Snowball purchased $354,000 par value of the Packed bonds directly from Kling for $351,980. Required: Prepare the consolidation entry needed at December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollarA mortgage is transfer of an interest in specific immoveable property for the purpose ofsecuring payment of some amount of money. Elaborate in what different ways amortgage is created by highlighting their characteristics and mutual rights and liabilitiesof the parties in a precise manner?Explain the requisites of an obligation and a contract
- Albert, Betty, and Carol own and operate the Roy Lumber Company, a limited liability partnership (LLP). Each contributed one-third of the capital, and they share equally in the profits and losses. Their LLP agreement provides that all purchases exceeding $2,500 must be authorized in advance by two partners and that only Albert is authorized to draw checks. Unknown to Albert or Carol, Betty purchases on the firm’s account a $5,500 diamond bracelet and a $5,000 forklift and orders $5,000 worth of logs, all from Doug, who operates a jewelry store and is engaged in various activities connected with the lumber business. Before Betty made these purchases, Albert told Doug that Betty is not the log buyer. Albert refuses to pay Doug for Betty’s purchases. Doug calls at the mill to collect, and Albert again refuses to pay him. Doug calls Albert an unprintable name, and Albert then punches Doug in the nose, knocking him out. While Doug is lying unconscious on the ground, an employee of Roy…Explain Subcontracting?A limited partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.;True or False
- 1.An entity shall offset an asset relating to one plan against a liability relating to another plan when, and only when, the entity: has a legally enforceable right to use a surplus in one plan to settle obligations under the other plan intends either to settle the obligations on a net basis, or to realize the surplus in one plan and settle its obligation under the other plan simultaneously Neither. Both 1 and 2. 1 only. 2 only.Sondra and Neil Kumaraperu owned a private day-care center and preschool. The preschool maintained a checking account and an operating account, but only Neil and Ranjini Niyarapola (a former owner) were on the signature cards. after Neil’s death, Sondra discovered that the school’s director had inadvertently deposited a check for the operating account into the checking account. so she wrote a check out to herself, signed Niyarapola’s name, and deposited it into the operating account. Was the check issued?Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2, 500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed.
- create a principal and agency agreement that would be enforceable against the either the principal or the agent whichever you choose in your postCompare and contrast a cash-out combination and a management buyout.Give two (2) cases when the conditional obligation is valid although the condition depends entirely upon the will of the debtor. Explain