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3 years ago

3. What is the balance sheet equation?

Business

2 answers:

larisa86 [58]3 years ago

6 0

Answer:

It is the sum of the owner's capital and company's total liabilities is equal to the company's total assets at a particular point of the time.

Zielflug [23.3K]3 years ago

6 0

Answer:

Definition:The balance sheet equation or accounting equation is the most basic, fundamental part of accounting. The balance sheet equation forms the building blocks for the entire double entry accounting system.

The balance sheet is based on the fundamental equation:

<u>Asset = Liabilities + Equity.</u>

It helps the company to prepare a balance sheet and see if the entire enterprise's asset is equal to its liabilities and stockholder equity.

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Jonathan wants to start a business that relies entirely on the buyer’s demand. In which economic system is best suited for his b

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Answer:

ITS NOT B

Explanation:

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4 years ago

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On January 15, the end of the first pay period of the year, North Company’s employees earned $26,000 of sales salaries. Withhold

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Answer: Please see the explanation column

Explanation:

Journal entry to record North Company’s salaries expense and related liabilities.

Date Particulars Debit Credit

Jan, 15 Sales salaries expense $26,000

To FICA Social Security taxes

payable at 6.2% $1,612

To FICA Medicare taxes

payable at 1.45% $377

To federal income taxes payable $2,000

To employee medical insurance payable $429

To employee union dues payable $180

Sales Salaries Payable $21.402

Working :

FICA Social Security taxes = 6.2% x $26,000 = $1,612

FICA Medicare taxes = 1.45% x 26,000 = $377

Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable +employee union dues payable ) = 26,000 - (1612+377+2000+429+180)=$21,402.

6 0

3 years ago

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been

tekilochka [14]

Answer:

The company paid $278,031

Explanation:

Giving the following information:

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%.

<u>To calculate the past value of the land, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= present value (20 years ago)

n= 20

FV= 575,000

i= 0.037

PV= 575,000 / (1.037^20)

PV= $278,031

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3 years ago

Analyze the various methods available for avoiding overdrafts. Based on how you might use you account most often, decide which w

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3 years ago

One of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage v

kaheart [24]

Answer:

Method b

Explanation:

Present worth can be calculated using a financial calculator

For method A ,

Cash flow in year 0 = $80,000

Cash flow in year 1 and 2 = $30,000

Cash flow in year 3 = $30,000 - $15,000 = $15,000

I = 12%

Present worth = $141,378.23

For method B,

Cash flow in year 0 = $120,000

Cash flow in year 1 and 2 = $8, 000

Cash flow in year 3 = $8,000 - $40,000 = $-32,000

I = 12%

Present worth = $110,743.44

Method b would is chosen because it worth less.

To find the present worth using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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4 years ago

3. What is the balance sheet equation?​

3. What is the balance sheet equation?