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Llana [10]
1 year ago
12

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity. 1. Buy $15,000 worth of

manufacturing supplies on credit 2. Purchase equipment for $48,000 in cash 3. Receive payment of $13,000 owed by a customer 4. Issue $70,000 in stock 5. Borrow $65,000 from a bank 6. Pay $5,000 owed to a supplier 7. Purchase equipment for $42,000 in cash What is the net change in Total Liabilities
Business
2 answers:
Svetlanka [38]1 year ago
8 0

The Net change in Total Liabilities is $75,000.

<h3>Net change in Total Liabilities</h3>

1. Buy $15,000 worth of manufacturing supplies on credit

  • Assets increase by $15,000
  • Liabilities increase by $15,000
  • No effect on equity

2. Purchase equipment for $48,000 in cash

  • No effect on asset
  • No effect on liability
  • No effect on equity  

3. Receive payment of $13,000 owed by a customer

  • No effect on asset
  • No effect on liability
  • No effect on equity

4. Issue $70,000 in stock

  • Assets increase by $70,000
  • No effect on liability
  • Equity increases by $70,000

5.  Borrow $65,000 from a bank

  • Assets increase by $65,000
  • Liabilities increase by $65,000
  • No effect on equity  

6. Pay $5,000 owed to a supplier

  • Assets decrease by $5,000
  • Liabilities decrease by $5,000
  • No effect on equity

6. Purchase equipment for $42,000 in cash

  • No effect on asset
  • No effect on liability
  • No effect on equity  

Net change in Liabilities:

Net change in liabilities =$15,000 +$65,000 -$5,000

Net change in liabilities= $75,000

Therefore the Net change in Total Liabilities is $75,000.

Learn more about Net change in Total Liabilities here:brainly.com/question/23980009

#SPJ1

arlik [135]1 year ago
3 0

1. An evaluation of the following transactions' effect on assets, liabilities, and equity is as follows:

                         Assets      =       Liabilities       +      Equity

  1.               +$15,000           +$15,000         +      $0
  2.                $0
  3.                $0
  4.              +$70,000           +$0                  +       $70,000
  5.              +$65,000           +$65,000
  6.               -$5,000                -$5,000
  7.               $0
  8. Total      $145,000    =       $75,000       +       $70,000

2. The net change in total liabilities is $75,000 (a reduction of $5,000).

<h3>Transaction Analysis:</h3>
  1. Raw Materials Inventory $15,000 Accounts Payable $15,000
  2. Equipment $48,000 Cash $48,000
  3. Cash $13,000 Accounts Receivable $13,000
  4. Cash $70,000 Common stock $70,000
  5. Cash $65,000 Bank Payable $65,000
  6. Accounts Payable $5,000 Cash $5,000
  7. Equipment $42,000 Cash $42,000

<h3>Total Liabilities:</h3>

Accounts Payable $15,000

Bank Payable $65,000

Accounts Payable ($5,000)

Net change =  $75,000

Thus, the evaluation shows that with each transaction, the assets are always equal to liabilities and equity.

Learn more about the balance sheet (accounting) equation at brainly.com/question/24401217

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Answer:

So after 5 year total amount will be $1781.529

So option (a) is correct option

Explanation:

We have given that JG Asset is recommending that you invest $1500 for 5 years at rate of 3.5%

So principle amount P = $1500

Rate of interest r = 3.5 %

Time n = 5 years

We know that when total amount is given by

A=P(1+\frac{5.5}{100})^n, here r is rate of interest and n is time period

So amount after 5 years will be

A=1500(1+\frac{3.5}{100})^5=$1781.52

So after 5 year total amount will be $1781.529

So option (a) is correct option

5 0
3 years ago
If a company increases its sales price per unit for product​ a
Effectus [21]

Answer:

TR decreases if Demand is Elastic, TR increases if Demand is Inelastic

Explanation:

Price Elasticity of Demand is the responsive change in price, due to change in price. Elastic demand means demand responds more to price change, Inelastic demand means demand responds less to price change. Total Revenue is the total receipt value from sales = Price x Quantity

  • If demand is elastic : price & total revenue are inversely related - price increase, demand decrease & price decrease, demand increase.
  • If demand is inelastic : price & total revenue are directly related - price increase, demand increase & price decrease, demand increase

So, If a company increases its sale price per unit of a product :

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3 years ago
Forever Jewelers uses the perpetual inventory system. On April​ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500
Tema [17]

Answer:

Accounts Receivable $8,820

                   To Sales Revenue $8,820

Explanation:

The journal entry to record the sales revenue is shown below:

Accounts receivable A/c Dr $8,820

      To Sales revenue A/c $8,820

(Being merchandise sold on credit basis)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

The computation of sales revenue is shown below:

= Sales revenue - discount

= $9,000 - $9,000 × 2%

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= $8,820

This is the answer but the same is not provided in the given options

6 0
2 years ago
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JulsSmile [24]
$9.78 happy to help (:
6 0
3 years ago
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Luthan Company uses a predetermined overhead rate of $22.60 per direct labor-hour. This predetermined rate was based on a cost f
Anit [1.1K]

Answer:

$248,600

Explanation:

The computation of amount of manufacturing overhead is shown below:-

Amount of manufacturing overhead would have been applied = Predetermined overhead rate × Actual direct labor-hours

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= $248,600

Therefore for computing the amount of manufacturing overhead we simply multiply the Predetermined overhead rate with Actual direct labor-hours

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