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2 years ago

The owner of a business invested $5,000 in the business. what are the effects on the fundamental accounting equation?

1 answer:

5 0

The owner of a business invested $5,000 in the business. Total assets and liabilities increase on the fundamental accounting equation.

<h3>What are assets ?</h3>

Financial accounting classifies as an asset any resource that a business or other economic organization owns or manages. Anything that has the potential to provide positive economic value qualifies. The ownership value that can be turned into cash is represented by assets.

<h3>What are liability ?</h3>

A liability is defined in financial accounting as the future economic advantages that an entity must forgo for other entities as a result of previous transactions or other previous events.

<h3>Difference between asset and liability </h3>

Any possessions that could possibly result in future financial gain are considered a company's assets. Your debts to other people are called liabilities.

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You are a single person with no dependents, earning a salary of $47,810. You have no adjustments to your income. Use the informa

vitfil [10]

The taxable income for that person is $47,810 and the tax liability can be found by multiplying the taxable income by the tax rate. The person does not have any adjustment to his/her salary, therefore all of his salary amounts becomes the taxable income. The tax liability can be found by multiplying the $47,810 with a specific tax rate.

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4 years ago

Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 909

ElenaW [278]

Answer:

Equivalent units of production= 98,700

Explanation:

Giving the following information:

Physical Units Work in process, beginning 0

Completed and transferred out 90,900

Work in process, ending 7,800

Materials are added at the beginning of the process.

<u>To calculate the equivalent units, we need to use the following formula:</u>

<u></u>

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 0 + 90,900 + 7,800*1

Equivalent units of production= 98,700

Because the materials are added at the beginning of the process, the percentage of completion is 100%.

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3 years ago

Mace Auto Parts Company sells to retail auto supply stores on credit terms of "net 60". Annual credit sales are $300 million (sp

Artist 52 [7]

Answer:

Mace's average collection period is 88 days

Explanation:

Credit terms is "Net 60" which means the customer will naturally pay within 60 days. Further it is given that account average 28 days overdue. This means it takes 28 more days to collect the amount of receivables. Therefore the average collection period comes to

60 + 28 = 88 days.

8 0

3 years ago

A travel agent wants to determine how much the average client is willing to pay for a weekend at an all-expense paid resort. The

-Dominant- [34]

Answer:

$n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121$

So the answer for this case would be n=12 rounded up to the next integer

Explanation:

$\bar X=2500$ represent the sample mean

$\mu$ population mean (variable of interest)

s=840 represent the sample standard deviation

n represent the sample size

The margin of error is given by this formula:

$ME=z_{\alpha/2}\frac{\sigma}{\sqrt{n}}$ (a)

And on this case we have that ME =150 and we are interested in order to find the value of n, if we solve n from equation (a) we got:

$n=(\frac{z_{\alpha/2} \sigma}{ME})^2$ (b)

The critical value for 95% of confidence interval, the significance level if 5% and the critical value would be $z_{\alpha/2}=1.960$ , replacing into formula (b) we got:

$n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121$

So the answer for this case would be n=12 rounded up to the next integer

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3 years ago

In the current year, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of

Sergeu [11.5K]

Answer:

The answer is: D) Crimson’s dividends received deduction is $21,000

Explanation:

The dividends received deduction (DRD) allows a company that earns dividends from another company, to deduct those earnings (dividends) from its income tax.

The three tiers of possible deductions are:

If the company owns ≤20% of the second company, it can deduct 70% of the dividends received.
If the company owns ˃20% but ≤80% of the second company, it can deduct 80% of the dividends received.
If the company owns ˃80% of the second company, it can deduct 100% of the dividends received.

Since Crimson owned 15% of the second company, then it can deduct 70% of the dividends it received, which equals $21,000 ($30,000 x 70%).

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3 years ago