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1 year ago

The accounts payable account is a/an _, and it has a normal _ balance.

1 answer:

3 0

In finance and accounting, accounts payable can operate as either a credit or a debit. Because accounts payable is a penalty account, it should have a credit balance.

<h3>Are accounts owed a debit or credit in normal balance?</h3>

Accounts payable (A/P) is a type of penalty account, so it stays on the credit side of the trial balance as the normal balance. It is the amount that we owe to suppliers for the interests or services that we have already acquired but have not paid yet.

Accounts payable (AP) is a short-term debt and a liability on a balance sheet where a corporation owes money to its vendors/suppliers that have provided the business with goods or services on credit.

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3 years ago

accounts receivable had a debit balance of $10,000 at the beginning of the period, and a debit balance of $6,000 at the end of t

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If accounts receivable had a debit balance of $10,000 at the beginning of the period, and a debit balance of $6,000 at the end of the period. based on this information, the adjustment to net income for the period will be reported as: a decrease of $4,000 which will be added to net income.

<h3>How to find the adjustment to net income?</h3>

Using this formula to determine the adjustment to net income

Adjustment to net income = accounts receivable had a debit balance - Beginning debit balance

Where:

Accounts receivable had a debit balance = $10,000

Beginning debt balance = $6,000

Let plug in the formula

Adjustment to net income = $10,000 - $6,000

Adjustment to net income = $4,000

Therefore we can conclude that the adjustment to net income for the period will be reported as a decrease of $4,000 which will be added to net income.

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9 months ago

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.10; direct

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Answer:

$0 cost or savings per unit

Explanation:

Cost to Buy

Purchase Price $31.40

and,

Costs to Make

Direct materials $9.10

Direct labor $13.10

Variable overhead $2.10

Fixed Overheads $7.10

Total $31.40

therefore

The net incremental cost or savings of buying the component is $0 cost or savings per unit

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2 years ago

When a classified balance sheet is prepared, merchandise inventory is:

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Answer:

The correct answer is (C) Reported as a current asset.

Explanation:

The current asset, also called a current or liquid asset, is the asset of a company that can become liquid (become money) in less than twelve months. For example, bank money, stocks, and financial investments.

We can also understand the current asset as all those resources that are necessary to carry out the day-to-day activities of the company. It is known as current because it is a type of asset that is in continuous movement, can be sold, used, converted into liquid money or delivered as payment without too much difficulty.

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2 years ago

Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair

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Given :

Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.

To Find :

What is Bud's recognized gain or loss.

Solution :

This is a transaction of like kind exchange.

So, gain or loss to be recognized is :

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Therefore, option B) is correct.

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2 years ago

The accounts payable account is a/an _______, and it has a normal _______ balance.

The accounts payable account is a/an _, and it has a normal _ balance.