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2 years ago

When an employer hires an employee to enter into contracts on behalf of the employer, a ______ relationship typically exists.

1 answer:

6 0

When an employer hires an employee to enter into contracts on behalf of the employer, an <u>agency relationship</u> typically exists.

An agency relationship exists between an employer and the employee, when the former authorizes the latter to act on his behalf, including to enter into contracts and agreements.

The employer is called the principal, and the employee is called the agent. These arrangements are made with the consent of both parties, and the principal is bound by what his agent does.

Agency relationships are essential for firms that do business globally. This is because the principal, through the agent, is able to be in more than one place at a time, thereby expanding the scope of their business.

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The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31 2017, the end of its f

ankoles [38]

Answer:

1. Prepare the December 31, 2017, closing entries for Cruz Company.

Dr. Cr.

404 Services revenue 44,100

Income Summary 44,100

Income Summary 33,972

612 Depreciation expense—Equipment 2,000

622 Salaries expense 25,710

637 Insurance expense 1,852

640 Rent expense 2,955

652 Supplies expense 1,455

2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company.

Dr. Cr.

101 Cash 18,000

126 Supplies 14,500

128 Prepaid insurance 2,000

167 Equipment 23,000

168 Accumulated depreciation—Equipment 6,500

307 Common stock 13,272

318 Retained earnings 33,600

319 Dividends 6,000

404 Services revenue 44,100

612 Depreciation expense—Equipment 2,000

622 Salaries expense 25,710

637 Insurance expense 1,852

640 Rent expense 2,955

652 Supplies expense <u> 1,455 </u> <u> </u>

Totals 97,472 97,472

Explanation:

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3 years ago

Brahma Supply Company uses a periodic inventory system. During September, the following transactions and events occurred.

Temka [501]

Answer:

Date Account titles & Explanation Debit Credit

Sep 04 Purchases (70 backpacks*$50) $3,500

Accounts payable $3,500

Sep 06 Accounts payable $300

Purchase return and allowances $300

Sept 09 Accounts receivable $1,260

(15 backpacks*$84)

Sales $1,260

Sept 13 Accounts payable $3,200

(64 backpacks*$50)

Purchase discount (3,200*2%) $64

Cash (3,200*98%) $3,136

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3 years ago

Dwight Donovan, the president of Rundle Enterprises, is considering two investment opportunities. Because of limited resources,

blsea [12.9K]

Based on the cashflows of Projects A and B, and the rate of return, the project that Rundle Enterprises should be pick is Project A.

<h3>Why should Rundle Enterprises pick Project A?</h3>

The project that should be picked is the project with the higher net present value.

The net present value of Project A can be found as:

= Present value of cash flows - Initial cash expenditure

= (36,113 x present value interest factor for an annuity, 8%, 5 years) - 108,000

= 36,113 x 3.99271 - 108,000

= $36,188.74

The net present value of B is therefore:

= 9,612 x 3.99271 - 33,000

= $5,377.93

Project A has the higher present value and should be selected.

Find out more on net present value at brainly.com/question/18848923

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2 years ago

Why do some salespeople try to start a new interaction by asking for something small from a potential customer (e.g., "just answ

Talja [164]

Some salesperson do try to start a new interaction by asking for something small from a potential customer because they know getting small acts of cooperation may lead to larger actions. The answer in this question is simply because they know getting small acts of cooperation may lead to larger actions.

4 0

3 years ago

Which of the following journal entries is recorded correctly and in the standard format?

Zanzabum

Answer:

D. Salaries and Wages Expense 530

Advertising Expense 910

Cash 1440

Explanation:

Salaries and wages expense, and advertising expense, are expenses, therefore, when they increase, they are debited.

Cash is an asset account, when it decreases, as in this case, it is debited.

The entry would be:

Account Debit Credit

Salaries and Wages Expense 530

Advertising expense 910

Cash 1440

3 0

3 years ago