All categories

1 year ago

If a company receives $12,000 from a stockholder, the effect on the accounting equation would be?

1 answer:

3 0

If a company receives $12000 from a stockholder the effect on the accounting equation would be that assets increase by $12000 and equity also increase by $12000.

Given that a stockholder pays $12000 to the company.

We are required to find the effect of the payment by the stockholder to the company in accounting equation.

Accounting equation is basically an equation which tells that assets is equal to the sum of liabilities and capital.

Assets=Liabilities+Capital

When company receives some payment from the stockholder then the cash or bank increases and accordingly assets increases and equity also increases.

Hence if a company receives $12000 from a stockholder the effect on the accounting equation would be that assets increase by $12000 and equity also increase by $12000.

Learn more about accounting equation at brainly.com/question/24401217

#SPJ4

You might be interested in

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was

tatiyna

Answer:

The correct answer is Double-declining-balance. The highest net income in year 2 is 6000.

This higher net income don´t mean the machine was used more efficiently under this depreciation method.

Explanation:

In the file attached you will find a depreciation schedule for each of the alternative methods.

Each method need different calculus.

Straight-line

depreciation expense=(Original Value -Residual Value)/Useful life=

depreciation expense=4400

Units-of-production

estimated productive life 10000

Units of Production Rate=(Original Value -Residual Value)/estimated productive life=2,2

Double-declining-balance.

Depreciation rate = 1/useful life *100= 20,00%

Download xlsx

4 0

3 years ago

Does Caroline have any closed accounts? How long does a closed account stay on a persons credit report?

Elden [556K]

It stays on for seven years.

3 0

2 years ago

Read 2 more answers

Eaton Electronics uses a periodic inventory system.

aev [14]

The cost of ending inventory of Eaton Electronics on June 30 is $13,600.

<h3>What is the LIFO method?</h3>

The LIFO method values the cost of goods sold based on the assumption that goods sold are from the latest stock.

For example, using LIFO, Easton would have the two TVs sold based on the cost of the May Purchases instead of specific identification.

<h3>Data and Calculations:</h3>

Beginning inventory (2 x $1,500) = $3,000

April Purchases (4 x $1,450) = $5,800

May Purchases (5 x $1,600)= $8,000

Cost of goods available for sale = $16,800

Cost of goods sold (2 x $1,600) = $3,200

Ending inventory = $13,600 ($16,800 - $3,200)

Thus, the cost of ending inventory is $13,600.

Learn more about the LIFO method at brainly.com/question/10026597

#SPJ1

6 0

2 years ago

A business that incorporates must file a document with the state, which includes a description of the business activities, the s

Sindrei [870]

Articles of incorporation , corporate charter are used to describe this document.

<h3><u>Explanation:</u></h3>

The document that is very formal in nature and also filled with information related to the creation of the company refers to the Articles of incorporation. It contains the details related to the name and address of the company, the type and the amount of stock that is to be issued, agent for service of process.

The document that contains the information related to the secretary of state during the time in which the business is incorporated refers to the corporate charter. This can also be referred as certificate of incorporation. The details in this documents may differ that depends on the size and the regulations of the company.

6 0

3 years ago

Turkey Hill Motor Homes currently sells 1,200 Class A motor homes, 2,600 Class C motor homes, and 4,000 pop-up trailers each yea

Colt1911 [192]

Answer:

The erosion cost = $ 49,190,000

Explanation:

Given:

Class A motor homes sold = 1,200

Class C motor homes sold = 2,600

pop-up trailers sold = 4,000

if the new camper is added,

decline in class A sales = 10%

Decline in class C sales = 2,100 units

Average cost of class A motor homes = $ 162,000

Average cost of class C homes = $ 59,500

Selling price for the pop-ups = $ 5,500

cost of the new mid-range camper = $ 32,900

Now,

Erosion cost is given as = Total decline in revenue from the sales

= (Decline in class A sales × Average cost of class A motor homes ) + (Decline in class C sales × Average cost of class C motor homes )

Erosion cost = ( 0.10 × 1,200 × $ 162,000 ) + ( (2,600 - 2,100) × $ 59,500 )

Erosion cost = 19,440,000 + 29,750,000

The erosion cost = $ 49,190,000

3 0

3 years ago