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2 years ago

If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be:_________

1 answer:

4 0

If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be one asset increases $1,600 and another asset decreases $1,600, causing no effect.

<h3>What is an accounting equation?</h3>

The relationship between a person's or company's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone. The sum of the debits and credits for each transaction is equal.

Stockholders' equity is referred to as capital in corporations. Since every business transaction impacts at least two accounts, the accounting equation will always be "in balance," which means the left and right sides of a company's balance sheet should always be equal.

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On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and fr

yan [13]

Answer:

1.Contract is express

2.Contract executory

Please explanation below.

Explanation:

1)Contract is Expressed

Expressed contract consist of agreement in which terms are stated by parties either orally or in written .

2) The contract is executory

Since contract is performed only by Santonio and since Ramona will make payment on 1 june ,on 31 may it is still to be performed by ramona so the contract is executory (only part performance is made) .An executory contract is a contract that has not yet been fully performed or fully executed. It is a contract in which both sides still have important performance remaining.

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3 years ago

Cannon Co. has a unit selling price of $500, variable cost per unit $300, and fixed costs of $240,000. Compute the break-even po

Furkat [3]

Answer:

Break-even point= 1,200 units

Break-even point (dollars)= $600,000

Explanation:

Giving the following information:

Cannon Co. has a unit selling price of $500, variable cost per unit $300, and fixed costs of $240,000.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 240,000/ (500 - 300)

Break-even point= 1,200 units

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 240,000/ (200/500)

Break-even point (dollars)= $600,000

8 0

3 years ago

A company issues 5%, 12-year bonds with a face amount of $70,000 for $64,070 on January 1, 2021. The market interest rate for bo

KIM [24]

Answer:

Date Particular Debit Credit

Jan 1, 2021 Cash $64,700

Discount on bond payable $5,930

Bond payable $70,000

Jun 30,2021 Interest expense $3,882

Discount on bonds payable $2,132

Cash $1,750

Workings:

Semi annual interest payment = 70,000 x 5% x 6/12

= $1,750

Interest expense on June 30, 2021 = Carrying value of bonds x Market interest rate

= 64,700 x 6%

= $3,882

Discount on bonds payable amortized on June 30, 2021 = Interest expense - Interest payment

= 3,882 - 1,750

= $2,132

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3 years ago

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koban [17]

Answer:

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Explanation:

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3 years ago

Which of the following would be considered the highest risk portfolio?

NemiM [27]

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3 years ago