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mr Goodwill [35]
3 years ago
8

The two main sources of stockholders' equity are a.net income retained in the business and dividends paid b.investments by stock

holders and dividends paid c.investments by stockholders and net income retained in the business d.investments by stockholders and purchases of assets
Business
1 answer:
Lady_Fox [76]3 years ago
7 0

Answer:C - investments by stockholders and net income retained in the business

Explanation: Stakeholders equity are the investments made by investors into the business plus any profit retained by the business.

Stakeholders equity can also be said to be the gross profit less all liabilities for a specified period. This also includes assets that the company owns.

It does not include dividend issued for the period as dividend is also a liability to the company.

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Accrued sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandi
Korolek [52]

Answer:

The answers are given below;

Explanation:

a. Adjusting Entries

  Salaries Expense   Dr.$1,700

   Salaries Payable   Cr.$1,700

 Selling Expenses               Dr.$3,000

 Prepaid Selling Expenses Cr.$3,000

Inventory                    Dr.$28,700  

Cost of Goods Sold   Cr.$28,700

b.    Income summary Account (1,700+3,000+28,700)      Dr.$33,400

       Salaries Expense      Cr.$1,700

       Selling Expense        Cr.$3,000

       Cost of Goods Sold  Cr.$28,700

Capital    Dr.$33,400

Income Summary Account   Cr.$33,400

 

4 0
3 years ago
Read 2 more answers
The following transactions apply to Jova Company for Year 1, the first year of operation:
aleksandr82 [10.1K]

Answer:

<u>Year 1: </u>

a. Issued $17,000 of common stock for cash.  ⇒ ASSET SOURCE

Dr Cash 17,000

    Cr Common stock 17,000

b. Recognized $63,000 of service revenue earned on account.  ⇒ ASSET SOURCE

Dr Accounts receivable 63,000

    Cr Service revenue 63,000

c. Collected $56,400 from accounts receivable.   ⇒ ASSET EXCHANGE

Dr Cash 56,400

    Cr Accounts receivable 56,400

d. Paid operating expenses of $36,600.   ⇒ ASSET USE

Dr Operating expense 36,600

    Cr Cash 36,600

e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. ⇒ ASSET USE  

Dr Bad debt expense 132

    Cr Allowance for doubtful accounts 132

<u>Year 2:</u>

a. Recognized $70,500 of service revenue on account.   ⇒ ASSET SOURCE

Dr Accounts receivable 70,500

    Cr Service revenue 70,500

b. Collected $64,400 from accounts receivable.  ⇒ ASSET EXCHANGE

Dr Cash 64,400

    Cr Accounts receivable 64,400

c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.  ⇒ ASSET EXCHANGE

Dr Bad debt expense 860

    Cr Accounts receivable 860

d. Collected $300 of an account that had previously been written off.  ⇒ ASSET EXCHANGE

Dr Accounts receivable 300

    Cr Bad debt expense 300

Dr Cash 300

    Cr Accounts receivable 300

e. Paid $48,100 cash for operating expenses.  ⇒ ASSET USE

Dr Operating expense 48,100

    Cr Cash 48,100

f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.  ⇒ ASSET USE

Dr Bad debt expense 117

    Cr Allowance for doubtful accounts 117

<u>trial balance year 1</u>

Dr Cash 36,800

Dr Accounts receivable 6,468

Cr Common stock 17,000

Cr Service revenue 63,000

Dr Operating expense 36,600

Dr Bad debt expense 132

Income Statement

<u>Year 1</u>

Service revenue                                       $63,000

Expenses:

  • Operating expense $36,600
  • Bad debt expense $132                 <u>($36,732)</u>

Net income                                                $26,268

Balance Sheet

<u>Year 1</u>

Assets:

Cash $36,800

Accounts receivable $6,468

Total Assets $43,268

Equity:

Cr Common stock 17,000

Retained earnings $26,268

Total equity $43,268

Statement of changes in stockholders' equity

<u>Year 1</u>

Beginning balance                       $0

Common stock issued               $17,000

Net income                              <u>  $26,268</u>

Ending balance                          $43,268

<u>trial balance year 2</u>

Dr Cash 16,600

Dr Accounts receivable 5,123

Cr Service revenue 70,500

Dr Operating expense 48,100

Dr Bad debt expense 677

Income Statement

<u>Year 2</u>

Service revenue                                       $70,500

Expenses:

  • Operating expense $48,100
  • Bad debt expense $677                 <u>($48,777)</u>

Net income                                                $21,723

Statement of changes in stockholders' equity

Beginning balance:

Common stock issued               $17,000

Retained earnings                     $26,268

Net income                               <u>  $21,723</u>

Ending balance                          $64,991

Balance Sheet

<u>Year 2</u>

Assets:

Cash $53,400

Accounts receivable $11,591

Total Assets $64,991

Equity:

Cr Common stock 17,000

Retained earnings $47,991

Total equity $64,991

Statement of cash flows

<u>Year 2</u>

Net income                                           $21,723

Adjustments to net income:

Increase in accounts receivable         <u>($5,123)</u>

Net cash from operating activities     $16,600

Net cash increase                               $16,600

Beginning cash balance                    <u>$36,800</u>

Ending cash balance                         $53,400  

3 0
3 years ago
Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market
Salsk061 [2.6K]

Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

8 0
3 years ago
Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the following sales-related informa
dezoksy [38]

Answer:

Net sales revenue= 220,100

Explanation:

Giving the following information:

Sales, gross $ 245,000

Sales returns and allowances $ 20,000

Sales discounts 4,900

Sales salaries expense 10,900

<u>Sales salaries expense is not a part of the net sales in a multiple-step income statement. The net sales are as follow:</u>

Sales= 245,000

Sales returns and allowances=  (20,000)

Sales discounts= (4,900)

Net sales revenue= 220,100

4 0
3 years ago
An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical produ
Diano4ka-milaya [45]

Answer:

Difficult entry, Mutual interdependence, Market is control by a few large firms.

Explanation:

An Oligopolistic market very few organisations control a particular market share. Likewise, when another organisation attempts to enter the market, there are obstructions set up by the current organisations. Similarly, if one organisation changes or alter a commodity, it affects all other firms and organisations. So there is mutual interdependence in the oligopolistic market. There is high mutual interdependence because firms produce identical or the same goods and services.

6 0
3 years ago
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