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Kazeer [188]
3 years ago
13

How does the payment of rent for equipment affect the accounting equation? assets increase; assets decrease assets decrease; sto

ckholders' equity decreases assets decrease; liabilities increase assets increase; stockholders' equity increase?
Business
2 answers:
djverab [1.8K]3 years ago
6 0
The answer to this question is <span>assets decrease; stockholders' equity decreases 

The journal for this transaction would be

Debit:  Rent expense       xxxxx
Credit:         Cash                                xxxx
 
 Since cash is considered an asset, it will decrease asset if it placed on credit.
 Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit     </span>
rjkz [21]3 years ago
5 0

By assets decrease; stock holders' equity decreases the payment of rent for equipment affect the accounting equation.

Further Explanation:

assets decrease:

A business diminishes a benefit account as it uses up or devours the advantage in its activities. Resources a business uses up incorporate money, supplies, debt claims and prepaid costs. For instance, if your private venture pays $100 for a service charge, you would credit money by $100 to diminish the record.  

stock holders:

Investors are individuals who hold stocks — as it were, possess shares — in a company. When you purchase stocks, it resembles purchasing some portion of the organization. The more offers you purchase, the more put you are in an organization.  

equity decreases:

A diminishing in the proprietor's value can happen when an organization loses cash during the typical course of business and proprietors need to move value into ordinary business tasks. It additionally diminishes when a proprietor pulls back cash for individual use.  

accounting equation:

The accounting equation, likewise called the accounting report condition, speaks to the connection between the advantages, liabilities, and proprietor's value of an individual or business. It is the establishment for the twofold passage accounting framework. For every exchange, the all out charges equivalent the complete credits.

Subject: business

Level: High School

Keywords: assets decrease,  stock holders, equity decreases, accounting equation.  

Related links:

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brainly.com/question/7247430

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ollegr [7]

Answer:

The answer is: C) 10% more peanut butter on the shelves

Explanation:

To determine what you need to do with your peanut butter stock, you must first determine if the quantity demanded for peanut butter will increase or decrease and at what percentage. To do this we can use the following formula:

change in peanut butter sales = income elasticity of demand x average change in income

change in peanut butter sales = -5% x -20% = 10% increase

Since you expect a 10% increase in the quantity demanded for peanut butter, you should have 10% more peanut butter in stock

7 0
2 years ago
"K has a $10,000 traditional whole life policy with a loan outstanding" of $1,000 and a 5% interest charge. At the end of the fi
lyudmila [28]

Answer:

The result of K's inaction causes an increase in the outstanding loan by $50

Explanation:

<em>Step 1: Determine the interest amount</em>

The interest amount can be determined as follows;

I=PRT

where;

I=interest amount

P=principal amount

R=annual interest rate

T=time

In our case;

I=unknown

P=$1,000

R=5%=5/100=0.05

T=1 year

replacing;

I=1,000×0.05×1=$50

<em>Step 2: Determine the total loan amount</em>

This can be expressed as;

A=P+I

where;

A=total loan amount

P=principal amount

I=interest amount

In our case;

A=unknown

P=$1,000

I=$50

replacing;

A=1,000+50=1,050

The loan amount due after a year=$1,050

The result of K's inaction causes an increase in the outstanding loan by $50

8 0
3 years ago
If budgeted beginning inventory is $9,150, budgeted ending inventory is $10,420, and budgeted cost of goods sold is $11,110, bud
vekshin1

Answer:

$12,380

Explanation:

The beginning inventory is $9,150

The budgeted ending inventory is $10,420

The cost of goods sold is $11110

Therefore the budgeted purchases can be calculated as follows

= $10,420 + $11,110-$9,150

= $21,530 - $9,150

= $12,380

Hence the budgeted purchases is $12,380

7 0
3 years ago
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic l
k0ka [10]

Answer:

The price of fertilizer must be greater than average variable cost.

Explanation:

  • Being a perfectly competitive market the prices of the fertilizers will rise. As the forms are making economic losses the prices must be greater the average variable costs.
8 0
3 years ago
Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding
nexus9112 [7]

Answer:

$7.830

Explanation:

Calculation for the cost per equivalent unit for conversion costs for the month

First step is to compute for the Unit transferred out =

Unit transferred out = 21,400+101,000-34,000

Unit transferred out = 88,400

Second step is to compute for the Equivalent unit of conversion

Equivalent unit of conversion = 88,400+(34,000*70%)

Equivalent unit of conversion = 88,400+23,800

Equivalent unit of conversion = 112,200

Last step is to compute for the Cost per equivalent unit of conversion

Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931

Cost per equivalent unit of conversion = 878,580/112,200

Cost per equivalent unit of conversion = $7.830

Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830

5 0
3 years ago
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