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katrin2010 [14]
3 years ago
8

If the commercial mortgages on the balance sheet of this bank decline in value then the value of the bank's equity will rise.a.

Trueb. False

Business
1 answer:
oksian1 [2.3K]3 years ago
8 0

Answer: False

Explanation:

According to the Accounting equation, the debit side must equal the credit side.

The Commercial mortgages for this bank are on the debit side so if they reduce, the credit side will have to reduce as well to remain in balance.

The Equity will therefore not rise but rather decrease in value so that the two sides will be balanced.

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Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax
Eduardwww [97]

Answer:

1.

Sept - 30

DR Cash <u>$6,300</u>

CR Sales <u>$6,000</u>

CR Sales Tax <u>$300</u>

(<em>To record Cash sales and Tax Payable)</em>

<u>Working</u>

Sales Tax = 6,000 * 5%

= <em>$300</em>

2.

Oct - 15

DR Sales Tax Payable <u>$300</u>

CR Cash <u>$300</u>

(<em>To record remittance of Sales Tax to the State Government</em>)

3.

Sept - 30

DR Cost of Goods Sold  <u>$3,900</u>

CR Merchandise Inventory <u>$3,900</u>

(<em>To transfer inventory to Cost of Goods sold) </em>

4. <em>Repeat question for question 2.</em>

5. <em>Repeat question for question 1.</em>

8 0
3 years ago
Chapter 12 is meant primarily for: A. farmers B. states C. taxing districts D. municipalities
Paul [167]

Chapter 12 is meant primarily for: A. Farmers

3 0
3 years ago
Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the t
kramer

Answer:

Peter is maximizing his profit and is making an economic profit.

Explanation:

Peter's Pencils is a pencil producing firm in a perfectly competitive firm.

It produces 1,000 pencils an hour.

The total cost of producing 1,000 pencils is $500.

The market price of each pencil is $2.

The marginal cost of producing the last unit of a pencil at this point is $2.  

An individual firm in a perfectly competitive market faces a horizontal line demand curve which also represents the average revenue and marginal revenue.

This means that the marginal revenue earned from the 1,000th pencil is $2.  

The marginal revenue is equal to marginal cost, this implies that the firm is maximizing profits.

The average total cost of the firm is  

= \frac{TC}{Q}

= \frac{500}{1,000}

= $0.5

The average total cost is $0.5 which is lower than the price. This means that the firm is earning economic profits.

6 0
2 years ago
On June 30, 20X5, Mill Corp. incurred a $100,000 net loss from disposal of a business segment. Also, on June 30, 20X5, Mill paid
OleMash [197]

Answer:

$120,000

Explanation:

Total amount for inclusion in determining Mill Corp's net income or loss is as follows.

  • Net loss from disposal of business segment = $100,000
  • Property tax for 6 months to June 30, 20x5= $40,000 * 0.5 = $20,000

Therefore, total amount for inclusion = $100,000 + $20,000 = $120,000.

3 0
3 years ago
The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock
lukranit [14]

Answer:

Princeton Company

The T-accounts are attached.

Explanation:

They can also be obtained as follows:

1. T-accounts to calculate the Cash received from the sale of its common stock during 2017:

Common Stock & APIC

Closing balance of common stock = $131,000

Closing balance of APIC = $593,000

less Opening balance of common stock = $126,000

less Opening balance of APIC = $355,000

Cash collected = $243,000

2.  T-account to calculate the cash paid for dividends during 2017:

Retained Earnings:

Opening balance = $313,500

Add net income = $61,000

Less closing balance = $339,500

Cash Dividends paid = $35,000

Download xlsx
8 0
3 years ago
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