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vova2212 [387]
3 years ago
13

The following events occurred for Favata Company: a. Received $13,000 cash from owners and issued stock to them. b. Borrowed $10

,000 cash from a bank and signed a note due later this year. c. Bought and received $1,100 of equipment on account. d. Purchased land for $18,000; paid $1,600 in cash and signed a long-term note for $16,400. e. Purchased $6,000 of equipment, paid $1,600 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. (Enter any decreases to account balances with a minus sign.)
Business
1 answer:
Vladimir [108]3 years ago
4 0

Answer and Explanation:

The indication of the account, amount and the direction of the effect are as follows

As we know that

Accounting equation is

Total assets = Total liabilities + stockholder equity

Based on this, the indication and the direction aare as follows

        Assets                  =              Liabilities            +            Stockholders' Equity

A)        $13,000              =                   0                    +                 $13,000

It increased both the assets and the stockholder equity i.e capital

B)        $10,000                 =                $10,000        +                     0

It increased both the assets and the liabilities

C)       $1,100                   =                $1,100                +                     0

It increased both the assets and the liabilities

D)    +$18,000 -$1,600       =             $16,400            +                     0

It increased the land by $18,000 and decreased the cash by $1,600 and at the same time it increased the liabilities by $16,400

E)      +$6,000 -$1,600      =                  $4,400              +                    0          

It increased the equipment by $6,000 and decreased the cash by $1,600 and at the same time it also increased the liabilities by $4,400

Total   $44,900                 =                  $31,900              +                 $13,000

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The two primary opportunities in safe for driving relentless improvement are option A. Iteration Retrospective and option D. Inspect and Adapt workshop. Hence, the correct answers are options A. and D.; Iteration Retrospective and Inspect and Adapt workshop respectively. Read below about Iteration Retrospective.

<h3>What is Iteration Retrospective?</h3>

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The complete question goes thus:

What are two SAFe primary opportunities for driving relentless improvement? (Choose two)

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7 0
2 years ago
A company with a high ratio of fixed costs:
garik1379 [7]

Answer:

The correct answer is: more likely to experience a loss when sales are down than a company with mostly variable costs.

Explanation:

The fixed cost ratio is a simple ratio that divides fixed costs by net sales.

The profit formula is:

Profit = Sales- Total cost =(Price * Q)-(FC + VC*Q)

Where  

FC=Fixed cost

VC= variable cos t

Q=produce quantity

If sales go down,  we have to pay this fixed cost even if we have no sales.  So if this Fixed cost are high ,  is most likely we are going to experience loss

4 0
3 years ago
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos
musickatia [10]

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

Output (Q) = 100

Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

AFC = TFC / Q

TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

5 0
3 years ago
At December 31, 2019, Oriole Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 109,261
solong [7]

Answer:

The company should report the 03 EPS figures on its 2020 income statement:

EPS continuing operations = $3.64

EPS discontinued operations = $(0.54)

EPS net income = EPS continuing operations + EPS discontinued operations = $3.10

Explanation:

<u>* Calculation in EPS continuing operations:</u>

EPS continuing operations = (Net income from continuing operation - preferred dividend)/No. of common shares outstanding

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EPS continuing operations = ($16,022,370 - $1,092,610) / 4,099,840= $3.64

<u>* Calculation in EPS discontinued operations:</u>

EPS discontinued operations = Net income from discontinuing operation /No. of common shares outstanding

in which: Net income from continuing operation = Income from discontinuing operations before taxes * (1- tax rate) = (3,399,100) * (1-35%) = $(2,209,415)

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EPS discontinued operations = (2,209,415)/ 4,099,840 = $(0.54)

5 0
3 years ago
Suppose that the pound is pegged to gold at 6 pounds per ounce, whereas the franc is pegged to gold at 12 francs per ounce. This
zmey [24]

Answer:

we can look at this problem from 2 different point of views:

if you have francs and wish to buy pounds: then you take 12 francs and purchase 1 ounce of gold, and then you sell it for 6 pounds. This way you will only spend 2 francs per each pound instead of 2.2.

if you have pounds and want to make a gain: you take 6 pounds and purchase 13.2 francs and you then buy 1.1 ounces of gold. Then you sell the 1.1 ounces of gold in exchange for 6.6 pounds.

Any of the scenarios does not include any transaction prices nor shipping costs, it is only theoretical.

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3 years ago
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