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borishaifa [10]
3 years ago
12

In recording an accounting transaction in a double-entry systema.the number of debit accounts must equal the number of credit ac

counts.b.there must always be entries made on both sides of the accounting equation.c.the amount of the debits must equal the amount of the credits.d.there must only be two accounts affected by any transaction.
Business
1 answer:
Elodia [21]3 years ago
4 0

Answer:

c. The amount of the debits must equal the amount of the credits.

Explanation:

a. The number of debit accounts must equal the number of credit accounts.

An account means <u>one record entry</u> of a transaction. There may be more credit or more debit accounts, depending on the transactions.

b. There must always be entries made on both sides of the accounting equation.

Although this happens most often, it is not always true.

The Accounting Equation: Assets = Liabilities + Owner's Equity

The two sides are separated by the equal sign. There can be a transaction that's only on one side. Example:

I buy a chair for $50 cash. Only the furniture and cash accounts are affected, and they are both on the assets side.

c. The amount of the debits must equal the amount of the credits.

This must always be equal. When you increase an asset (debit), you will increase owner's equity (credit). When you decrease an asset (credit) you could either decrease owner's equity or liability (debit).

d. There must only be two accounts affected by any transaction.

This is untrue. Sometimes, three or more accounts can be affected. For example, if I <u>buy a chair</u>, giving <u>$20 down payment</u> and borrowing <u>$30 from the bank</u>. The three accounts affected are furniture (increase by $50), cash (decrease by $20), and bank loan (increase by $30).

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TriStar Company, a small biotechnology firm, has borrowed $250,000 to purchase laboratory equipment for gene splicing. The loan
Komok [63]

Answer:

$54,078.85

Explanation:

This is a Time Value of Money question, We are required to find the Payment (Pmt) from the following given parameters :

Pv = $250,000

i = 8%

n = 6

P/yr = 1

Fv = $ 0

Pmt = ?

Pmt = <em>$54,078.85</em>

Therefore Payment per year is <em>$54,078.85</em> (using a financial calculator)

8 0
3 years ago
Lopez Corporation incurred the following costs while manufacturing its product.
aev [14]

Answer:

a. $352,200

b. $372,100

Explanation:

The cost of goods manufactured

<em>Consider only the manufacturing costs</em>

Cost of goods manufactured = $122,200 + $69,200 + $17,600 + $113,100 + $34,000 + $13,300 - $17,200

                                                =$352,200

Cost of goods sold

<em>Add Cost of goods manufactured to the net of Finished inventory balance</em>

Cost of goods sold = $47,900 $68,800 + $352,200 - $47,900

                                = $372,100

6 0
2 years ago
Why has the provider of choice shifted from rail to motor modes? With the shift to motor freight carriers, the amount of traffic
babymother [125]

Answer:

Why has the provider of choice shifted from rail to motor modes?

When companies change their modus operandi, it is usually to minimize cost and maximize profit. This provider of choice therefore has probably determined that motor modes were more cost effective for the services it offers vs using trains and rail modes for transport and has now made the appropriate switch.

With the shift to motor freight carriers, the amount of traffic accidents have sky rocketed.

With the provider of choice now using motor modes as opposed to rail, there is bound to be more vehicles on the road now from motor bikes all the way to trucks and with an increase in the number of vehicles available, there is bound to be an increase in accidents involving vehicles.

6 0
2 years ago
The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last
emmasim [6.3K]

Answer:

$1

Explanation:

The computation of the dividend per share is shown below:

Given that

Earning per share for this year =4

Target Payout Ratio = 25%

Paid dividend per share = $0.60 per share

Based on the above information, the dividend per share is

= Earning per share  × Payout Ratio

= 4 × 25%

= 1

Therefore, Dividend per share is 1

We simply multiplied the earning per share with the payout ratio so that the dividend per share could come

5 0
3 years ago
Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, for $320,000. The equipment was expected to hav
kiruha [24]

Answer:

The amount of depreciation expense for the years ended December 31, 2015, 2016, 2017, and 2018, by;  

(a) the straight-line method are; $71,250, $71,250, $71,250 and $71,250 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

(b) the units-of-output method are; $102,600, $91,200,$62,700 and $28,500 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

(c) the double-declining-balance method are; $160,000, $80,000,$40,000 and $5,000 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

TOTAL depreciation expense for the four years by each method are;

a) the straight-line method is $285,000

(b) the units-of-output method is $285,000

(c) the double-declining-balance is $285,000

Explanation:

i. In applying the striaght-line method of depreciation, the residual value of $ 35,000 is deducted from the cost of the equipment to get $285,000. Then $285,000 is divided by the number of useful life of 4 years. This will yield to a uniform depreciation expenses of $71,250, $71,250, $71,250 and $71,250 for years ended December 31, 2015, 2016, 2017, and 2018 respectively.

ii. Using units-of-output method, the rate par hour is first determined by $285,000/20,000=$14.25/1 hr.

2015 = $14.25X7,200 hrs=$102,600

2016 = $14.25X6,400 hrs=$91,200

2017 = $14.25X4,400 hrs=$62,700

2018 = $14.25X2000 hrs=$28,500

ii. Applying double-declining-balance method requires a more careful approach. first we have to calculate the depreciation rate. (1/4 X 100 =25%). then double the rate (25%X2=50%).

2015 = $320,000 X 50% =$160,000

2016 = $160,000 X 50%= $80,000

2017 = $80,000 X 50%=$40,000

2018 = $40,000 - $35,000= $5,000. Where $35,000 is the residual value in year 4.

5 0
3 years ago
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