Cash is the real money that we have while cash equivalents are instruments that can be turn to cash quickly. They are very liquid.
Treasury bills are cash equivalents. They are very liquid and can be converted into cash quickly. They are instruments in the money market.
Going by this above explanation, the Cash and Cash Equivalents that will be reported on the balance sheet are:
Cash --------------------------------------- $1,900
Treasury bills purchased--------------$500
Total-------------------------------------------<u>$2,400</u>
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$2,400 will be reported as Cash and Cash Equivalents on the balance sheet.
Answer:
Rose Marie received $152 in earned income and $25 in transfer payments.
Explanation:
Based on the information provided within the question it can be said that in this scenario Rose Marie received $152 in earned income and $25 in transfer payments. The $152 from her "side hustle" is basically from a service that she provided, which she worked (earned) for. Since the other payment was given to her from her grandmother, it is said to have transferred ownership, thus it is a transfer payment.
Answer:
debit Income Summary $12,000; credit Retained Earnings $12,000.
Explanation:
Based on the information given The entry to close Income Summary is:
Debit Income Summary $12,000
Credit Retained Earnings $12,000
(To close Income Summary)
Answer:
Explanation:
Assets = Liabilities + Stockholder's equity
Cash= Common stock+Retained earnings
1. Cash
revenues 34600 NA NA 34600
2. Paid
expenses(15200) NA NA (15200)
3. Paid
dividend (3500) NA NA (3500)
Ending balance 15900 = 0 + 0 + 15900
Income statement
Revenue $34600
Expense (15200)
Net income $19400
Statement of changes in stockholders’ equity
Common stock $0
Retained earnings:
Net income $19400
Less: dividends (3500)
Total stockholder's equity $15900
Balance sheet
Assets:
Cash $15900
Liabilities $0
Stockholder's equity:
Common stock 0
Retained earnings 15900
Total stockholder's equity $15900
Total liabilities and stockholder's equity $15900
