An economy where the government sets prices, determines what and how many items will be produced, and assigns

For each of the following accounts, identify whether that item is an asset, liability, or equity account. Account Classificati

Ulleksa [173]

Answer:

a. Bonds payable Liability account

b. Equipment Asset account

c. Accounts payable Liability account

d. Salaries payable Liability account

e. Common stock Equity account

f. Retained earnings Equity account

g. Cash Asset account

h. Accounts receivable Asset account

i. Sales revenue Equity account

j. Inventory Asset account

Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.

8 0

3 years ago

Jones operates an upscale restaurant and he pays experienced cooks $35,000 per year. This year he hired his son as an apprentice

Novay_Z [31]

Answer:

E. None of these - Jones can only deduct reasonable compensation.

Explanation:

Jones would be allowed to deduct less than $ 35,000 (this is the reasonable compensation) under the conditions established by tax legislation. Let us see why none of the other options is correct.

A. Jones will be allowed to deduct $ 40,000 only if his son eventually develops into an expert cook

When a company pays an employee an exaggeratedly high salary considering the services performed (as an apprentice cook, this person is earning more than an experienced cook), the excessively high part of the salary is not subject to deduction. Even if Jones' son became an experienced cook, he would be unreasonably earning more than the others. Therefore, Jones would not be allowed to fully deduct $ 40,000. On the other hand, only the services actually provided during the current period are taken into account, not the eventualities.

B. Jones will be allowed to accrue $40,000 only if he pays his son in cash.

In no case Jones can accrue $ 40,000, as it is an excessively high amount, for the same conditions we saw in the previous point.

C. Jones will be allowed to deduct $35,000 as compensation and another $5,000 can be deducted as an employee gift.

Awards must meet the following requirements in order to be deducted: they must be personal tangible property of the employer, they must be given to an employee for years of service or safety achievement, they must be delivered in recognition of a significant achievement, and they must be given under strict conditions, in order to completely eliminate the possibility that it is really a disguised payment.

In this case, it seems that it is a disguised pay, therefore, no deduction can be made.

D. Jones can only deduct $20,000 because an apprentice cook is only worth half as much as an experienced cook

That is not a valid reason to apply for a tax deduction. Recall that the payments to the worker are considered tax-deductible expenses if they meet the following characteristics: they are ordinary and necessary expenses, reasonable in quantity, paid for services actually provided, and paid during the current year.

4 0

4 years ago

A baker is interested in buying 5000 bushels of wheat on September 2020. He has a target price of $3.15/bushel and wants to hedg

Alborosie

Answer:

Long 5 November fates for wheat today, counterbalance position on September 2020, purchase wheat in the spot showcase in September 2020.

Explanation:

The risk included is upward development in the value, the helpful situation in prospects would be taking long position. Since, the fates are accessible for November month, take long situation on November and balance the situation in September by taking short situation for November month and purchase the wheat in the spot market.

3 0

4 years ago

When kwame listens to a customer, he paraphrases the customer's request or complaint to make sure he understands it. which activ

Inga [223]

When Kwame listens to a customer, and he pharaphrases the request or complaint of a customer to understand it, he is using an active listening skill called reflecting. It is an important skill to acquire the customer's idea, stating the idea back to the customer, and reapeat until it is confirmed that both ideas match which would mean understanding the statement correctly.

7 0

3 years ago

Discuss the effects of the hard lockdown on Eskom's operations?

ICE Princess25 [194]

The effect of the hard lockdown on Eskom's operations was that the parliamentary committees had to leave officials in Pretoria.

<h3>What were Eskom's operations?</h3>

Eskom's operations refer to the operation of the Electricity Supply Commission in South Africa.

When the hard lockdown was placed during the pandemic on Eskom's operations in South Africa, this led to parliamentary committees leaving the officials in Pretoria because they believed that having digital meetings will be better than face-to-face.

hence, The effect of the hard lockdown on Eskom's operations was that the parliamentary committees had to leave officials in Pretoria.

learn more about Eskom's operations:

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8 0

2 years ago