1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry_Shevchenko [17]
3 years ago
6

At the beginning of the year, Cullumber Company had total assets of $864,000 and total liabilities of $523,000. (Treat each item

independently.) (a) If total assets increased $156,000 during the year and total liabilities decreased $86,000, what is the amount of stockholders’ equity at the end of the year? Stockholders’ equity $enter a dollar amount (b) During the year, total liabilities increased $91,000 and stockholders’ equity decreased $77,000. What is the amount of total assets at the end of the year? Total assets $enter a dollar amount (c) If total assets decreased $90,000 and stockholders’ equity increased $103,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities $enter a dollar amount
Business
1 answer:
Radda [10]3 years ago
7 0

Answer:

a. $583,000

b.  $878,000

c. $330,000

Explanation:

In this question, we have to use the accounting equation which is presented below:

Total assets = Total liabilities + stockholder's equity

$864,000 = $523,000 + stockholder's equity

So, the stockholder's equity = $864,000 - $523,000 = $341,000

a. New assets = Old assets + addition

                       = $864,000 + $156,000

                       = $1,020,000

New liabilities =  Old liabilities - reduction

                       = $523,000 - $86,000

                       = $437,000

So, the stockholder's equity = $1,020,000 -  $437,000 = $583,000

b. New liabilities =  Old liabilities + addition

                           = $523,000 + $91,000

                           = $614,000

New equity =  Old equity - reduction

                   =  $341,000 - $77,000

                   = $264,000

So, the total assets = New liabilities + New equity  

                                =  $614,000 + $264,000

                                = $878,000

c. New assets = Old assets - reduction

                       = $864,000 - $90,000

                       = $774,000

New equity = Old equity + addition

                   = $341,000 + $103,000

                   = $444,000

So, the total liabilities = $774,000 - $444,000 = $330,000

You might be interested in
Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the merchandise on hand at t
cricket20 [7]

Answer:

The missing part of the question is found below:

Cinnamon Buns Co. (CBC) started 2021 with $52,000 of merchandise on hand. During 2021, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.

Option A,$318,000 is correct

Explanation:

The points to note  in answering this question are :

The opening inventory of $52,000 was overvalued as $10,000 out of it was held for third as consignment,hence it does belong to Cinnamon Buns Co(CBC).

Secondly,in calculating the costs of goods available the freight charges are disregarded since it assumed to have been paid by the supplier.

Lastly discounts are assumed not have been taken,as a result the purchase and returns should be stated at invoice prices.

Restated opening inventory=$52,000-$10,000=$42,000

Merchandise purchased is $280,000

merchandise returned is $4,000

Costs of goods available=opening inventory+purchases-returns

                                         =$42,000+$280,000-$4000

                                         =$318,000

4 0
3 years ago
An employee earns $16 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. assume that the employee w
Tatiana [17]

Total pay for this week = $16*40 + $16*1.75*10 = $920

Prior Gross pay = 23,200

Total Gross pay = 920 +23,200 = $24,120

Social security = 0.06*24,120 = $1,447.20

Medicare = 0.015*24,120 = $361.80

Federal Tax withheld = $212

Total deductions = 1447.20 +361.80+212 = 2,021

Total Net Pay = 24,120 -2,021 =$22,099

7 0
2 years ago
Ninth national bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. with a required reserve ratio of
hram777 [196]
We are asked to solve for the excess reserves. There are given values such as:
Checkable deposits = $ 150,000,000
Total reserves = $12,000,000
Required reserve ratio = 8%

Solving for reserve amount, we have:
Reserve amount = 0.08 * $150,000,000 = $ 12,000,000

Solving for the excess:
Excess reserves = $ 12,000,000 - $12,000,000 = $0

The answer is $0.
3 0
2 years ago
Arthur Industries entered into the following transactions during the month of June. Purchased supplies for $5,300 cash. Paid $4,
VMariaS [17]

Answer:

S/N   Account Titles and Explanation      Debit     Credit

A       Supplies                                             $5,300

              Cash                                                             $5,300

          (To record the purchase of supplies for cash)

B       Salaries and wages expense            $ 4,480

              Cash                                                             $4,480

         (To record the payment of wages and salaries)

C        Prepaid rent                                       $ 560

               Cash                                                             $560

          (To record the payment of prepaid rent for July)

D        Accounts receivable                           $13,400

                Service revenue                                         $13,400

         (To record the services provided on account)

E         Accounts payable                               $800

                   Cash                                                          $800

           (To record the payment made on Accounts payable)

F          Cash                                                     $310

                    Unearned revenue/Deferred revenue    $310

           (To record the unearned services revenue)

G          Repairs and maintenance expense  $410

                     Accounts payable                                     $410

             (To record the accounts payable for repairs expenses incurred)

H           Equipment                                          $740

                      Cash                                                           $740

             (To record the purchase of equipment for cash)

8 0
2 years ago
Which of the following statements about the Uniform Commercial Code (UCC) is correct?
KiRa [710]

Answer:

D. The UCC consists of identical statutes enacted by the states to provide businesses with consistent and predictable laws.

Explanation:

<em>The Uniform Commercial Code (UCC)</em> is a standardized set of laws and regulations for conducting commercial transactions.

Initially, the UCC code was established as it was increasingly difficult for companies to carry out commercial transactions through state lines, given the various state laws.

The Uniform Commercial Code (UCC) is important as it helps companies in different states to make transactions with each other by providing a standard legal and contractual framework.

The UCC code consists of nine articles. The articles of the UCC govern several types of transactions, including banking and loans.

4 0
3 years ago
Other questions:
  • The new "Hungry for Apples?" campaign has been a resounding success, so that the quantity demanded is now 100% greater than befo
    12·1 answer
  • What are four reasons to limit the scope of a small business
    5·1 answer
  • The _____________ is the contract that seals the deal when you buy a car.
    11·1 answer
  • Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cas
    6·1 answer
  • Suppose the price of a bag of jelly beans rises from $1.60 to $2.00, with the result that sales of jelly beans falls from 120 ba
    10·1 answer
  • Match each Employee Handbook term with its description.
    9·1 answer
  • On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudou
    11·1 answer
  • The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchase
    9·1 answer
  • Suppose Saron has 7 Birr to be spent on two goods: banana and bread. The unit price of banana is 1 Birr and the unit price of a
    5·1 answer
  • During Year 3, Rex Co. introduced a new product carrying a 2-year assurance-type warranty against defects. The estimated warrant
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!