Answer:
The correct answer is option A
Explanation:
A receipt of cash indicates an increase in cash which is an asset. When an asset increases, it is represented by a debit to that asset's account and the asset side of the accounting equation is also debited. Thus, a receipt of $12000 cash from stockholders will be represented by a debit or an increase to the asset account for $12000.
The other side of the transaction would be a credit to the equity for $12000 because the stockholders are the owners of the company and any capital invested by the owners in the company is represented by a credit to the equity account as the capital is credited when it increases. Thus, the effect on accounting equation will be an increase in the equity of $12000.
Answer:
The correct answer is letter "D": the growth of consumption is likely to remain sluggish even as the economy begins to recover.
Explanation:
If in an economy the household debt increases it is typically caused because of long-term investments like mortgage payments. As a result, the amount of disposable money of the households will decreases which will cause consumption in the overall market will move slowly, regardless the economy is recovering or not.
1,710 units
1,300 in inventory
+ 350 in transit
+ 80 on consignment
= 1730
- 20 damaged units
=1,710 units in period end inventory
Answer:
$90,000 loss on disposal
Explanation:
If the current year's depreciation of $45,000 is recorded, the loss on disposal will be $45,000 multiplied by 2 which is $90,000
Solution :
a). At the break even units, the total contribution margin = fixed expenses
We know that : (Selling price - variable cost) x units sold = fixed expenses
i.e. (20-14)x = 225,000
6x = 225,000
x = 37,500
Therefore, the number of units sold, x = 37,500
So, the break even analysis = 37,500 x 20
= 750,000
b). 
= 30%
The Breakeven sales = 
= 750,000
c). 
= 37.5%
d). Units needed :
units
Therefore, the sales required = 62,500 x 20
= 125,000
