Andrea's asset: $48,000 Assets is cash that she owns. Other assets include: property, equipment, furniture - which are all costs that she owns.
Deductions refers to her liabilities- Andrea's liabilities/ $7,500 which costs that she owes to companies, billing and Not that she owns. Such as: mortgage, bills, bank amount loans, expenses etc
Here is what Andrea as an accountant needs to do to find the annual gross: (steps are in order)
1) she lists all of the assets costs & total the assets As for andrea she added all her assets costs which is $48,000
2) she then lists all the liabilities costs & totals the liabilities costs Her liabilities costs which is $7,500
3) the last step- she must subtract the assets total & liabilities total
Now you are probably thinking how can that be the answer?!?
An accountant always checks :)
Here is Andreas checking process in order..
1) the answer 40,500 is her gross pay which in accounting terms it's her owner's equity because it is her amount of cash that she owns not giving it away. Think of it as a safe that her storages the money in.
2) in order to determine the total liabilities & owner's equity she must add the total liabilities + the owner's equity that we found.
Ex (total liabilities) $7,500 + $40,500 = $48,000!! That shows that our answer is correct we retraced our steps like an accountant and found that our answer equals (in accounting terms; balances) the total assets costs.
Here is how the balance sheets looks like: Andreas balance sheet
Owners equity (Andrea's safe) $40,500 by (Assets - liabilities)
Total liabilities & owner's equity (total liabilities + OE (owners equity for short) = $48,000
In accounting if your total assets which is for Andrea is $48,000 equals total liabilities & OE is $48,000 then your answer is correct. In accounting assets total Must equal total liabilities & OE
The international press is made up of a series of chains that cover basic aspects of the news. It is said that its usefulness in the massification of information is necessary, since they cover current news from different angles and allow people to enjoy high quality content and coverage.
1. The Textbook store is purchasing the books at $17 per book and in total 3500 books are purchased on credit. So, we debit the inventory account by 59500 (3500 * 17) and credit the Accounts Payable by 59500.
2. This transaction relates to Purchases return which in this case is our inventory of books. Textbook store will record this transaction in its books by debiting the Accounts Payable account by the value of the books returned 1700 (170* 100) and credit its inventory by 1700. The last line pertains to total estimation of sales returns by Piranha so we do not need to consider that while preparing transactions in Textbook store's books.
During the enable phase, a company would evaluate the progess and determine additional planing necessary to ensure that the operation run smoothly. Often times, transferring responsibilities to another organization that had larger jurisdiction would be seen as a more appropriate decision.
