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3 years ago

14

If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in

the owner’s equity amount?

1 answer:

Usimov [2.4K]3 years ago

6 0

The owner has $2,000 more in assets. therefor the equity increased by 2,000

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Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have

andriy [413]

Answer & Explanation:

Straight Line table

$\left[\begin{array}{cccc}Year&dep \: expense&acc \: dep&net\: book \: value\\0&-&-&190,000\\1&45,250&45,250&144,750\\2&45,250&90,500&99,500\\3&45,250&135,750&54,250\\4&45,250&181,000&9,000\\\end{array}\right]$

<em><u>The straight-line Method</u></em> is simply and easy to understand, It distribute the depreciation equally between years. So that implies that the formula should be:

$\frac{Adquisition \: Value- \: Salvage \: Value}{useful \: life}= Depreciation \: coplete \: year$

195,000 - 9,000 = 181,000

181,000 / 4 = 45,250

Double Declining table

$\left[\begin{array}{cccc}Year&Dep \: Exp&Acc \: Dep&Ending \:Book \:Value\\0&-&-&190,000\\1&95,000&95,000&95,000\\2&47,500&142,500&47,500\\3&23,750&166,250&23,750\\4&14,750&181,000&9,000\\\end{array}\right]$

<em><u>The Double declining </u></em>You double the straight line rate

$\frac{1}{useful \: life} \times 2 = DD \: rate \\\\(1/4) \times 2 = 1/2$

Current Book Value x rate = depreciation expense

190,000 x 1/2 = 95,000

8 0

2 years ago

You currently manage Cody’s investment portfolio. He provided you with the following information for the beginning and the end o

MaRussiya [10]

Answer:

The correct Statement is the return on investments ratio is within the normal range.

Explanation:

Return on IRA = IRA balance - IRA beginning ÷ IRA beginning

= ($82,000 - $75,000) ÷ $75,000

= 9.33%

So, The return on the IRA ratio is 10% is incorrect

Return on Net Worth =(Net worth (end of the year) - Net worth (beginning of the year)) ÷ Net worth (beginning of the year)

= ($970,000 - $1,000,000) ÷ $1,000,000

= -3 %

Here, the second part is also incorrect as net worth ratio is 3.5%. and it come in negative return .

The return on investment, the return on IRA and the return on net worth ratios are all within the usual range is incorrect as Return on Net Worth is Negative.

Therefore, the correct Statement is the return on investments ratio is within the normal range.

Return on IRA = (Investment balance (end of year) - Investment balance (beginning of year) ÷ Investment balance (beginning of year)

= ($115,000 - $100,000) ÷ $100,000

= 15%

8 0

3 years ago

Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00

mote1985 [20]

Answer:

The correct answer is $310,470.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate gross profit:

Gross profit = Sales - Cost of Goods Sold = $796,000 - $327,000 = $469,000

Now, Earnings Before Tax = Gross profit - Depreciation - Interest

= $469,000 - $42,000 - $34,000 = $393,000

So, Net income = Earnings Before Tax - Tax percent on EBT

= $393,000 - 21% × $393,000

= $393,000 - $82,530

= $310,470

6 0

3 years ago

Read 2 more answers

Explained moral lessons for the life of Okomfo Anokye

mariarad [96]

Answer:

It is said that when Okomfo Anokye was born in Awukugua he was already holding in his right hand a short white tail of a cow (Podua); and he had so firmly clenched the fist of the other hand that no one could open it. The woman who went to deliver the labouring mother tried to open it because she suspected there was something in it. The father was called in to assist... Okomfo Anokye opened his eyes and, staring at the father, quickly opened the mysterious hand, showing it to the father and saying "Ano....Kye" (Guan language) meaning "Ano...see" and gave to the father what was in it. It is alleged that it was a talisman. From this incident Kwame Agyei got his name "Anokye".

Explanation:

6 0

3 years ago

Our company makes sophisticated lenses for satellite cameras. We allocated our overhead (OH) costs using practical equipment mac

ser-zykov [4K]

Answer:

If we made the switch, our OH rate would be closest to: $30.40 per MH

Explanation:

Overhead Rate is used to allocate manufacturing overheads (indirect costs) to jobs and departments.

In our senario Overhead rate are used to allocate fixed manufacturing overheads to production of lenses for satellite cameras.

Overhead Rate = Budgeted Overheads / Budgeted Activity

= $760,000/ 25,000

= $30.40 per practical equipment machine hour

5 0

3 years ago