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Novay_Z [31]
3 years ago
8

The following events occurred for Favata Company: a. Received $10,000 cash from owners and issued stock to them. b. Borrowed $7,

000 cash from a bank and signed a note due later this year. c. Bought and received $800 of equipment on account. d. Purchased land for $12,000; paid $1,000 in cash and signed a long-term note for $11,000. e. Purchased $3,000 of equipment, paid $1,000 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. (Enter all amounts as positive values.)
Business
1 answer:
Marina86 [1]3 years ago
6 0

Answer:

(a)

Increase in Cash of $10,000 and Increase in Common Stock account of $10,000

Asset increases by $10,000; Owner's equity increases by $10,000. Accounting equation remains in balance.

(b)

Increase in Cash of $7,000 and Increase in Short-term Note Payable account of $7,000

Asset increases by $7,000; Liability increases by $7,000. Accounting equation remains in balance.

(c)

Increase in Fixed Asset of $800 and Increase in Account Payable account of $800

Asset increases by $800; Liability increases by $800. Accounting equation remains in balance.

(d)

Increase in Fixed Asset of $12,000, Decrease in Cash of $1,000 and Increase in Long-term Note Payable account of $11,000

Asset increases by $11,000; Liability increases by $11,000. Accounting equation remains in balance.

(e)

Increase in Fixed asset of $3,000, Decrease in Cash of $1,000 and Increase in Account Payable account of $2,000

Asset increases by $2,000; Liability increases by $2,000. Accounting equation remains in balance.

Explanation:

Explanation is given in Answer part

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Market failure describes a situation in which the market itself ________ in a way that balances social costs and benefits.
Lina20 [59]

A situation known as a "market failure" occurs when the market itself is unable to efficiently distribute resources in a way that balances social costs and benefits.

Market failure refers to a situation where there is an inefficient allocation of products and services on the open market. The individual incentives for rational behavior do not result in rational outcomes for the collective in a market failure.

In other words, each person chooses what is best for themselves, but those choices end up being bad for the collective. This can occasionally be demonstrated in conventional microeconomics as a steady-state disequilibrium condition.

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8 0
2 years ago
Whispering Winds Corporation owns equipment that cost $64,800 when purchased on April 1, 2013. Depreciation has been recorded at
Aleonysh [2.5K]

Answer:

(a) update depreciation for 2018

Debit ; Depreciation $10,800

Credit Accumulated Depreciation  $10,800

(b) record the sale

Debit : Cash $12,960

Debit : Accumulated Depreciation $62,100

Credit : Profit and Loss $10,260

Credit : Equipment at Cost $64,800

Explanation:

(a) update depreciation for 2018

Recognize deprecation

(b) record the sale

Recognize proceeds from sale and profit or loss from sale

7 0
3 years ago
Which of the following countries contributes the least amount of aid to foreign countries and multinational organizations based
katrin [286]

The country that contributes the least amount of aid to foreign nations and multinational organizations based on its GNI is the B. United States.

<h3>How much aid does the U.S. contribute?</h3>

The U.S. is perhaps the largest donor to international organizations and foreign nations with billions going to other nations annually.

The percentage that is given as aid is however a small amount of U.S. national income thanks to the staggering amount earned by Americans in a year.

Options for this question include:

A. United Kingdom

B. United States

C. Germany

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4 0
2 years ago
A firm reports the following data:________.
ANEK [815]

Answer and Explanation:

The computation is shown below:

a. For Account receivable days is

= Total number of days in a year × account receivable balance ÷ Sales

= 365 days × $50,000 ÷ $445,000

= 41.01 days

b. For inventory days

= Total number of days in a year × inventory balance ÷ Cost of Goods sold

= 365 days × $50,000 ÷ $280,000

= 65.18 days

c. For Account payable days

= Total number of days in a year × account payable balance ÷ Cost of Goods sold

= 365 days × $42,000 ÷ $280,000

= 54.75 days

d. For a cash to cash days

= Account receivable days + inventory days - account payable days

= 41.01 + 65.18 + 54.75

= 51.44 days  

5 0
3 years ago
The hyrbrid automobile grew out of automobile designers' realization that there were changes in the legal environment regarding
MrRa [10]

Answer: True

Explanation:

Hybrid cars use both electricity and gasoline motors and engines. The concept behind this is that the electricity gives the car better acceleration and the gasoline then maintains it.

Developed countries tax gasoline due to its emissions but don't really tax electricity. On realizing this, designers recognized that they could combine both gasoline and electricity to create hybrids that would decrease the cost of taxation of using gasoline.

5 0
3 years ago
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