All categories

3 years ago

If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:

Business

1 answer:

Over [174]3 years ago

7 0

Answer:

no impact

Explanation:

The journal entry to purchase the supplies for cash

Supplies Dr $ 1,300

To Cash A/c $ 1,300

(Being the purchase of supplies is recorded)

For recording this we debited the supplies as it increased the assets and credited the cash as it decreased the assets

Therefore there is no impact on the accounting equation

You might be interested in

Which of the following is not a role of accounting in business?

Kipish [7]

Answer:

The correct answer is letter "D": To personally guarantee loans of the business.

Explanation:

Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions -given a method- in financial statements. The financial statements that accountants create provide critical information for many key people such as managers, stakeholders, and the corresponding agencies of the government.

However, <em>securing a loan for a company will rely on the credit history of the institution which directly does not involve one of the functions of corporate accounting.</em>

5 0

3 years ago

A company had the following partial list of account balances at year-end: Sales Returns and Allowances $ 1,000 Accounts Receivab

ArbitrLikvidat [17]

Answer:

$91,900

Explanation:

The computation of net sales revenue is shown below:-

Here, for reaching the net sales revenue we add the sales revenue and deduct the sales return and allowances with sales discounts

Net sales revenue = Sales Revenue - Sales Returns and Allowances - Sales Discounts

= $95,000 - $1,000 - $2,100

= $91,900

Therefore we have applied the above formula.

4 0

3 years ago

You are to receive $500 at the end of one year; $250 at the end of two years; $300 at the end of three years. if the interest ra

Ulleksa [173]

The value is 210 dollars

6 0

3 years ago

Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas

Vikki [24]

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

$FV=P(1+r)^{t}$

$FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290$

= $6737.51

(b) If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290$

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290$

= $8061.47

8 0

3 years ago

Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu

elena-14-01-66 [18.8K]

Answer:

a. Karen Meyer's personal records

c. American red cross

Explanation:

The $6,000 contribution should be recorded in Karen Meyer's personal records because 1) the donation was made on her personal name 2) a donation of such size is relevant when Karen files her taxes.

The contribution should also be recorded in the American red cross records because the organization needs to clarify to the tax authorities where each sum of money it obtains comes from.

6 0

3 years ago