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Natasha2012 [34]
3 years ago
13

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers

. How will this business transaction affect the accounting equation
Business
1 answer:
hram777 [196]3 years ago
4 0

Answer:

Increase Assets (Supplies) and increase Liabilities (Accounts Payable).

Explanation:

In accounting the accounting equation is the basis for double entry recording of transactions. For every debit there must be an equal and credit.

Accounting equation= Liabilities+ Owners Equity

When Collins Landscape company made the purchase of landscaping supplies on account. That means the transaction was not payed for with cash, so there is an increase in accounts payable (a liability account)

We have an increase in landscaping supplies so Assets increases.

The journal entry will be a debit to Asset (supplies)to increase it, and a credit to account payable bro increase it.

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3 0
3 years ago
Rich and Lucy were married for 52 years. Rich died on May 9, 2020. Lucy has no dependents, and she did not remarry. The correct
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Rich died in 2020 and Lucy did not remarry. Lucy's 2020 returns can therefore be filed as a joint filing with Rich even though he is no longer alive.

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4 0
3 years ago
Read 2 more answers
Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future. The
My name is Ann [436]

Answer:

Option C is correct.

<u>The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.</u>

Explanation:

Real risk free rate = 3%

Inflation Premium = 5%

Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%

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3 years ago
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