Answer:
1. Dr Cash $8,290
Cr Common stock $8,290
2. Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
3. No Entry $0
No Entry $0
Explanation:
Preparation of the entries to record the transactions
1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:
Dr Cash $8,290
Cr Common stock $8,290
(Being To record the investment)
2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:
Dr Supplies $980
Cr Cash $390
Cr Accounts payable $590
($980-$390)
(Being To record the purchase of supplies)
3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.
No Entry $0
No Entry $0
Answer:
Ending inventory= $3,485
Explanation:
Giving the following information:
Beginning inventory= 8 units for $200 each
On October 2= purchased 20 units at $205 each.
11 units are sold on October 4.
u<u>nder the FIFO (first-in, first-out) inventory method, the ending inventory is calculated using the cost of the last units incorporated into inventory.</u>
Ending inventory= 17*205= $3,485
Answer: Bad Debt Expense 28,000 Allowance for Doubtful Accounts 28,000
Explanation:
Account receivable = 300,000
Percentage uncollectible = 10%
Current balance = 2000
Adjustment to allowance for uncollectible accounts is given by :
(Account receivable ×percentage uncollectible) - current balance
(300,000 × 10%) - 2000
(300,000 × 0.1) × 2000
30,000 - 2000 = 28,000
Therefore, adjustment should be :
bad debt expense debit 28,000
allowance for doubful account credit 28,000
Answer:
The correct answer is letter "C": People place a higher value on a good if they own it than they do if they are considering buying it.
Explanation:
The Endowment Effect reflects a situation in which people value an object more because they own it. The value they would give the object if they did not have it and were going to purchase it would be lower. This scenario takes place when people give a higher value to their objects because of emotional attachment.
