1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alik [6]
3 years ago
5

The company purchases equipment with cash - The Equity account does the following:

Business
1 answer:
avanturin [10]3 years ago
3 0

Answer:

The correct answer would be C, No Effect.

Explanation:

In Balance Sheet, there are two sides, one side contains Assets and Liabilities, whereas the other side contains Owner's Equity. When ever there is a change in the accounts head, the changes are reflected in the balance sheet or the concerned financial statement. In this question, The company purchases equipment, which is an asset, from cash. This transaction can be shown by the following entry:

Debit                                            Credit

Equipment(Asset)                         Cash

In this entry, we can see that cash is being credited, which means, owners equity is decreased, but at the same time, equipment is debited, which means assets are increased, and when assets increase, it means owners equity is increased. So there won't be any effect on the owner's equity because equity is just converted from cash to assets. There will be no increase or decrease in the owners equity. It will remain same.

You might be interested in
Business collected S6,600 rent in advance on July 1. Accountant record the journal entry for this collected amount on July 1. Th
suter [353]

Answer:

This is correct

Explanation:

There will be two entries. One at the time of receiving cash on 1st July . That would be

Cash. B. $6600 (debit)

Unearned Rent Revenue. $ 6600 (credit)

On 31st Dec an adjusting entry would be made . The rent for 6 months will be calculated which will be as given above.

Rent for 6 months = ( 6,600/12 )* 6= $ 3,300

The entry will be

Unearned Rent Revenue $3,300 (debit)

Rent Revenue $ 3,300 (credit)

$ 3300 will be deducted from the current liabilities on the credit side.

Rent Revenue of $3300 will be added on the credit side of the income statement.

3 0
3 years ago
Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is a
Solnce55 [7]

Answer: Razor and blade strategy

Explanation:

The Razor Blade Model is a model that is used by companies to deeply discount or give away a core product hoping that the consumers will buy the more expensive and complementary dependent products.

The razor and blades business model is a model whereby one item is sold at a cheaper price or sometimes given for free so as to increase the sales of its complementary good. For example, ink catridges are required for inkjet printers and software and accessories are used for game consoles. So, selling ink catridges at a low rate can lead to more sales for inkjet printers.

7 0
3 years ago
When will diversity effect the workplace?
iVinArrow [24]
D. it already does. Diversity affects everything, sometimes in a bad way, but in most cases diversity is what keeps society moving. 
3 0
3 years ago
Read 2 more answers
Antonio has $11.00 to spend on a lunch consisting of hamburgers ($1.50 each) and French fries ($1.00 per order). Antonio's satis
saveliy_v [14]

Answer: <em>$4. 71 hamburger and $6.29 French fries. </em>

Explanation:

Total spendable income of Antonio = $11.00  

1 hamburger = $1.50

1 order of French fries = $1.00

Utility maximization function: U(x1, x2) = x1x2 i.e. 1 hamburger and 2 orders of French fries

Using the Utility maximization function: U(x1, x2) = $1.50 + $2.00

                                                                                      = $3.50 per lunch  

Therefore the customer will purchase hamburger worth of $(1.50 x 11.00/3.50) = $4. 71

And French fries orders worth of $(2.00 x 11.00/3.50) = $6.29

<em>Antonio will maximize his satisfaction by purchasing $4. 71 hamburger and $6.29 French fries. </em>

3 0
3 years ago
The follow passage describes how a catalytic converter in a car works. The catalytic converter mostly likely was developed in re
Mashcka [7]

Answer:

Its A

Explanation:

Its A

5 0
2 years ago
Other questions:
  • True or False. Within an Agent Handler group, if the handler with the highest priority is unavailable, the agent will fall back
    11·1 answer
  • Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O Un
    5·1 answer
  • On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost
    7·1 answer
  • Patten, in the article "Malawi Versus the World Bank," notes that the goal of the World Bank and IMF is to loan poor countries m
    5·1 answer
  • The term ________ refers to a factory that is guilty of some sort of labor abuse or violation, such as unsafe working conditions
    11·1 answer
  • The government decides to increase its spending by $6 billion. Over time the real GDP increased by $9 billion. The expenditure m
    12·1 answer
  • Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once.
    15·1 answer
  • The following transactions occurred during April 2021 at the Kanthere, a retailer selling headphones. For the selected transacti
    13·1 answer
  • The company has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8
    9·1 answer
  • Decision Point: Deciding on Your Organizational Structure
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!