All categories

3 years ago

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

The Goodyear Tire & Rubber Company's December 31, 2016, financial statements reported the following (in millions). Cash Dece

Gnom [1K]

Answer:

A. $1,476 million.

Explanation:

Cash at beginning of the year + cash from operating activities + Cash from investing activities + cash from financing activities

Cash at beginning of the year + $1,504 -$973 -$875 = $1132

Cash at beginning of the year - $344 = $1132

Cash at the beginning of the year = $1132 + $344

Cash at the beginning of the year = $1,476 million

6 0

3 years ago

Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo.

motikmotik

Answer:

a. Joplin Industries Inc.

Absorption Costing Income Statement

For the Month Ended June 30

Sales $81,000,000

Less: Beginning inventory $4,387,200

Cost of goods manufactured $45,756,000

Cost of goods sold $50,143,200

Gross Profit $30,856,800

Selling and Administrative Expenses $13,122,000

Operating Income $17,734,800

b. Joplin Industries Inc.

Variable Costing Income Statement

For the Month Ended June 30

Sales $81,000,000

Variable cost of goods sold $40,500,000

Manufacturing Margin $40,500,000

Selling and Administrative Expenses $12,150,000

Contribution Margin $28,350,000

Fixed cost

Manufacturing cost $8,856,000

Selling and Admin Expenses $972,000

Total Fixed cost $9,828,000

Operating Income $18,522,000

4 0

3 years ago

For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall

bezimeni [28]

Answer:

The income effect and substitution effect work in opposite directions and income effect is dominant.

Explanation:

In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.

The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.

In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.

A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.

8 0

3 years ago

Davidson Software Technologies believes in hiring only the best programmers in the industry. As a result, it uses a comprehensiv

Vladimir [108]

Answer:

The correct answer is C

Explanation:

HRM system is the system which is designed in order to automate the business process of human resource, compliance, transactions and payroll. This system allows the business to focus on the people through streamlining all the software workforce into the business intelligence solution.

Recruitment and selection is the procedure of identifying the requirement of job and defining the need of the position, advertising the position and selecting the appropriate person for the position.

Therefore, the recruitment and selection is the component of HRM system which uses the hiring procedure that comprise of testing and interviewing the professionals.

7 0

3 years ago

An effective strategy for protecting yourself against identity theft?

JulijaS [17]

Do not share your information. Identity theft is on the rise year after year. We carry our personal information in apps on our phones, on online accounts as well as when we check our credits on non-certified websites. Always use incognito mode when purchasing and never save your credit card or password to personal sites.

3 0

3 years ago