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Mekhanik [1.2K]
2 years ago
9

illustrate the effects on the accounts and financial statements of recording the following transcations. If no account or activi

ty is affected, select "no effect from the dropdown and leave the corresponding number entry box blank. a. sold merchandise for cash, $107500. The cost of the goods sold was $53,750
Business
1 answer:
jeyben [28]2 years ago
6 0

Answer:

Sale of Merchandise for Cash

Revenue (Shareholders Equity) = Increase $107500

Cash (Asset) = Increase $107500

Liabilities = No Effect

Cost of Goods Sold

Shareholders Equity = Decrease $ 53750

Inventory (Asset) = Decrease $53750

Liabilities = No Effect

Explanation:

Sale of Merchandise for Cash

Recognition of  Revenue increases Profit in Income Statement and consequently increases shareholders equity.

Assets of Cash are increasing to depict inflow of economic benefits

Cost of Goods Sold

Cost of Goods sold represent outflow of economic benefits

Assets of Inventory are decreasing

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Fenton Manufacturing Company at June 30: Cash in bank account $ 6,455 Inventory of postage stamps $ 74 Money market fund balance
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Answer:

$19,462

Explanation:

The computation of the cash and cash equivalent is shown below:

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3 years ago
A Japanese investor can earn a 1 percent annual interest rate in Japan or about 4.1 percent per year in the United States. If th
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Answer: 97.99

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The one-year forward rate that an investor would be indifferent between the U.S. and Japanese investments will be:

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2 years ago
The value-added is:
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Answer:

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