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Market equilibrium is defined as the point where _______________ . (Select all that apply.)

Mrrafil [7]

Quantity supplied equals to quantity demanded.

8 0

3 years ago

Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired

nordsb [41]

Answer:

treasury stock 1,645,600 debit

cash 1,645,600 credit

--to record he purchase of TS--

cash 925,000 debit

treasury stock 850,000 debit

additional paid-in TS 75,000 debit

-to record sale of TS above their cost--

cash 760,500 debit

additional paid-in TS 35,100 debit

Treasury Stock 795,600 credit

Explanation:

treasury stock cost:

24,200 shares x $68 each = 1,645,600

sale of TS

proceeds: 12,500 x $74 =925,000

cost: 12,500 x $68 = 850,000

additional paid-in TS 75,000

second sale of TS:

proceeds _ 11,700 x $65 760,500

Cost: 11,700 x $68 795,600

additional paid-in TS 35,100

6 0

3 years ago

Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro

cestrela7 [59]

Answer:

a. net income= understated, retained earnings= understated

Explanation:

In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if ending inventory is understated, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to net income and gross profit being understated.

Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.

4 0

3 years ago

When a company receives an interest-bearing note receivable, it will

matrenka [14]

Answer:

a. debit Notes Receivable for the face value of the note

Explanation:

The note will generate interest over time, but at the moment of receiving the note, it hasn't accrued any interest, so we have to only record for the value of the note today.

Also this note represent the right to claim cash from the person who sign the note, so it is an asset for the company.

Asset increase from debit side, so the Note Receivable will be debited.

3 0

3 years ago

The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc.

Sidana [21]

Answer:

Machine B has a higher NPV therefore should be produced

Explanation:

The machine with the higher Net Present Value (NPV) should be produced .

NPV of Machine A

PV of cash flow

PV of annual profit = A × (1- (1+r)^*(-n)/r

A- 92,000, n- 11, r- 12%

PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32

PV of salvage value = 13,000× 1.12^(-11)= 3737.189

NPV = 546268.320 + 3737.189 -250,000 = $300,005.50

NPV of Machine B

A- 103,00, n- 19, r- 12%

PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165

Pv of salvage value = 26000× 1.12^(-19)= 3018.776199

NPV =758675.0165 + 3018.77 -460,000 = $301,693.79

Machine B has a higher NPV , therefore should be produced.

6 0

3 years ago

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