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3 years ago

1. Identify each account as an asset (A), liability (L), or equity (E).

Business

1 answer:

Novosadov [1.4K]3 years ago

5 0

Answer:

Interest Revenue: Income, Credit balance, credit increases the balance, debit reduces such balance

Accounts Payable: Liability, Credit balance, credit increases the balance, debit reduces such balance

Calhoun Capital: Equity, Credit balance, Credit increases the balance, debit reduces such balance

Office Supplies: Asset, Debit balance, Debit increases the balance, credit reduce such balance

Advertising Expense: Expense, Debit balance, debit increases the balance, credit reduces such balance

Unearned Revenue: Liability, Credit balance, credit increases the balance, debit reduces such balance

Prepaid Rent: Asset, Debit balance, Debit increases the balance, credit reduces such balance

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Suppose that you are in charge of an insurance company. Two kinds of people want insurance, healthy people who probably will not

mote1985 [20]

The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is e. You charge $3,000 and everyone buys insurance.

$3,000 will be affordable to both the healthy and the unhealthy. This amount of premium will enable both classes to buy insurance.

It will not benefit the company to charge:

$2,000 and enable everyone to buy insurance
$3,000 and enable only unhealthy people to get insurance
$1,000 so that only the healthy people to buy insurance
$1,000 because only healthy people buy insurance.

Thus, the insurance premium charged should be Option E.

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4 0

2 years ago

Explain SHOW WORK 16. On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. Alan made the

soldi70 [24.7K]

Answer:

c. Debit Notes Payable $9,000; debit Interest Expense $240; credit Cash $9,240.

Explanation:

Interest Expense = $9,000 x 0.08 x 120 / 360 = $240

6 0

4 years ago

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at December 31.

antiseptic1488 [7]

Answer:

a. Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to start the year. A re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end.

Step 1: $4,700 debit balance

Step 2: $900 debit balance

Step 3: $4,700 - $900 = $3,800

Dr Insurance expense 3,800

Cr Prepaid insurance 3,800

b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the start of the year. A review of insurance policies and payments shows $1,040 of insurance has expired by year-end.

Step 1: $5,890 debit balance

Step 2: $4,850 debit balance (= $5,890 - $1,040)

Step 3: $1,040

Dr Insurance expense 1,040

Cr Prepaid insurance 1,040

c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for 2 years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24,000.

Step 1: $24,000 debit balance

Step 2: $20,000 debit balance (= $24,000 - $4,000)

Step 3: ($24,000/24) x 4 = $4,000

Dr Rent expense 4,000

Cr Prepaid rent 4,000

8 0

4 years ago

What is the present value of $2,825 per year, at a discount rate of 7 percent, if the first payment is received 9 years from now

Alik [6]

7% of $2,825.00 is equal to $197.75. 22 minus 9 equals 13 years. 13 times $197.75 is equal to the present value $2,570.75.

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3 years ago

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the foll

VARVARA [1.3K]

Answer:

C. New medical evidence has been released that indicates a negative correlation between a person’s beef

Explanation:

The demand for a normal good reacts to price changes as per the law of demand. A reduction in price results in an increased demand for the normal good. If the consumer's income increase, the demand rises. Normal goods are contrasted by inferior goods whose demand reduces with an increase in consumer's income.

A reduction in equilibrium price and quantity for beef could be caused by an increase in the price of beef, reduced incomes, or negative news concerning beef in the market. From the option available, the news concerning the correlation between life expectancy and beef consumption is most likely to affect demand. As a normal good, the demand for beef will decrease because consumers will consider it a low-quality product.

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3 years ago

1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E).

1. Identify each account as an asset (A), liability (L), or equity (E).