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Olenka [21]
3 years ago
10

Using the accounting equation to analyze transactionsElaine’s Inflatables earns service revenue by providing party planning serv

ices and inflatable playscapes. Elaine’s Inflatables is organized as a corporation. During the past month, Elaine’s Inflatables had the following transactions:Received contributions of $10,000 in exchange for common stock.Purchased equipment for $5,000 on account.Paid $400 for office supplies.Earned and received $2,500 cash for service revenue.Paid $400 for wages to employees.Cash dividends of $1,000 were paid to stockholders.Earned $1,000 for services provided. The customer has not yet paid.Paid $1,000 for rent.Received a bill for $250 for the monthly utilities. The bill has not yet been paid.Indicate the effects of the business transactions on the accounting equation for Elaine’s Inflatable. Transaction (a) is answered as a guide.Increase asset,(Cash); Increase Equity (Common Stock)
Business
1 answer:
xenn [34]3 years ago
6 0

Answer:

Elaine's Inflatables

The effects of the business transactions on the accounting equation for Elaine’s Inflatable.

a. Increase asset,(Cash); Increase Equity (Common Stock) by $10,000

b. Increase asset, (Equipment); Increase Liabilities (Accounts Payable) $5,000

c. Increase asset, (Supplies); Decrease asset, (Cash) $400

d. Increase asset, (Cash); Increase Equity (Retained Earnings) $2,500

e. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $400

f. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $1,000

g. Increase asset, (Accounts Receivable); Increase Equity (Retained Earnings) $1,000

h. Decrease asset, (Cash); Decrease Equity (Retained Earnings) $1,000

i. Increase Liabilities (Utilities Payable); Decrease Equity (Retained Earnings) $250

Explanation:

To explain the accounting equation in action, Elaine's Inflatable business transactions will always show the effects on the accounting equation.  This equation states that Assets are always equal to Liabilities Plus Equity with every given transaction.  This equation implies that two or more accounts are impacted by each transaction and the effect is always to keep the accounting equation in balance.  For example, the payment of rent of $1,000 decreases the asset (Cash) and decreases the equity (Retained Earnings) side of the accounting equation by the same amount.

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Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)
ruslelena [56]

Answer:

Please see below

Explanation:

1. Calculate the pension expense for 2021.

($ millions)

Service cost. $50

Interest cost. $30

Expected return on the plan assets

(1,300 × 6%). ($78)

Amortization of prior service cost $

Amortization of net gain or loss - AOCI $

Pension expense $2

2. Journal expense to record pension expense, gains or losses, prior service cost, funding and payment of benefits for 2021.

1.

Pension expense. Dr $2

Plan assets [expected return on assets] Dr $78

To PBO (50 + 30) Cr $80

(To record the pension expense)

2.

Prior service cost - OCI Dr $18

To PBO Cr $18

(To record the prior service cost)

3.

PBO Dr $36

To Gain - OCI Cr $36

(To record the gain from change in actuarial assumption)

4.

Loss- OCI [1,300 × 6%] - ($23). Dr $55

To Plan assets Cr. $55

(To record the gain or loss on assets)

5.

Plan assets. Dr $40

To Cash Cr. $40

(To record the funding)

6.

PBO Dr $46

To Plan assets. Cr 46

(To record the retiree benefits)

3. What amount will electronic distribution report in its 2021 balance sheet as a net pension asset or net pension liability.

PBO balance, Jan 1 $530

Service cost. $50

Interest cost. $30

Gain from change in actuarial assumption. ($36)

Prior service cost(New). $18

Benefit paid ($46)

PBO balance, December 31. $546

Plan assets balance, Jan 1. $300

Actual return on plan assets $23

Contributions $40

Benefits paid ($46)

Plan assets balance, December 31 $317

PBO balance, December 31 $546

Plan assets balance, December 31 $317

Net pension liability. $229

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D.) I think I hope I helped
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If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other posit
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Answer:

false

Explanation:

Barcelona has a network structure because it works with staffing agencies to fill many vacant positions.

When a company has a network structure, it works with other companies in order to produce a good or service (outsourcing). In this case, Barcelona outsources some of its human resources functions to other companies.

7 0
3 years ago
The Reynolds Corporation buys from its suppliers on terms of 3/13, net 35. Reynolds has not been utilizing the discounts offered
grin007 [14]

Answer:

Explanation:

A)

cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1

cost of not taking a cash discount = 66.5%

B)

Effective rate of interest if the company borrows from the bank = (17/(100-12))

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3 years ago
Juniper Co uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9750 of me
KatRina [158]

Answer:

D) Debit Accounts Payable $1500; Credit Merchandise Inventory $1500

Explanation:

The journal entry to record the merchandise return is shown below:

Account payable A/c Dr $1,500

                To Merchandise inventory A/c $1,500

(Being returned inventory is recorded)

For recording the returned inventory we debited the account payable and credited the merchandise inventory account so that the proper posting could be done

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