1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klasskru [66]
3 years ago
8

Based on the following information, determine the amount of equipment on the balance sheet. Total liabilities and owner's equity

equals $44,750; total current assets equals $19,800; land equals $15,000; and accumulated depreciation—equipment equals $1,550.
Business
2 answers:
hammer [34]3 years ago
6 0

Answer:

$9,950

Explanation:

The amount of equipment shall be determined through accounting equation which is given as follows:

Total Assets=Total liabilities+Total equity

Total assets=Current+Non current assets

Current assets+Non current assets=Total liabilities+Total equity

Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment

Current assets+Cost of land+Cost of equipment-accumulated depreciation on equipment=Total liabilities+Total equity

Applying given data in the question to the above equation

$19,800+$15,000+Cost of equipment-$1,550=$44,750

$33,250+Cost of equipment=$44,750

Cost of equipment=$44,750-$33,250=$11,500

Amount of equipment on balance sheet=$11,500-$1,550=$9,950

Juli2301 [7.4K]3 years ago
6 0

Answer:

$11,500

Explanation:

the basic accounting equation:

assets = liabilities + shareholders' equity

liabilities + shareholders' equity = $44,750, so assets = $44,750

equipment account = total assets - current assets - land + accumulated depreciation

equipment account = $44,750 - $19,800 - $15,000 + $1,550 = $11,500

Accumulated depreciation is a contra-asset account that lowers the current value of the asset (in this case equipment) and is also included in the balance sheet with a credit balance.

You might be interested in
It is important to manage customer relationships because customers provide a great deal of value to the company if they remain c
qwelly [4]

Answer:

Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.

Explanation:

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.

Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.

7 0
3 years ago
Listening well is an important skill that falls under what skill category?
olchik [2.2K]

Answer:

a.

Explanation:

3 0
3 years ago
Management can make any form of distribution to the firm’s shareholders using the company’s free cash flow (FCF). The underlying
vovikov84 [41]

Answer:

A good use of free cash flow is to Invest in nonoperating assets

Explanation:

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.

If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.

A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)

3 0
3 years ago
Novak Corporation is preparing its 2017 statement of cash flows, using the indirect method. Presented below is a list of items t
wariber [46]

Answer: Please see explanation for answer

Explanation:

Purchase of land and build ===--Cash payment in investing section

Decrease in accounts receivables-----Added to net income in the operating section

Issuance of stock-----Cash receipt in financing section

Depreciation expense-----Added to net income in the operating section

Sale of land at book value-------Cash receipt in investing section

Sale of land at a gain--------Cash receipt in investing section AND deducted from net income in the operating section

Payment of dividends-------Cash payment in the financing section

Increase in accounts receivables-------Deducted from net income in operating section

Purchase of available-for-sale investment-----Cash payment in investing section

Increase in accounts payable-----Added to net income in operating section

Decrease in accounts payable-------Deducted from net income in operating section

Loan from bank by signing note------Cash receipt in financing section

Purchase of equipment using a note-----Non-cash investing and financing activity

Increase in inventory-----Deducted from net income in operating section

Issuance of bonds-----Cash receipt in financing section

Redemption of bonds payable------Cash payment in financing section

Sale of equipment at a loss---Cash receipt in investing section AND added to net income in the operating section

Purchase of treasury stock----Cash payment in financing section

or using the code, we have

a) Purchase of land and building - P-I

b) Decrease in accounts receivable - A

c) Issuance of stock - R-F

d) Depreciation expense - A

e) Sale of land at book value - R-I

f) Sale of land at a gain. - R-I and D

g) Payment of dividends - P-F

h) Increase in accounts receivable - D

i) Purchase of available-for-sale investment - P-I

j) Increase in accounts payable - A

k) Decrease in accounts payable - D

l) Loan from bank by signing note - R-F

m) Purchase of equipment using a note - N

n) Increase in inventory - D

o) Issuance of bonds. - R-F

p) Retirement of bonds payable - P-F

7 0
3 years ago
Read 2 more answers
The key decisions and plans in corporate strategy address: What business are we in and how will we allocate resources among thes
serious [3.7K]
This is A. true i think
4 0
3 years ago
Other questions:
  • Wel me following questions. Be sure to explain your thinking.
    12·1 answer
  • A ________ is best described as a voluntary arrangement between firms that involves the sharing of knowledge, resources, and cap
    8·2 answers
  • Your organization is creating a site-to-site vpn tunnel between the main business location and a remote office. what can they us
    13·1 answer
  • Both Apple and Google sell electronic devices, and each of these companies has a different product mix.
    13·1 answer
  • In a fine dining restaurant, which of the guests at a table should the staff serve first?
    6·2 answers
  • The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year fo
    12·1 answer
  • Which of the following is a correct statement regarding the standard unmodified opinion audit report? Group of answer choices Th
    7·1 answer
  • Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.50. At the end of year 1
    12·1 answer
  • Fast Freight, an interstate trucking company, has had to raise price three times in the past year, significantly reducing sales
    15·1 answer
  • Assume that you are a freshman and live in your school's dormitory. The agreement you've signed with the school states that you
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!