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3 years ago

Oaktree Company purchased new equipment and made the following expenditures:

Business

1 answer:

I am Lyosha [343]3 years ago

7 0

Answer:

The Journal entries are as follows:

(1)

Equipment A/c Dr. $71,890

To cash $3,790

To accounts payable $68,100

(To record the purchase of equipment)

Workings:

Equipment value:

= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment

= 64,000 +4,100 + 890 + 2,900

= $71,890

Cash Paid:

= Freight charges for shipment of equipment + Installation of equipment

= 890 + 2,900

= $3,790

Accounts payable = Purchase price + Sales tax

= 64,000 +4,100

= $68,100

(2)

Prepaid Insurance A/c Dr. $1,090

To cash A/c $1,090

(To record any expenditures not capitalized in the purchase of equipment)

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The answer is net income
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4 years ago

An employee has gross earnings of $1,200 and withholdings of $91.80 for social security and medicare taxes and $120 for income t

satela [25.4K]

Given the following parameters:

The employer pays the employee (gross earnings) – $1,200

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3 years ago

Gross profit is equal to:

ehidna [41]

Answer:

The correct answer is letter "A": sales minus cost of goods sold.

Explanation:

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3 years ago

In which phase of the strategic marketing planning process does the firm decide what level of commitment to its ethical policies

jonny [76]

Answer:

The answer is planning

Explanation:

This process involves clarifying the kind of strategic objectives an organization would like to achieve and how this is to be done

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3 years ago

A company with $60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this

dimaraw [331]

Answer:

Increase and remain the same respectively

Explanation:

Given the above information, we know that current ratio is computed as;

Current ratio = Current assets ÷ Current liabilities

Current ratio = $60,000 ÷ $34,000

Current ratio = 1: 1.76

Working capital is computed as;

= Current asset - Current liabilities

= $60,000 - $34,000

= $26,000

As a result of the above, the current ratio increased because of the reduction in the current liabilities value while the working capital remains the same.

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3 years ago