Answer:
d. It would increase liabilities by $600
Explanation:
Supplies are part of inventory, and when inventory is purchased it increases assets.
But is it purchased against cash then there is no change as assets in the form of cash is reduced by same.
Further, if these are purchased on credit then the balance of liabilities increases as the increase in liabilities and increase in assets keep the balance sheet equation matching.
Thus, purchasing on credit will increase the liabilities.
Answer:
(a) 10.4%; 16.73%
(b) 6.33%
Explanation:
Given that,
Wages paid to the workers in 2016 = $25 per hour
Price level in 2016 = 241
Wages paid to the workers in 2017 = $41 per hour
Price level in 2017 = 245
Real wage rate in 2016:
= (Nominal wages ÷ Price level) × 100
= ($25 ÷ 241) × 100
= 0.104 × 100
= 10.4%
Real wage rate in 2017:
= (Nominal wages ÷ Price level) × 100
= ($41 ÷ 245) × 100
= 0.1673 × 100
= 16.73%
Therefore, the real wage increase received by these workers in 2017 is calculated as follows:
= Real wage rate in 2017 - Real wage rate in 2016
= 16.73% - 10.4%
= 6.33%
Hence, these workers do get a raise between the two years.
Answer:
Option C is correct
Explanation:
The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000
The discount on bonds payable=Face value-cash proceeds
The discount on bonds payable=$1,000,000-$960,000=$40,000
The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively
Answer:
Answers explained below
Explanation:
1) The purpose of a bank reconciliation to compare the company's records to those of that of the Bank Statement, to see if there are any kind of difference between these two sets of records for ther cash transactions. The bank reconciliation process requires comparing the bank statement with Cash book records towards withdrawals, check payments, direct deposits received by bank, direct payments/charges by bank, cash deposits and financial transfers.
2) To avoid the theft of cash, the internal controls requires a through checks of the receipt and payments in the cash book must be compared with the cash receipts and cash payments by the bank in their bank statement.
3) The misappropriation of cash and showing the outstanding checks at the lower level will indicate that the cash generation by the property is less. It will disturb the valuation of the property by the potential investors through the cash generation method, which will result in loss / harm to Jones.
Answer and Explanation:
The computation is shown below:
1. Before computing the stockholder equity first we have to determine the total assets and the total liabilities which is shown below:
As we know that
Total Assets = Current Assets + Net Fixed Assets
= $2,090 + $9,830
= $11,920
Now
Total Liabilities = Current Liabilities + Long-term Debt
= $1,710 + $4,520
= $6,230
So,
Stockholders’ Equity = Total Assets - Total Liabilities
= $11,920 - $6,230
= $5,690
2. The net working capital is
Net Working Capital = Current Assets - Current Liabilities
= $2,090 - $1,710
= $380
