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3 years ago

Which of the following is one effect of a purchase of $600 of supplies on credit? Select one:

Business

1 answer:

Norma-Jean [14]3 years ago

5 0

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.

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Wallendo Corporation issued 5,000 shares of its $1 par value common stock as a stock dividend when the shares were selling for $

ExtremeBDS [4]

Answer:

The answer id given below

Explanation:

Retained Earnings 5,000*10 Dr.$25,000

Capital 5,000*1 Cr.$5,000 Paid in Capital 5000*(10-1) Cr.$45,000

The retained earnings will be debited with market price of shares given as dividend.

8 0

3 years ago

CWN Company uses a job order costing system and last period incurred $70,000 of actual overhead and $100,000 of direct labor. CW

denis23 [38]

Answer:

85%

Explanation:

With regards to the above information, the predetermined over head is calculated as seen below.

Predetermined overhead = [(Estimated overhead / Expected labor cost) × 100]

Estimated overhead = $85,000

Expected labor cost = $100,000

Then,

Predetermined overhead = [($85,000 / $100,000) × 100]

Predetermined overhead = 0.85 × 100

Predetermined overhead = 85%

Therefore, the predetermined overhead rate for the next period should be 85%

7 0

2 years ago

Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang

anygoal [31]

Answer:

D. The minimum of the range

Explanation:

First, it is essential to note the accrual of loss contingency is accruable only if the amount is estimable to a reasonable extent and the loss is also probable. Wyatt Co's loss is actually both probable and reasonably estimated so it meets the two criteria.

Furthermore, since it is reasonable within a rang of outcomes, Accounting Standards Codification Topic 450 (of the Financial Accounting Standard Board) dictates the amount to be accrued should be the better estimate of all amounts within the range.

The standard further states that in a situation where a better estimate can not be determined among the other amounts within the range then the amount accrued should be the one at the range's low end or the minimum amount of the range.

All these criteria shows that Wyatt CO's loss should accrue the minimum amount in the range

6 0

2 years ago

15. The normal balance side of any expense account is (A) the debit side. (B) the credit side. (C) the right side. (D) either th

USPshnik [31]

Answer:

The answer is a the debit side

7 0

2 years ago

Increasing the amount of insurance coverage on your vehicle is part of which phase of risk management?

KATRIN_1 [288]

The phase of Identifying risks is when we increase the amount of insurance coverage on one's vehicle.

<h3>What is a Risk Management?</h3>

A Risk Management refers to the identification, analysis and response to risk factors that affects a business, entity etc

Thus, the increasing of the amount of insurance coverage is in the phase of Identifying risks because the its leads to coverage of identified additional risk on the vehicle.

Therefore, the Option D is correct.