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3 years ago

Green Caterpillar Garden Supplies Inc.

Business

1 answer:

brilliants [131]3 years ago

8 0

Answer:

This statement is TRUE, because:

C) Green Caterpillar’s retained earnings account increased between the end of Years 1 and 2.

Explanation:

The only way to determine if a company was profitable is through the Net Profit in the Income Statement , if it was profitable it means that the result were allocated in Retained Earnings in the Balance Sheets because this account only growth with the results of the income statement, in this case the increase in the account was for $394.

Option A) is not true because the increase in total assets not only means a company´s positive results it could be because of the company increment the Accounts Receivable term and the Inventories which no means a positive result.

Option (B) in the case of cash increases it could be due to an increase in the total debt of the company as it's indicated in the Long Term Debt and because of new stock issues.

Both of this option are complementary to the option selected but this options alone doesn't indicate a profitabilty year.

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N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resol

erma4kov [3.2K]

Answer:

Credit Treasury Stock $20,000

Explanation:

When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i.e. in this case we acquire the treasury stock at a price of $20.

Cash (1,000 * 12) 12,000

Additional Paid in Capital 8,000

Treasury Stock (1,000 * 20) 20,000

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3 years ago

What is a career help please I’m timed

Georgia [21]

Answer:

an occupation undertaken for a significant period of a person's life and with opportunities for progress.

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2 years ago

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On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv

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Answer:

B) $300,000.

Explanation:

Since Grade Company cannot exercise any real influence on Medium Company, it cannot value its investment using the equity method and must record its investment at fair market value. This means that the investment account must equal the market value of the 20,000 stocks, which in this case is $300,000. Grade Company should also record dividends received as revenue from investing activities.

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3 years ago

Incident managers begin planning for the demobilization process when:

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Incident managers begin planning for the demobilization process when B. INCIDENT ACTIVITIES SHIFT FROM RESPONSE TO RECOVERY.

Demobilization occurs when the incident objectives have been met.

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3 years ago

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Deffense [45]

Answer:

Babcock Company

Journal Entries:

Nov. 3:

Debit Inventory $63,750

Credit Accounts Payable (Moonlight Co.) $63,750

To record the purchase of merchandise, terms FOB, destination, 2/10, n/30.

Nov. 4:

Debit Cash $37,680

Credit Sales Revenue $37,680

To record the sale of merchandise for cash.

Nov. 4:

Debit Cost of Goods Sold $22,600

Credit Inventory $22,600

To record the cost of merchandise sold.

Nov. 5:

Debit Inventory $47,500

Credit Prepaid Freight-in $810

Credit Accounts Payable (Papoose Creek Co.) $46,690

To record the purchase of merchandise, terms, FOB shipping point, 2/10, n/30

Nov. 6:

Debit Accounts Payable (Moonlight Co.) $13,500

Credit Inventory $13,500

To record the return of merchandise.

Nov. 8:

Debit Accounts Receivable (Quinn Co.) $15,600

Credit Sales Revenue $15,600

To record the sale of merchandise on account, terms n/15.

Nov. 8:

Debit Cost of Goods Sold $9,400

Credit Inventory $9,400

To record the cost of merchandise sold.

Nov. 13:

Debit Accounts Payable (Moonlight Co.) $50,250

Credit Cash Discount $1,005

Credit Cash $49,245

To record the payment on account.

Nov. 14:

Debit VISA account $236,000

Credit Sales Revenue $236,000

To record the sale of merchandise on VISA.

Nov. 14:

Debit Cost of Goods Sold $140,000

Credit Inventory $140,000

To record the cost of merchandise sold.

Nov. 15:

Debit Accounts Payable (Papoose Creek Co.) $46,690

Credit Cash Discount $934

Credit Cash $45,756

To record the payment on account.

Nov. 23:

Debit Cash $15,600

Credit Accounts Receivable (Quinn Co.) $15,600

To record the receipt of cash on account.

Nov. 24:

Debit Accounts Receivable (Rabel Co.) $56,900

Credit Sales Revenue $56,900

To record the sale of merchandise on account, terms 1/10, n/30.

Nov. 24:

Debit Cost of Goods Sold $34,000

Credit Inventory $34,000

To record the cost of goods sold.

Nov. 28:

Debit VISA Service Fee $3,540

Credit Cash $3,540

To record the payment of VISA service Fee.

Nov. 30:

Debit Sales Returns $6,000

Credit Cash $6,000

To record the cash refund for returned merchandise.

Nov. 30:

Debit Inventory $3,300

Credit Cost of Goods Sold $3,300

To record the cost of inventory returned.

Explanation:

The above journal entries initially record the transactions of Babcock Company in November. Here, the accounts involved in each transaction are identified, debited, and credited as the case may be.

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3 years ago