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
Lelechka [254]
3 years ago
9

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Asset

s increase $4,500 and liabilities decrease $4,500. One asset increases $4,500 and another asset decreases $4,500. Equity decreases $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Assets increase $4,500 and liabilities increase $4,500.
Business
1 answer:
Firdavs [7]3 years ago
8 0

Answer: Assets increase $4,500 and liabilities increase $4,500.

Explanation:

An asset are the properties which a business or an organization owns. An asset possess an economic value.

Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.

You might be interested in
Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square
Phantasy [73]

Answer:

Direct Materials    = $969,000

Direct Labor     = $699,400

Factory overhead    = $214,600

WIP       = $2,200

Finished Goods            = ($2,000)

Cost of Goods      = $1,883,200

Explanation:

Direct Materials  = $969,000

403,500 x 6 square yards = 2,421,000

2,421,000 + (40,400 - 38,900)  = 2,422,500

2,422,500 x 0.40 per square yard = $969,000

Direct Labor  = $699,400

403,500 personal journals

403,500 * 8 minutes  = 3,228,000 minutes

3,228,000/60 minutes  = 53,800

53,800 x $13.00 = $699,400

Prepare a cost of goods sold budget for Daybook Inc. using the information above

Direct Materials        = $969,000

Direct Labor         = $699,400

Factory overhead        = $214,600

WIP  ($16,500 - $14,300)     = $2,200

Finished Goods ($28,000 - $30,000)    = ($2,000)

Cost of Goods         = $1,883,200

6 0
3 years ago
The total amount that you owe for income tax in one year is your tax
Keith_Richards [23]
Yes,yes, it is.

making it longer so i can answer
4 0
3 years ago
Which living expense needs to be included in the budget of someone renting an apartment?.
scoundrel [369]

Answer:

insurance

Explanation:

a living expense that should be included in the budget when someone is going to rent an apartment should be the insurance

hope this helps

6 0
2 years ago
Should students have more P.E time?
Brut [27]
I feel like we should but your teachers want more education time at my school we have 40 minutes of P.E 
4 0
3 years ago
Read 2 more answers
The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred
iris [78.8K]

The weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

<h3>What is the weighted average cost of capital?</h3>

The weighted average cost of capital computes a firm's cost of capital based on the firm's average cost of capital from all sources: common stock, preferred stock, bonds, and other forms of debt.

The weight of the common stock can be determined by dividing the common stock market value by the total capitalization from all sources.

<h3>Data and Calculations:</h3>

Outstanding:

Bonds payable = $1,590,000 (1,500 x $1,060)

Preferred stock = $160,000 (5,000 x $32)

Common stock = $936,000 (36,000 x $26)

Total debts and equity = $2,686,000

Weight of common stock = 35% ($936,000/$2,686,000 x 100)

Thus, the weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

Learn more about the weighted average cost of capital at brainly.com/question/14703616

4 0
2 years ago
Other questions:
  • If a check correctly written and paid by the bank for $936 is incorrectly recorded in the company's books for $963, how should t
    9·1 answer
  • Janice bought her house in 2008 for $395,000. since then, she has deducted $70,000 in depreciation associated with her home offi
    14·2 answers
  • Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher want
    14·1 answer
  • The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at $360 $ 7,200 Aug. 13 Purch
    7·1 answer
  • Ignatius Inc., a lock manufacturer, is a part of a national program in which employers encourage disabled workers to work with e
    12·1 answer
  • Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be r
    8·1 answer
  • FIRST ANSWER GETS BRAINLIEST!
    13·1 answer
  • Burns Medicine Shop developed a website where customers could ask the pharmacists questions and could refill prescriptions onlin
    7·1 answer
  • Teresa is considering purchasing a home for $220,000 by taking out a loan with an interest rate of 4.3% for 30 years. What would
    13·1 answer
  • Since stocks can be traded online, which purpose is best served by markets?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!