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3 years ago

During 2017, its first year of operations as a delivery service, Concord Corporation entered into the following transactions.

Business

1 answer:

AleksandrR [38]3 years ago

4 0

Answer:

1. Issued shares of common stock to investors in exchange for $181,000 in cash - Asset (increase) = Liabilities (NA) + Equity (increase)

2. Borrowed $54,000 by issuing bonds - Asset (increase) = Liabilities (increase) + Equity (NA)

3. Purchased delivery trucks for $60,000 cash - Asset (No effect) = Liabilities (NA) + Equity (NA)

4. Received $17,000 from customers for services performed - Asset (increase) = Liabilities (NA) + Equity (increase)

5. Purchased supplies for $5,800 on account - Asset (increase) = Liabilities (increase) + Equity (NA)

6. Paid rent of $4,800 - Asset (decrease) = Liabilities (NA) + Equity (decrease)

7. Performed services on account for $11,000 - Asset (increase) = Liabilities (NA) + Equity (increase)

8. Paid salaries of $29,300 - Asset (decrease) = Liabilities (NA) + Equity (decrease)

9. Paid a dividend of $10,700 to shareholders - Asset (decrease) = Liabilities (NA) + Equity (decrease)

Explanation:

An accounting equation is usually expressed by this formula: Asset = Liabilities + Equity.

The issued shares of common stock increases Cash (Asset) by $181,000 and also increases Common stock (Equity) by the same amount.
The bonds payable increases Liabilities by $54,000 and Cash by the same amount.
The purchase of delivery truck has no effect since there is decrease in Cash and increase in Fixed asset by the same amount - both transactions affect asset.
The receipt from customers increases Cash and Sales revenue, which ultimately impacts Retained earnings (Equity).
The purchase of supplies on account means there would be an increase in Supplies (Asset) and increase in accounts payable (Liabilities).
If the rent paid is not a prepayment, it would be a reduction in Cash (Asset) and increase in Operating expenses (which ultimately affects Equity).
Services performed on account increases Sales revenue (which invariably impacts Equity) and increases Accounts receivable (Asset).
Payment of salaries is outflow of Cash (Asset reduced) and increase in Salaries expenses. This reduces the net income by $29,300.
Dividend of $10,700 causes an outflow of Cash (Asset) and reduction in Retained earnings (Equity).

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Answer:

The contract would be described as International Contract.

Explanation:

International Contracts: International contracts refers to a legally binding agreement between parties based in different countries, in which they are obligated to do or not do certain things. International contracts may be written in a formal way such as the example of Frank contracting an Indian television provider.

Consequently, Frank and the Indian television provider having entered into a contract, are governed by international contract law unless they agree to abide by the laws of one of the US and India.

Moreover, International sales contracts are governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG) from 1980.

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3 years ago

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frozen [14]

Power given to people because of their superior knowledge about the work is B. expert power.
Experts are people who have superior knowledge of a subject when compared to other people. So if someone thinks that your knowledge about something is greater than that of someone else's, your boss may give you more power than other employees.

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3 years ago

In a cap-and-trade system, ______ set(s) a regulatory cap (limit) on emissions and issue(s) pollution permits, and ______ can bu

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2 years ago

A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis poi

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Answer:

8.53 years

Explanation:

Calculation for the duration of the bond

The first step is to calculate for Change in Bond Price

Change in Bond Price = -(30)/1,170

Change in Bond Price = -0.0256×100

Change in Bond Price =-2.56%

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4 years ago

During 2021, Blossom Company purchased the net assets of Ayayai Corporation for $2178000. On the date of the transaction, Ayayai

Evgesh-ka [11]

Answer:

When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.

the net fair market value of assets = $1,069,200 + $2,494,800 - $594,000 = $2,970,000

gain = fair market value - purchase price = $2,970,000 - $2,178,000 = $792,000

Another way to refer to this type of situation is a bargain purchase.

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3 years ago