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
professor190 [17]
3 years ago
6

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.

  1. The issued shares of common stock increases Cash (Asset) by $181,000 and also increases Common stock (Equity) by the same amount.
  2. The bonds payable increases Liabilities by $54,000 and Cash by the same amount.
  3. 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.
  4. The receipt from customers increases Cash and Sales revenue, which ultimately impacts Retained earnings (Equity).
  5. The purchase of supplies on account means there would be an increase in Supplies (Asset) and increase in accounts payable (Liabilities).
  6. 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).
  7. Services performed on account increases Sales revenue (which invariably impacts Equity) and increases Accounts receivable (Asset).
  8. Payment of salaries is outflow of Cash (Asset reduced) and increase in Salaries expenses. This reduces the net income by $29,300.
  9. Dividend of $10,700 causes an outflow of Cash (Asset) and reduction in Retained earnings (Equity).
You might be interested in
The idea behind customer relationship management is to enhance customer satisfaction and stimulate long-term customer loyalty.
MatroZZZ [7]
B. True This will ensure that You enhance and make a good relationship so your on good terms and have a long term customer
4 0
3 years ago
Banks are a stabilizing force in our entire financial system. Discuss two of the three primary function of the banking system.
Illusion [34]

Answer: Banks transfer money from savers to borrowers by holding deposits and lending excess reserves. Banks also create money by making loans of excess reserves.

Explanation: Those are two primary functions.

7 0
3 years ago
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its emplo
Stells [14]

Answer:

  1. c. Any pattern, particularly with audience involvement
  2. a. Warm, pleasant, and open

Explanation:

As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.

The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.

5 0
3 years ago
The Canadian government decided to issue a consol (a bond with a never-ending interest payment and no maturity date). The bond w
zhenek [66]

Answer:

present value of perpetuity  = $1111.11

present value of perpetuity  = $588.23

if interest rate fall price go up and interest rate rise price go down

Explanation:

given data

bond pay = $50

solution

first we find present value of perpetuity for 6.5 % that is

present value of perpetuity = \frac{cash flow}{discount}     ..............1

present value of perpetuity =  \frac{50}{0.065}

present value of perpetuity  = $769.23

now  present value of perpetuity for 4.5%

so from equation 1 we get

present value of perpetuity =  \frac{50}{0.045}

present value of perpetuity  = $1111.11

and

now  present value of perpetuity for 8.5%

so from equation 1 we get

present value of perpetuity =  \frac{50}{0.085}

present value of perpetuity  = $588.23

so

here we know that current price of perpetuity & discount rate is inversely proportional

so current present value is find by divide cash flow by discount rate

here discount rate higher value of perpetuity

so if interest rate fall price go up and interest rate rise price go down

4 0
3 years ago
A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Determine th
sveticcg [70]

Answer:

325 units per month

Explanation:

Cumulative demand for next four months:

= 200 + 400 + 250 + 350

= 1,200

Total production requirement :

= Cumulative demand for next four months - Beginning inventory + Ending inventory

= 1,200 - 0 + 100

= 1,300

At level strategy, monthly production rate will be uniformly.

Therefore,

the monthly production rate will be as follows:

= 1,300 ÷ 4

= 325 units per month

8 0
3 years ago
Other questions:
  • A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units t
    12·1 answer
  • An economy is operating with output $300 billion above its natural level, and fiscal policymakers want to close this expansionar
    10·1 answer
  • This term refers to the length of a training session:
    13·1 answer
  • In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases
    6·1 answer
  • Three critical activities occur during group socialization that affect the productivity of teams, and they are:
    10·1 answer
  • Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $4
    10·1 answer
  • At $180, a firm can sell 18,100 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At t
    10·1 answer
  • Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes
    7·1 answer
  • ABC Company issues a 3-year bond with a $1,000 Face Value and a 5% Coupon Rate, with coupons paid once a year at the end of ever
    7·1 answer
  • Which of the following are advantages of accrual basis
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!