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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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The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c

lukranit [14]

Answer:

Australia has purchasing-power parity with the U.S.

Explanation:

A basket of goods costs $800 in the US. The same basket costs 1,000 euros in France and 960 Australian dollars in Australia.

The nominal exchange rate for euros is .80 euros per U.S. dollar and for Australian dollars, it is 1.2 Australian dollars per U.S. dollar.

The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.

This method compares the economic productivity and standard of living in two countries.

Converting the value of basket in France into US dollars,

= $\frac{1,000}{0.80}$

= $1,250

Converting the value of basket in Australia into US dollars,

= $\frac{960}{1.2}$

= $800

The cost of the basket of goods is same in Australia. This indicates that Australia has purchasing-power parity with the U.S.

3 0

3 years ago

The project is expected to generate the following net cash flows:

iVinArrow [24]

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

Hence x=irr=5.01%(Approx).

8 0

3 years ago

Shareholders in Frontier Communications were not pleased to learn that the company's market share had changed from 40 to 21 perc

Alja [10]

Answer:

$47.5\%$

Explanation:

Given: The company's market share had changed from 40 to 21 percentage points.

To find: percent change in market share

Solution:

Change in percentage of company's market share $=40-21=19$

Percent change in market share = (Change in percentage of company's market share ÷ 40) × 100

$=\frac{19}{40}(100)=47.5\%$

6 0

3 years ago

On October 1, 20X6, Susan Thompson opened Thompson Decorating Services, a sole proprietorship. Susan began operations with $50,0

galben [10]

Answer: income statement: Net income $5,100, Statement of owners Equity :Total $35,100, Balance sheet : Total Liabilities $53,200, Total Asset $53,200

Explanation:

Thompson Decoration Services

Income Statement for the month ended 31 st October 20X6

Revenue. 18,300

Less Expenses

Salaries. 8,700

Advertising 2,500

Less: outstanding 700

-------

1,800

Taxes. 150

Postage. 1,800

Utilities. 100

Interest. 450

Miscellaneous. 200

------------

13,200

--------------

Net income. 5,100

-----------------

Statement of owners Equity for the month ended 31st October 20X6

Common Stock. Paid in capital. Retained Earnings Treasury stock Total

Balance Oct 1. 30,000. 30,000

Issued share for cash. - - - - -

Purchase of treasury stock - - - - -

Net income. - - 5,100. 5,100

Cash dividend. - - - - -

Stock dividend. - - - - -

------ ------ --------- ---------- -------------

Balance on Oct 31. - - 5,100 - 35,100

---------- -------- -------- ---------- --------------

Thompson Decoration Service

Balance sheet for the month ended 31st October 20X6

Current Asset

Debtors. 4,100

Account Receivable 14,200

-----------

Total Current Asset. 18,300

Fixed Asset

Van. 16,000

Office Equipment. 4,000

Furnishing. 14,900

-----------

Total Fixed Asset. 34,900

--------------

Total Asset. 53,200

---------------

Long term Liabilities

Capital. 30,000

Add: Net income 5,100

----------

35,100

Less: Drawing. 5,500

-----------

29,600

Loan. 20,000

-----------

Total Long term Liabilities 49,600

Current Liabilities

Outstanding 2,800

Interest. 450

Taxes. 150

Miscellaneous 200

--------------

Total Current Liabilities 3,600

--------------

Total Liabilities. 53,200

----------------

4 0

3 years ago

Read 2 more answers

If a buyer has a critical or more important use of the product then the inelasticity of the demand increases. what factor is aff

Ghella [55]

If a buyer has a critical or more important use of the product then the inelasticity of the demand increases, then it is the importance of the product affecting elasticity.

A product is considered inelastic if its demand remains static even if there is a significant price change. It is generally the basic necessity product that are considered as inelastic product. Inelastic demand of the product ensures the adequate supply of goods. In inelastic demand case the quantity demanded is same despite the change in price and the demand curve is graphed out as a vertical line. These goods have no substitutes ensuring the quantity demanded remains unaffected.

In case of fall in the price, the demand remains same, generating less revenue. On the other hand, if price hikes, the business earns significant profit.

To learn more about inelastic demand click here:

brainly.com/question/13572905

#SPJ4

3 0

1 year ago