Answer choice C. is the best one
Answer:
Debt to Equity Ratio = 0.86
Explanation:
Debt to Equity Ratio = Total Liabilities / Stockholder's Equity
Total Liabilities = $0.84 million
Stockholder's Equity = $0.98 million
Debt to Equity Ratio = $0.84 million / $0.98 million
Debt to Equity Ratio = 0.857143
Debt to Equity Ratio = 0.86
Answer:
first I will journalize the adjustments:
a. Received a $510 utility bill for electricity usage in July to be paid in August.
Dr Utilities expense 510
Cr Accounts payable 510
b. Owed wages to 15 employees who worked two days at $55 each per day at the end of July. The company will pay employees at the end of the first week of August.
Dr Wages expense 1,650
Cr Wages payable 1,650
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $660 for one full year of interest. No interest has been recorded yet.
Dr Interest receivable 660
Cr Interest revenue 660
effects on the accounting equation:
Assets = Liabilities + Equity
a. 0 510 -510
b. 0 1,650 -1,650
<u>c. 660 0 660</u>
660 2,160 -1,500
Revenue - Expenses = Net income Cash flow
a. 0 510 -510 0 OA
b. 0 1,650 -1,650 0 OA
<u>c. 660 0 660 0 OA</u>
660 2,160 -1,500 0 NC
It is difficult to compare relative job growth for different-sized
businesses because it is hard to determine the cutoff point at which a small
business becomes a large business. It is not easy to know the comparative job development
amongst businesses of different sizes. There are not the same parameters leading
the size of a small business versus a big business. Moreover, there is no defined
point where such a variation can be clearly identified.
