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
anygoal [31]
3 years ago
5

The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial bal

ance in good form. Then answer questions 7 - 10. Cash $1,370 Benson, Withdrawals $ 500 Accounts Payable 770 Accounts Receivable 1,600 Office Equipment 900 Service Fees 2,730 Benson, Capital 1,500 Salaries Expense 630 9. The Account Payable account has which of the following balances? Question 9 options: Debit balance of 2730 Credit balance of $2730 Debit balance of $770 Credit balance of $770
Business
1 answer:
Katyanochek1 [597]3 years ago
6 0

<u>Solution and explanantion</u>

<u>Answer for Q7</u> - Debit balance of $1,370

Cash has a debit normal balance.

Practically speaking the cash balance will be credit only if cash is negative which can never happen.

<u>Answer for Q8</u> - Credit balance of $1500

All equity accounts have credit normal balance except withdrawal or dividend accounts.

<u>Answer for Q9</u> - Credit balance of $770

All liabilities have credit normal balance.

<u>Answer for Q10 </u>- $5000

<u>Working </u>

                                    Trial balance

                                         Debit                         Credit

Cash                                $1,370.00  

Accounts receivable          $ 1,600.00  

Office equipment                  $ 900.00  

Benson withdrawal         $ 500.00  

Benson capital                                                  $   1,500.00

Accounts payable                                                   $   770.00

Salaries expense                       $ 630.00  

Service revenue                                                     $  2,730.00

                                              $  5,000.00            $  5,000.00

You might be interested in
On April 1, 2013, Four Seasons Landscaping, LLC purchased new lawn mowers for $70,000 in cash (total cost). They have a useful l
creativ13 [48]

Answer:

Please see the calculation explanation below and the depreciation expense chart for all methods is attached.

Explanation:

1. STRAIGHT-LINE DEPRECIATION METHOD:

<em>Depreciation Expense = (Total Cost - Residual Value) / Useful Life </em>

Depreciation Expense = ($70,000 - $10,000) / 3 years

Depreciation Expense = $60,000 / 3 years

Depreciation Expense = $20,000 per year

2. DOUBLE DECLINING BALANCE DEPRECIATION METHOD:

<em>Depreciation Expense Rate = (100% / Useful Life) x 2 </em>

Depreciation Expense Rate = (100% / 3) x 2

Depreciation Expense Rate = 66.67%

<em>2013: </em>

Depreciation Expense = $70,000 x 66.67% = $46,667

<em>2014: </em>

Depreciation Expense = ($70,000 - $46,667) x 66.67% = $15,556

Since the residual value is $10,000 and as per Double Declining Balance Method, the point at which Book Value is equal to the residual value, no depreciation is taken.

<em>Depreciation Expense = (Total Cost - Residual Value) - (Accumulated Depreciation) </em>

Depreciation Expense = ($70,000 - $10,000) - ($46,667)  

Depreciation Expense = $13,333

<em>2015: </em>

No Depreciation Expense for year 3, as Book value is already equal to residual value in year 2.

3. PER HOUR DEPRECIATION METHOD:

<em>2013:</em><em> </em>

<em>Depreciation Cost per hour = (Engine Hours in 2013 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (500 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $25,000

<em>2014: </em>

<em>Depreciation Cost per hour = (Engine Hours in 2014 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (400 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $20,000

<em>2015: </em>

<em>Depreciation Cost per hour = (Engine Hours in 2015 / Total Engine Hours) x (Total Cost - Residual Value) </em>

Depreciation Cost per hour = (300 / 1,200) x ($70,000 - $10,000)

Depreciation Cost per hour = $15,000

6 0
3 years ago
Choose and describe a business that you would expect to have highly liquid assets and share a photo of that business (or company
Slav-nsk [51]

Answer:

I have chosen Apple Inc.

Explanation:

Apple Inc is a tech giant and manufactures innovative and most differentiated telecommunication products, music products, computer products, application services, etc which is highly valued among its customers. That's the reason why Apple is one of the most highly valued company in the world with almost $137 billion cash balance. This cash balance has been increased by $20 billion in the last three years which shows its higher profitability and that its inventory is highly liquid asset because it is quickly converted into cash. Furthermore, the greater demand of product and customer loyalty has strengthen its position all because of unmatched innovation introduced in each of its product every year. The greater cash balance shows that the company has greater sales and has higher profit margin on its unmatched product.

The picture of Apple headquarter and of its logo are given below:

6 0
3 years ago
Why are conflicts of interests a problem in business?
Nesterboy [21]
<span>Conflict of interest is a very big issue when it comes to business because it may cause wrong decisions. For example, you are business partners and each one of you have different interests and ideas, thus you will not be able to formulate better ideas and create a good business product. It is very important that in a business, you and your business partner must agree in 1 idea and push it through until it become a good product.</span>



3 0
3 years ago
define Goodwill......... should it be considered as an asset and State the reason why it is controversial in a business today​
Lana71 [14]

Answer:established reputation of a business regarded as a quantifiable asset and calculated as part of its value when it is sold.

Explanation:if Company A buys Company B for more than the fair value of Company B's assets and debts, the amount left over is listed on Company A's balance sheet as goodwill.

8 0
3 years ago
La. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $ 112,000
olchik [2.2K]

The balance in the savings account at the end of the 8th year (i.e., after 8 deposits) is  $99,256, and the interest earned on the 8 deposits is $27,256

The future value of annuity is a calculation that measures how a good deal a chain of fixed bills might be really worth at a specific date in the future whilst paired with a particular interest price. The word “value” in this term is the coin's potential that a sequence of future payments can gain.

The equation to find future value of the annuity:

Future Value = E ( ( 1 + r)^p - 1 ) / r

E = Annual deposit = $9,000

r = Interest rate = 9%

P = 8 years

FV = Amount available = 9,000 ( 1.09^8 - 1 ) / .09 = $99,256

Interest = 99,256 - 9000 * 8 =  $27,256

Future value is the value of a current asset at a future date based on an assumed fee of growth. The future price is vital to investors and economic planners, as they use it to estimate how an awful lot of funding made today may be worth it in the future.

Learn more about the future value of annuity here brainly.com/question/14702616

#SPJ4

4 0
2 years ago
Other questions:
  • Which non-verbal facial expression is not recognized worldwide?
    12·2 answers
  • Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,
    9·1 answer
  • Kieso Company borrowed $630,000 for five months. The annual interest rate on the loan was 12%. Kieso's fiscal year ends on Decem
    5·1 answer
  • "A consumer buys a printer for her computer and receives a money-back offer. All she has to do is fill out a form and mail it to
    10·1 answer
  • ​Ambrosia, a small country in the Mediterranean​ region, has an​ agriculture-based economy. In recent​ years, a decline in globa
    10·1 answer
  • 31. Why is a profit and loss statement useful for a business? (1 point)
    6·2 answers
  • Channing Corporation makes two products (A1 and B2) that require direct materials, direct labor, and overhead. The following dat
    13·1 answer
  • What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance acc
    5·1 answer
  • How many peolpe come in a job in the moring
    7·1 answer
  • Greeting is the initial stage of the personal selling process that allows the sales person to "break the ice with the prospect.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!