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FinnZ [79.3K]
2 years ago
5

The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account fo

r $47,000. Receive cash of $39,000 from customers in (a) above. Purchase bike equipment by signing a note with the bank for $32,000. Pay utilities of $4,700 for the current month. Analyze each transaction and indicate the amount of increases and decreases in the accounting equation.
Business
1 answer:
Licemer1 [7]2 years ago
8 0

Answer:

Accounting equation is as follows:

Assets = Liabilities + Stockholder's Equity

(a) Services worth of $47,000 provided on account which increases the accounts receivable which is a part of assets and increases service revenue which is a part of equity.

Assets = Increases ($47,000)

Stockholder's Equity = ($47,000)

(b) Received cash from the customers for services provided on account.

This increases the cash which is a asset and reduces the accounts receivable with the same amount.

Assets = Increases ($47,000) ⇒ Cash

Assets = Decreases ($47,000) ⇒ Accounts receivable

(c) Purchasing a bike by signing a note would increases the notes payable which is a liability and increases the Equipment which is a asset.

Assets = Increases ($32,000) ⇒ Equipment

Liabilities = Increases ($32,000) ⇒ Notes payable

(d) This will reduce the cash which is an asset and increases the utility expense which lead to reduce the equity.

Assets = Decreases ($4,700) ⇒cash

Stockholder's Equity = ($4,700) ⇒ Utility expense

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Answer:

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Explanation:

Marigold Corp.'s Account Balances

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<u>Required  Adjustment                                      $ 40080</u>

<u />

The data tells that the Allowance for Doubtful Accounts  has a credit balance of $1920 the required adjustment to the allowance for doubtful accounts is $ 40080. The required entry is

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4 0
3 years ago
Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
MissTica

Answer:

1. B. 3.14

2. C. 1.12

Explanation:

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The formula is simply,

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