An example of primary market transaction occurs when there
is a presence of creation of securities in which there is an initial public
offering the occurs in a market n means for having to make the market to sell
for the first time as it is associated or showed in the public.
Answer:
Owner's withdrawals:______.
a) decrease owner's equity.
Explanation:
The withdrawals made by the owner of an entity reduces his or her equity interest in the entity. Owner's withdrawals are transfers of cash from the business to its owner. They are not expenses of the business and do not appear in the income statement. Instead, withdrawals may occur when an organization is spinning off extra cash or when the owner has an immediate personal need for the funds. The forms of business organizations that allow for withdrawals by the owners are the partnership and the sole proprietorship.
Answer: The journals to record the sale of the receivables in Sunland Company's books are:
Debit Credit
Cash 729,600
Service charge expense 38,400
Accounts receivable 768,000
Explanation: Please note that Western Factors Inc. charges 5% of the amount of receivables sold. This means the cash transfer Sunland Company would make to western Factors Inc. would be net of the 5% service charge (5% * $768,000 = $38,400). Since Sunland is disposing the receivables, that account has to be credited. Then, the actual cash transfer would be $729,600 ($768,000 - 38,400). That is what Western Factors Inc. would now carry as its own receivables in its books.
The answer would be a)<span> occurs when demand for goods and services exceeds existing supply. Reason being, when there is high demand for a product, the price goes up because there are fewer available, however, in return for the raised prices people will eventually stop buying and the product price will drop.
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