Answer:
<u>Transactions:</u>
1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for 340.
3. June 3 $760 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $410 after completing welding work done on account.
<u>Journal Entries:</u>
1.
June 1 Dr. Cr.
Investment $3,910
Cash $3,910
2.
June 2 Dr. Cr.
Equipment $340
Account Payable $340
3.
June 3 Dr. Cr.
Rent Expense $3,760
Cash $3,760
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $410
Welding Service Revenue $410
Answer:
a. increased by $56,000
Explanation:
General accounting equation ;
Assets = Liabilities + Owners equity
Owners equity = Assets - Liabilities.
Therefore,
Increase in stockholder's equity
= $87,000 - $31,000
= $56,000
When an investor is protected by limited liability, the most they can lose if the company in which they have invested goes bankrupt is the amount that they first invested.
Hence, Investment completes the sentence "...limited liability is an investment. "
This is further explained below.
<h3>What is
the investment?</h3>
Generally, When an investor is protected by limited liability, the most they can lose if the company in which they have invested goes bankrupt is the amount that they first invested.
Limited liability is one in which a person's financial obligation is restricted to a certain amount.
This predetermined amount is often equal to the value of the human's stake in a corporation, or firm.
In conclusion, Investing is using money now in the hopes of earning a higher return in the future. The goal of every investment is to provide a return that is higher than the initial outlay of resources
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The unit selling price of the selling price is equal to the sum of the original price and the amount that should be added for the marking-up, which is equal to 30% of the original per unit cost. This can be calculated through the equation below.
per unit selling price = ($18)(1.30) = $23.4
ANSWER: $23.4
Answer:
$1,589 favorable
Explanation:
Calculation to determine what the controllable variance for the month was:
Using this formula
Overhead Controllable Variance =(Budgeted overhead per unit x standard number of units) - Actual overhead expense
Let plug in the formula
Controllable variance=(6,040*$2.10)-$11,095
Controllable variance=$12,684-$11,095
Controllable variance=$1,589 favorable
Therefore the controllable variance for the month was:$1,589 favorable