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3 years ago

Carl Cornfield makes a payment on his tractor. What two lines of the balance sheet will this payment change?

Business

1 answer:

Amiraneli [1.4K]3 years ago

4 0

Answer:

Property plant and equipment in non current asset section of Carl Cornfield's balance sheet will be increased.

Cash at bank in current asset section of Carl Cornfield's balance sheet will be decreased.

Explanation:

When the entity makes payment for any vehicle, the following two sections of the balance sheet are changed:

Property plant and equipment in non current asset section is increased.

Cash at bank in current asset section is decreased.

So the following two lines of Carl Cornfield balance sheet will be changed.

Property plant and equipment in non current asset section of Carl Cornfield's balance sheet will be increased.

Cash at bank in current asset section of Carl Cornfield's balance sheet will be decreased.

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Which statement best describes capitalism

amm1812

An economic and political system in which a country's trade and industry are controlled by private owners for profit rather than by state. {This is what the dictionary said by the way}

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4 years ago

Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9

konstantin123 [22]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $15,000,000

To Bonds payable $15,000,000

(Being issue of bonds is recorded)

2. Interest expense on bonds Dr, $675,000

To cash $675,000 ($15,000,000 × 9% × 6 ÷ 12)

(Being payment of interest is recorded)

3. Bonds payable Dr, $15,000,000

To Gain on redemption of bonds $600,000

To Cash ($15,000,000 × 0.96) $14,400,000

(Being redemption on bonds is recorded)

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3 years ago

On December 21, 2020, Sage Company provided you with the following information regarding its equity investments. December 31, 20

Sindrei [870]

Answer:

(a) Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

Cr Equity Investment (trading) $10,900

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2020

Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2021

During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

($10,900-$10,350)

Cr Equity Investment (trading) $10,900

Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Calculation for Fair value Adjustment

Cost FV Profit Unrealized Gain (Loss)

Clemson Corp. stock $20,400-$19,390 =$1,010

Buffaloes Co. stock $20,400-$20,900=-$500

Total portfolio $40,800 $40,290 ($510)

Previous Fair value adjustment $1,610

Unrealized Holding Gain $1,100

($1,100-$510)

4 0

3 years ago

Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou

erik [133]

Answer:

$0.12 billion; a budget surplus

Explanation:

Given that,

Total spending for the last fiscal year = $4.71 billion

Tax collected during the same fiscal year = $4.83 billion

Government transfers = $0

Lilliput's budget balance:

= (Taxes - Government transfers) - Total spending of government

= ($4.83 billion - $0) - $4.71 billion

= $0.12 billion

Therefore, the Lilliput has a budget surplus during the last fiscal year because of the positive budget balance.

5 0

3 years ago

During the adjusting process two transactions were missed. The first is for unearned rent revenue of which $450 was earned durin

masya89 [10]

Answer:

3. net income is understated by $175

Explanation:

There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.

Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.

Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.

4 0

3 years ago