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MissTica
3 years ago
6

Daffy Duct, Inc. issued 10,000 shares of no-par value common stock at $10 per share. Miss Hap, the bookkeeper, recorded the tran

saction with a $100,000 debit to Cash and $100,000 credit to Common stock. Which of the following statements about this situation is correct?A.Total assets will be overstated.B.This entry is correct.C.Total stockholders' equity will be overstated.D. Total liabilities will be understated.
Business
1 answer:
Westkost [7]3 years ago
8 0

Answer:

B

Explanation:

When a company issues shares, ‘cash’ is debited because money has come into the firm (debit means addition). ‘Equity’ is credited however because it is money the business is owing to the business owners (credit means negative)

Equity is always a credit balance when new shares are issued. It means the business is owing more to the business owners.

Note that Equity is a credit balance (in negative position) while Asset is a debit balance (positive)

In our case, we have added more business owners by getting more money to the business to the tune of $100,000. We will therefore credit equity by -$100,000). Since money came in, we also debit cash by adding an equivalent +$100,000.  

The entry is therefore balanced and correct!

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Rutgers Industries has the following inventory information for 2019: Jan 1 Beginning Inventory 240 units at $100 per unit June 1
timofeeve [1]

Answer:

$86,000

Explanation:

FIFO means first in, first out. It means that the first purchased inventory is the first to be sold.

This means thay the 500 units sold would be taken from the earliest purchased inventory and the ending inventory would be the most recently purchased inventories.

Ending inventory = (80 × $150) + (370 × $200) = $12,000 + $74,000 = $86,000

I hope my answer helps you

4 0
3 years ago
What is one benefit of declaring bankruptcy?
Naddik [55]
O A. It removes debts that a person or business cannot repay.
7 0
3 years ago
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Which of the following is NOT a common form of indirect compensation?
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Answer:

O Discounts

Explanation:

Hope this helps

8 0
3 years ago
The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for
zmey [24]

Answer:

$778460

Explanation:

Using the highlow method, we calculate the variable cost per unit,

  • VC / unit = 855460 - 651960 / 730000 - 545000  = $1.1per unit
  • The total fixed cost will be = 855460 - (1.1 * 730000) = $52460

The cost estimating equation will be,

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The cost of manufacturing supplies for the month of July will be,

  • Total cost (July) = 1.1(660000) + 52460   = $778460
6 0
3 years ago
Gerard is a mid-level manager who believes that people do not like to work and try to avoid it. He therefore controls, directs,
liq [111]

Answer:

The correct answer is c. McGregor's Theory X.

Explanation:

Theory X is defined by Douglas McGregor in his 1960s book "The Human Side of Enterprise" as an <em>authoritarian</em> style of management. In the book, McGregor explains that styles of management are greatly influenced by how the manager views people. Theory X is based on the view that workers are inherently lazy and unmotivated, prefer to be directed, do not like to take responsibility and dislike to work in general. In this style of management, it is assumed that the only way to push employees to work is to provide them with incentives or punishments, according to their performance. Also, authority is centralized on a select few and employees are strictly controlled and supervised.

In this particular case, Gerard fits the Theory X style of management, as he coerces and threatens employees to push them to do their jobs. He has the belief that people don't like to work and avoid it.

6 0
3 years ago
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