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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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Hunt Incorporated sold $209,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% fin
pentagon [3]

Answer:

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

Explanation:

Journal entries

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

*7% X $209,000 =$14,630

*2% X $209,000 =$4,180+$12,100=$16,280

5 0
3 years ago
Insurance companies negotiate discounts with hospitals under a(n) Question 10 options: PPO. HMO. EPI. FYI.
nalin [4]

Insurance companies negotiate discounts with hospitals under a PPO. Option A

This is further explained below.

<h3>What are Insurance companies?</h3>

Generally, A corporation, which may be for-profit, not-for-profit, or government-owned, offers the promise to pay for particular expenditures in return for a recurring charge, which is referred to as a premium. For instance, if a person acquires health insurance, the insurance company will pay for (at least part of) the client's medical expenditures, if the client has any medical bills.

In conclusion, Within the context of a PPO, insurance companies negotiate savings with hospitals. Alternative

Read more about Insurance companies

brainly.com/question/16996203

#SPJ1

7 0
2 years ago
Bianca is conducting an experiment to determine how temperatures affect the productivity of employees. she has just completed th
Lyrx [107]
What are you asking as an abriviation
4 0
3 years ago
Health Care Event Protection
Genrish500 [490]

Answer:

$ 132,500

$4,250

$9000

Explanation:

From the given information:

Christina Haley of San Marcos who's aged 57 years recently suffered from stroke.

She was in intensive care for 3 days and was hospitalized for 10 more days

Total bill = $135,500

After Discharge;

she spent 25 days in a nursing home at a cost of $170 per day

Amount earned by Christiana per month at her work = $4500

She missed 2 months of going to work.

Christina had a health insurance plan through her employer.

The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap

1. How much of Christina’s direct medical expenses was paid by her insurance policy?

The amount the insurance policy paid  can be known by the expression:

= Total bill amount for the care - deduction for policy - coinsurance cap

= $135,000 - $1000 - $2,000

= $ 132,500

2. What did Christina have to pay for her nursing home care?

We are being told that She spent 25 days in a nursing home at a cost of $170 per day

Thus; the amount  Christina have to pay for her nursing home care = 25 × $ 170

= $4,250

3. How much income did Christina lose?

We knew she missed two months from work and she collect $4500 per month.

Thus the amount of income she lose =  $4500 × 2

the amount of income she lose = $9000

5 0
4 years ago
For the past year, Momsen, Ltd., had sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and ad
Ivenika [448]

Answer:

Net income= $11,412.2

Explanation:

Giving the following information:

sales of $46,382

interest expense of $3,854

cost of goods sold of $16,659

selling and administrative expense of $11,766

depreciation of $6,415

t=0.35

We need to use the following formula:

Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation

First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.

Sales= 46,382

COGS= (16,659)

Gross profit= 29,723

Selling and administrative expense= (11,766)

Interest=(3,854)

Depreciation= (6,415)

EBT= 7,688

Tax= (7,688*0.35)= (2,690.8)

Depreciation= 6,415

Net income= $11,412.2

6 0
3 years ago
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