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4 years ago

Which of the following applications of the rules of debit and credit is true?

Business

1 answer:

dimulka [17.4K]4 years ago

4 0

Answer:

d. increase Equipment with a debit and the normal balance is a debit

Explanation:

Equipment is an asset account. Asset accounts are increased with a debit, and decreased with a credit. Their normal balance is a debit because assets as a whole are debit accounts.

For example, if a firm has $1,000 worth of equipment, and purchases (with cash) $200 more, the journal entry would be:

Account Debit Credit

Equipment $200

Cash $200

And the new normal balance would be a debit worth of $1,200

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Alfred, an architect at Abode Inc., uses the term "spatial organization" while communicating to his client. The client is unable

vlabodo [156]

Answer:

Jargon

Explanation:

Based on the scenario being described within the question it can be said that the term "spatial organization" exemplifies Jargon. This term refers to any and all specialized terminology associated with a specific field or area of expertise. It is usually used between individuals of the same field who understand the word's meaning in a certain context, since those outside of the field may not understand it.

4 0

3 years ago

Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,500, and h

Jlenok [28]

Answer:

b. 9.75%

Explanation:

When a partner invests in a business, he/she expects to get return on his equity in the business. The major reason for this is to compare his/her return in the partnership business with the return he/she could get elsewhere.

The return on partner equity is calculated by dividing his/her net income from the partnership business by his/her average capital for the period.

The formula is given below:

Net income x 100

Average capital

Average capital = Opening capital balance + Closing capital balance

For Carter Pearson, the average capital is = $55,500 + $62,500

= $59,000

The return on equity will be: $5,750 x 100

$59,000

= 9.7457

= 9.75% - approximate to two decimal point.

5 0

3 years ago

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about

alina1380 [7]

Answer:

Annual demand (D) = 1,600 units

Ordering cost per order (Co) = $16

Holding cost per item per annum (H) = $8

EOQ = √2Dco

EOQ = √2 x 1,600 x $16

EOQ = 80 units

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

5 0

3 years ago

At May 1, 2020, Sheridan Company had beginning inventory consisting of 190 units with a unit cost of $7.30. During May, the comp

s2008m [1.1K]

Answer:

$6.71 per unit

Explanation:

The computation of average cost method is given below:-

Beginning Inventory

= 190 units × $7.30

= $1,387

Purchases

= 720 units × $7.30

= $5,256

Purchases

= 590 units × $5.80

= 3,422

Total units = 1,500

Total cost = $10,065

So, average cost per unit

Total cost ÷ Total number of units

= $10,065 ÷ 1,500

= $6.71 per unit

Therefore, to calculate the average cost per unit for May we simply divide 10,065 from 1,500

7 0

4 years ago

Several years ago, Nicole Company issued bonds with a face value of $1,030,000 for $960,000. As a result of declining interest r

EleoNora [17]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Bonds payable Dr, $1,030,000

Loss on retirement of bond Dr, $78,800

($1,091,800 - $1,013,000)

To discount on bond $17,000

To cash $1,091,800

($1,030,000 × 106%)

(Being retirement of the bonds is recorded)

8 0

3 years ago