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tresset_1 [31]
3 years ago
8

Perfect Printers is able to obtain 30 days credit terms to purchase a heavy duty printing machine for $200,000. How will this pu

rchase impact the accounting equation of Perfect Printers at the time of the purchase?
Business
1 answer:
12345 [234]3 years ago
8 0

Answer:

How will this purchase impact the accounting equation of Perfect Printers at the time of the purchase?

An increase in the assets by $200,000 and a similar increase in liability by $200,000

Explanation:

The accounting equation is the foundation for the double enter system of account balancing. In this system, the amount of debits are entered on one side as the corresponding credit is entered on the other side. Then the total credits are added and compared to the sum of the debit. When the credit equals the debit, the accounts balance. The accounting equation can be expressed as;

A=L+E

where;

A=assets

L=liabilities

E=owner's equity

Lets enter the transaction as shown;

Account type                                   Asset                                Liability

Printing machine                          $200,000

Cash                                                                                       $200,000

Total                                              $200,000                        $200,000

An increase in the assets by $200,000 and a similar increase in liability by $200,000

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sleet_krkn [62]

The answer is: Conscientiousness

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For high school graduation, Ryan’s family is giving him a choice between two presents that are both worth $900. He can choose ei
yulyashka [42]

Answer: The Mexican trip with his best friends

Explanation:

Ryan cannot choose both options and thus has to make a decision of which option to take. Therefore he automatically sacrifices the other option. This type of decision is relevant and is known as a relevant cost. Relevant costs are costs that differ between alternatives, and thus influence the decision that you will make.

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2 years ago
What is a product item?
Vsevolod [243]

Answer:

Explanation:

A product item is a specific version of a product that can be designated as a distinct offering among an organization's products. A product line is a group of closely related products offered by an organization.

5 0
3 years ago
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for
Pani-rosa [81]

Answer: See explanation

Explanation:

The general journal entries necessary to adjust the interest accounts at December 31 will be:

1. December 31:

Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102

Credit: Interest payable = $102

(To accrue interest expenses for the note issued on November 10).

2. December 31:

Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120

Credit: Interest payable = $120

(To accrue interest expenses for the note issued on December 1)

3. December 31:

Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67

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3 0
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Pavel [41]

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

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This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

7 0
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