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3 years ago

Cool Taste Company purchased $1,500 of supplies with cash. What effect does this transaction have on the accounting equation?

Business

1 answer:

Brrunno [24]3 years ago

5 0

Answer:

None

Explanation:

This transaction has a nil effect on the accounting equation.

The accounting equation is as given below;

Assets = Liabilities + Equity

The purchase of supplies with cash is a credit to cash and a debit to inventory. This represents a decrease in one asset and an increase in another of the same amount.

Hence no change happens to the equation.

The liabilities and equity account are not affected by the transaction.

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Kipish [7]

Answer:

Option E (Compromising) would be the correct choice.

Explanation:

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2 years ago

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3 years ago

The owner of a major league baseball team can fire employees for not winning a pennant, have the city build him a new ballpark,

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3 years ago

Compared to a monopoly that does not priceâ€‹ discriminate, a monopolist who engages in perfect price discrimination will produc

pantera1 [17]

Answer:

An output that maximizes revenue and profits. If a firm can price discriminate, it will sell its product or service at a different price to every single consumer. Perfect price discrimination refers to pricing your product at exactly the highest amount that each individual consumer is willing to pay, i.e. consumer surplus disappears.

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2 years ago

Sox Corporation purchased a 30% interest in Hack Corporation for $1,525,000 on January 1, 2021. On November 1, 2021, Hack declar

Serjik [45]

Answer:

$1,200,000

Explanation:

SOX Corporation purchased a 30% interest for $1,525,000

On November 1, 2021, Hack declared and paid $1,100,000 million in dividends

Hence, Carrying value = $1,525,000 - 30%($1,100,000)

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Carrying value = $1,195,000

Net loss given during the year reported by Hack is $4,000,000

Hence, Net Loss of SOX is $4,000,000 * 30%

Net Loss = $1,200,000

Therefore, the net loss to be recognized in the Income statement is $1,200,000

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2 years ago