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Natalija [7]
3 years ago
6

Identify each of the following transactions as:

Business
1 answer:
ale4655 [162]3 years ago
8 0

Answer:

Explanation:

Basically there are three types of activities under the indirect method is shown below:

1. Operating activities: It includes those transactions which affect the working capital, and it records gain or loss on sale of the assets. Increase in current assets and decrease in current liabilities would be subtracted and the decrease in current assets and increase in current liabilities would be added

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

So, the item categorization under each activities are shown below:

a. Cash sale of land  - Investing activity (I) (+)

b. Issuance of long-term note payable in exchange for cash  - Financing activity (F) (+)

c. Depreciation of equipment  - Operating activity (O) (+)

d. Purchase of treasury stock  - Financing activity (F) (-)

e. Issuance of common stock for cash  - Financing activity (F) (+)

f. Increase in accounts payable  -   Operating activity (O) (+)

g. Net income  - Operating activity (O) (+)

h. Payment of cash dividend  - Financing activity (F) (-)

i. Decrease in accrued liabilities  - Operating activity (O) (-)

j. Loss on sale of land  - Operating activity (O) (+)

k. Acquisition of building by issuance of notes payable  - Non-cash investing and financing activity (NIF) as no cash transactions involves

l. Payment of long-term debt  - Financing activity (F) (-)

m. Acquisition of building by issuance of common stock  -  Non-cash investing and financing activity (NIF) as no cash transactions involves

n. Decrease in accounts receivable  - Operating activity (O) (+)

o. Decrease in inventory  - Operating activity (O) (+)

p. Increase in prepaid expenses - Operating activity (O) (-)

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Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months
Katen [24]

Answer:

Please see the attached Snapshot for a schedule showing service revenue receivable and below are the journal entries for the year 2013, 2014 and 2015 on Income Taxes.

Explanation:

1. 2013 Journal Entry

Alsup Consulting

Dated: December 31, 2013

Debit: Tax Expense $134,000

Debit: Deferred Tax Liability $4,000

Credit: Income Tax Payable $138,000

<em>To record Income Tax Payable.</em>

2. 2014 Journal Entry

Alsup Consulting

Dated: December 31, 2014

Debit: Tax Expense $108,000

Credit: Income Tax Payable $100,000

Credit: Deferred Tax Liability $8,000

<em>To record Income Tax Payable.</em>

3. 2015 Journal Entry

Alsup Consulting

Dated: December 31, 2015

Debit: Tax Expense $114,000

Debit: Deferred Tax Liability $10,000

Credit: Income Tax Payable $124,000

<em>To record Income Tax Payable.</em>

3 0
2 years ago
Goliath Corp. has beginning accounts receivable of $2,000. During the year, Goliath sold goods to customers on account for $10,0
pishuonlain [190]

Answer:

$12,000

Explanation:

According to the accrual accounting method, the reporting of the transactions should be performed on an accrual basis which means whether or not the payment is paid but it is reported in the account books.

The revenue should be recorded when it is earned or realized and the expenses are recorded when it is incurred

So, in the given scenario, the amount based on accrual basis sales would be

= Goliath sold goods to customers on account + Goliath also sold goods to customers for cash

= $10,000 + $2,000

= $12,000

3 0
3 years ago
Under Armour (UA) opened a 15,000-square-foot store in Shanghai, China, which is its largest international brand store location.
Alexandra [31]

Answer:

It represents the strength of the company.

Explanation:

The reason is that strengths are the resources or uniqueness of the company that are used to oppose threats and exploit opportunities. The biggest store in Shanghai is the uniqueness of the company, so it represents its strength.

4 0
3 years ago
Jensen Company has cash proceeds from sales of $8,400. This amount includes $400 of sales taxes. Give the entry to record the pr
Levart [38]

Answer:

Debit Cash account          $8,400

Credit Sales account         $8,000

Credit Sales tax payable      $400

Being entries to record cash proceeds from sale.

Explanation:

Since total cash received from the sale was $8,400, a debit entry for this amount is posted to the Cash account.

Of the amount received, $400 is for sales tax. This is a liability to the organization and as such a credit entry for sales tax payable of $400 is recorded until it is remitted.

The balance of $8000 is the actual amount to be recognized as sales.

5 0
3 years ago
If you invest $15,000 today at a 6% interest compounded daily, what will be your ending value after 12 years?
True [87]

Answer:

Amount after 12 year will be $30762.16

Explanation:

We have given amount invested = $15000

Rate of interest r = 6 %

Time t = 12 years

As investment is compounded daily

So rate of interest =\frac{6}{365}=0.0164 %

As 1 year = 365 days

So 12 year = 12×365 = 4380 days

We know that future value is given by

A=P(1+\frac{r}{100})^n

So A=15000\times (1+\frac{0.0164}{100})^{4380}=30762.958$

So amount after 12 year will be $30762.16

4 0
2 years ago
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