Answer:
The expenses can be recorded as follows;
Debit to the expenses of $33,000 and a credit to the cash account of $33,000.
Explanation:
The accounting equation is an equation that tends to balance a company's assets on one side and the sum of its liabilities and shareholders equity on the opposite side of the equation. It form the basis for the double-entry system in accounting that includes an accounts debit and credit. The debit is a sum to an amount that is owed, it is usually listed on the left hand-side of an account while the credit is a listing of a sum that is received usually on the right hand side of an account.
In the case of Michael Barry, the accounting equation;
Assets=liabilities+stockholders equity
Assets=$126,000
Liabilities=$74,000
Stockholders equity=$52,000
liabilities+stockholders equity=74,000+52,000=$126,000
The assets equals the sum of the liabilities and stockholders equity.
To record expenses paid of $33,000;
Debit Credit
Expenses $33,000
Cash $33,000
Answer:
True
Explanation:
Section 351 (a) establishes that no gain or loss should be recognized when property is transferred to a corporation:
- in exchange of stock in that corporation (might receive common stock or share class stocks)
- as soon as the exchange is complete, the new stockholder must be in control of the corporation.
Not all common stocks have the same voting rights, that is why they are divided into share classes which assign separate voting rights or powers. Section 351 does not include preferred stocks.
Answer:
D. All of the above.
Explanation:
In the Aggregate Expenditure model or approach to GDP, GDP is calculated using the following formula:
GDP = C + I + G + NX (X-M)
Where:
- C = consumption
- I = Investment
- G = Government spending
- NX = Net exports
As can be seen, each of the elements of the equation are necessary to understand (calculate) GDP by the AE approach. Each element is also important to show how macroeconomic equilibrium is reached. Thus, the correct answer is D.
