Answer:
It will affect the accounting equation in $7.000.
Explanation:
The Assets will increase in $8.000 because Address You now have the right to claim to a customer $8.000 and is recognized in the Receivables. At the same time, Address You has to diminish its inventories at $1.000, because it delivered the dress to the customer. Finally, on the other hand, the profits for selling the dress ($8.000 - $1.000) affect the equity, and now the Accounting equation is balanced.
Answer:
Assets increase by $10,000
Total stockholders' equity increases by $10,000
Explanation:
Since in the question, it is given that, the purchase value of equipment is $100,000 and the exchanged value is $110,000
So, the difference of $10,000 ($110,000 - $100,000) would reflect that the assets would increase by $10,000 and the total stockholders' equity is also increased by $10,000
The exchange value is a combination of $70,000 in trade allowance and $40,000 was paid in cash
Answer:
The credit portion of a general journal entry is always recorded first.
Explanation:
A journal entry involves the process of keeping the records of business transactions made by an organization.
The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
Also, the total amount of money credited must equal the total amount of money debited.
The following statements are correct and true about the general journal;
I. The description of a journal entry should include a reference to the source of the information contained in the entry.
II. If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.
III. A firm should be able to trace amounts through the accounting records and back to their source documents.
Answer:
Flow-through.
Explanation:
Flow-through is basically how to limit taxation or avoid double taxation. In terms of business, it is passed to the owner / investors.
Answer:
Option D is correct one.
<u>$12</u>
Explanation:
Consumer surplus is the difference between willingness to pay and market price.
Consumer surplus= (10-5) + (9-5) + (8-5)
= 5+4+3= 12
