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alekssr [168]
3 years ago
15

Owens Industries is trying to increase its profile in the community. As part of this effort, Owens sponsors a Little League base

ball team. The cost of sponsorship is $850. What impact does this transaction have on Owens’ accounting equation (A = L + SE)?
Business
1 answer:
xeze [42]3 years ago
8 0

Answer:

Assets will reduce by $850, and stockholder's equity will also reduce by $850

Explanation:

An accounting equation is constant and do not change, it is defined as

Assets = Liabilities + Stockholder's Equity

When the company sponsors the baseball team, it incurs an expense.

For this cash is spent, which is cash outflow and accordingly, it decreases cash and thus, assets are reduced.

On the other hand the sponsorship is an expense which will reduce the revenue which is clubbed in stockholder's equity as retained earnings.

Therefore, stockholder's equity will also be reduced.

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Answer:

Novak Company Journal. $

June 1

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3 years ago
Magenta Company purchased a machine from Pink Corporation on October 31, 2018. In payment for the $288,000 purchase, Magenta iss
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Answer:

$3,176 , it's two months of interests $1,588 + $1,588

Explanation:

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4 years ago
Hodor borrowed $1000. The bank charges him 5% interest per year. At the end of year, he paid $50 in interest. There was 2% incre
dem82 [27]

Answer:

5%

Explanation:

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5 0
3 years ago
During the latest month, the company purchased and used 47,000 pounds of direct materials at a price of $1.20 per pound to produ
Nataliya [291]

Answer:

$1400 U

Explanation:

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Which individual can use the head of household filing status?
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A. A married person with children

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That person would be the head because he would be in charge.

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