1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artemon [7]
2 years ago
10

A company received $11,000 cash in exchange for 200 shares of the company’s common stock. What would the effect of this transact

ion on the current year’s accounting equation? Select one: A. No effect on Assets; $11,000 decrease in Liabilities; $11,000 increase in Stockholders’ Equity B. $11,000 increase in Assets; No effect on Liabilities; $11,000 increase in Stockholders’ Equity C. No effect on Assets; $11,000 increase in Liabilities; $11,000 decrease in Stockholders’ Equity D. $11,000 increase in Assets; $11,000 increase in Liabilities; No effect on Stockholders’ Equity
Business
1 answer:
MAVERICK [17]2 years ago
7 0

Answer:

B. $11,000 increase in Assets; No effect on Liabilities; $11,000 increase in Stockholders’ Equity

Explanation:

As the company received cash in exchange for the common stock. So, it affect the accounting equation which is shown below:

Total Assets = Total liabilities + Total  stockholder equity

The journal entry is shown below for better understanding:

Cash A/c Dr XXXXX

     To Common stock XXXXX

     To Additional Paid-in capital - in excess of  par XXXXX

(Being cash is received)

So, it would not impact the total liabilities

You might be interested in
Most companies have the need for a _________ department that can quickly repair and troubleshoot systems, as well as provide tec
iragen [17]

Answer:

IT Department

Explanation:

Most companies have the need for an  <em>IT</em> department that can quickly repair and troubleshoot systems, as well as provide technical support to employees.

An T Department takes care of all the technical streams running throughout the office. f any error or shortcoming occurs, the IT department makes sure they get rid of the bug that is causing the glitch.

They help the employees and provide them with technical support, since now a days, companies are 50% based on technology and any trouble can cause harm to the organization.

4 0
3 years ago
The auditor of a public company is assessing the value of all the intangible assets owned by the company. Which of the following
liq [111]

Answer:

B. The company's brand equity

Explanation:

Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery.  Examples of intangible assets include patent brand names, trademarks, or and copyright.

Intangible assets have a use-life of more than one year. They can be created or acquired, just like tangible assets. From the list in the case, The company's cash reserves, company's plant and equipment, and company headquarters are tangible assets because they have a physical presence.

6 0
3 years ago
epper Department store allocates its service department expenses to its various operating (sales) departments. The following dat
ad-work [718]

Answer:

Pepper Department Store

The total advertising expense allocated to Department B is:

= $24,000.

Explanation:

a) Data and Calculations:

Expense            Basis for allocation               Amount

Rent                   Square feet of floor space $ 49,000

Advertising        Amount of dollar sales      $ 80,000

Administrative   Number of employees     $ 120,000

Department   Square Feet   Dollar Sales   Number of employees

A                         5,500            $ 355,000              31

B                         5,900            $ 375,000              33

C                         6,100            $ 520,000              35

Totals               17,500          $ 1,250,000              99

Advertising Expense Allocation:

Department A = $22,720 (355,000/$1,250,000 * $80,000)

Department B = $24,000 ($375,000/$1,250,000 * $80,000)

Department C = $33,280 ($520,000/$1,250,000 * $80,000)

6 0
2 years ago
What does the size of the dividend per share of stock depend on?
docker41 [41]
The size of the dividend per share of stock depend on : The corporation's profit

Dividend per share is calculated by : Total dividend / Total shares outstanding,

Which mean that dividend per share will increase if the total dividend increases.

Meanwhile total dividend will increased if the company gains more profit
7 0
3 years ago
Read 2 more answers
Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $1
masya89 [10]

Answer:

Amount deposit = $118,411.4 (Approx.)

Explanation:

Given:

Future amount = $150,000

Rate of interest = 6% compounds semiannual

Number of year = 4 year

Find:

Amount deposit

Computation:

Compounds semiannual

So,

Rate of interest = 6% / 2 = 0.03

Time taken = 4 x 2 = 8 times

So,

A = P[1+r]ⁿ

150,000 = p[1+0.03]⁸

150,000 = p[1.03]⁸

150,000 = p[1.26677]

p = 150,000 / 1.26677

p = 118,411.393

Amount deposit = $118,411.4 (Approx.)

4 0
2 years ago
Other questions:
  • In italy, an automobile can be produced by 8 workers in one day and a washing machine by 3 workers in one day. in the united sta
    14·1 answer
  • The primary drawback of the edison talking machine for sound recording was:
    7·1 answer
  • In business terms the word buy is equivalent to the word
    9·1 answer
  • What ways can land contribute to production
    13·1 answer
  • Which of the following is not true about a good resume?
    12·1 answer
  • Explain why it is not necessary for paper money to be backed by some commodity (eg gold) before it can have value?
    5·1 answer
  • Define economic profit. Explain how economic profit is different than accounting profit. Why is it important for economists to m
    14·1 answer
  • Suppose an investor deposits $5,000 in an interest-bearing account at her local bank. The account pays 2.5% (annual) with intere
    9·1 answer
  • Vail Mountain Resort in Vail, Colorado, is a world-class ski destination. Vanessa is a newly-hired manager of digital media and
    6·1 answer
  • Revenue management methodology can be applied in the case of nonperishable assets.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!