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
My name is Ann [436]
2 years ago
9

Indicate the effect of each transaction during the month of October 20Y8 and the balances for the accounting equation after all

transactions have been recorded. No beginning balances exist in the accounts. An accounting equation has been provided. Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for common stock. Paid rent on the office building for the month, $2,000. Received cash for fees earned of $5,000. Purchased equipment, $7,000. Borrowed $20,000 by issuing a note payable. Paid salaries for the month, $1,000. Received cash for fees earned of $8,000. Paid dividends, $3,000. Paid interest on the note, $100.
Business
1 answer:
Leona [35]2 years ago
3 0

Answer:

For better visualization, the answer is presented in a table

\left[\begin{array}{ccccc}&Assets&=&Liabilities +&Equity\\1&45,000&=&&45,000\\2&-2,000&=&&-2,000\\Bal.&43,000&=&0&43,000\\3&5,000&=&&5,000\\Bal.&48,000&=&0&48,000\\4&&=&&\\Bal.&48,000&=&0&48,000\\5&20,000&=&20,000&\\Bal.&68,000&=&20,000&48,000\\6&-1,000&=&&-1,000\\Bal.&67,000&=&20,000&47,000\\7&8,000&=&&8,000\\Bal.&75,000&=&20,000&55,000\\8&-3,000&=&&-3,000\\Bal.&72,000&=&20,000&52,000\\9&-100&=&&-100\\Bal.&71,900&=&20,000&51,900\\\end{array}\right]

Procedure details described below:

Explanation:

<em>Opened a business bank account for Jones, Inc., with an initial deposit of $45,000 in exchange for common stock. </em>

The cash is an asset for the company And Jones Is the Owner thus, asset and equity increase by 45,000

<em>Paid rent on the office building for the month, $2,000. </em>

The rent is an expense is an incurred cost to continue the operations of the business It decreases the equity and asset (cash used to pay the rent)

<em>Received cash for fees earned of $5,000. </em>

The fees are revenue from the business operations this is a realized gain, therefore, increases equity. Also, Assets increase as cash is an asset.

<em>Purchased equipment, $7,000.</em>

There is no change in the quantities but, the composition of the asset did change. Cash decrease while equipment increase.

<em>Borrowed $20,000 by issuing a note payable. </em>

The note payable is a future obligation to pay. It is a liability for the company assumed in exchange for an asset (cash)

<em>Paid salaries for the month, $1,000. </em>

Like rent, this is an incurred cost(expense) It decreases Equity also, assets as we use cash to pay it.

<em>Received cash for fees earned of $8,000.</em>

Exactly like the previous time, a realized gain generates an increase in equity and assets.

<em>Paid dividends, $3,000.</em>

The dividends are paid to the company's owners thus, the cash leaves the company into the owner's pocket. Both, assets and equity decrease (as there are fewer assets available for the owners to take)

<em />

<em>Paid interest on the note, $100.</em>

The interest also is an incurred cost thus, like salaries and rent expense we decrease equity and assets.

You might be interested in
New Town Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable
SOVA2 [1]

Answer:

  • What is the sales revenue under the worst-case scenario?

$ 125,032

Explanation:

Initial Escenario

TOTAL     Income Statement Unit   Quantity

$ 1,035,200 Total Net Sales       $ 647  1.600  

-$ 352,000 Variable Cost          $ 220  

-$ 64,000 Depreciation Expenses  

$ 619,200 Contributing Margin  

-$ 438,000 Anual Fixed Costs  

$ 181,200 Segment Margin  

Worst Case Escenario

Quantity fall 3% from 1,600 to 1,552

Price Fall 2% from $647 to $634

Variable Cost Increase 2% from $220 to $224

Anual Fixed Cost Increase 2% from $438,000 to $446,760

Depreciation Expenses maintained at the same level.

TOTAL Income Statement Unit Quantity

$ 984,061 Total Net Sales $ 634  1.552  

-$ 348,269 Variable Cost         $ 224  

-$ 64,000 Depreciation Expenses  

$ 571,792 Contributing Margin  

-$ 446,760 Anual Fixed Costs  

$ 125,032 Segment Margin  

0 0
3 years ago
You started a new job working 4 days a week. During a work day you can complete 3 tasks per hour. You also take a half hour for
aleksandr82 [10.1K]
21 tasks, if you use your lunch break and your 2 15 minute breaks
4 0
2 years ago
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad
hoa [83]

Answer:

$3,700

Explanation:

Given that

Adjusted gross income for the year 2019 = $415,300

Children ages = 4, 7, and 18 as dependents

Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is

= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)

= ($2,000 × 2 + $500) - ($50 × 16)

= $4,500 - $800

= $3,700

After $400,000 the $50 is decreased for each and every $1,000

5 0
3 years ago
The discounted payback period rule states that a company will accept a project if?
yawa3891 [41]

According to the "Discounted Payback Period Rule," a business will approve a project if the calculated payback is shorter than a predetermined period of years.

Definition of Period of Repayment

The number of years required to recover the initial financial investment is referred to as "payback time." In other words, it measures how long a machine, facility, or other investment has produced enough net income to cover its costs.

<h3>What are NPV and payback period?</h3>

While NPV (Net Present Value) is calculated in terms of money, payback technique refers to the length of time required for a return on investment to equal the initial investment. Payback, NPV, and countless more metrics are examples of approaches to measure the worth of a project.

To learn more about Payback period visit:

brainly.com/question/13928462

#SPJ4

4 0
1 year ago
What’s the answer???
Yuliya22 [10]

Answer:

market

Explanation:

for the top one market is where they trade

6 0
2 years ago
Read 2 more answers
Other questions:
  • Redding Corp. reported the following information in its 2017 annual report (in millions). Plans' assets at fair value, January 1
    13·1 answer
  • Company A has a beta of 0.90, while Company B's beta is 1.20. The required return on the stock market is 11.00%, and the risk-fr
    10·1 answer
  • Drivers of the growth of international acquisitions include all of the following except:_________.
    14·1 answer
  • Miller Company makes two types of chairs. One of the chairs is a rocking chair. The other is a straight-back chair. Both chairs
    5·2 answers
  • The motive of an intimate homicide is almost always anger/revenge or profit. True or False?
    15·1 answer
  • Crystal Glasses recently paid a dividend of​ $2.70 per​ share, is currently expected to grow at a constant rate of​ 5%, and has
    15·1 answer
  • Relationship between technology and technical profession with example
    13·1 answer
  • Ramort Company reports the following cost data for its single product. The company regularly sells 21,500 units of its product a
    15·1 answer
  • A) Which talent management approach better fits the SMEs context and
    15·1 answer
  • A car rental agency rents 220 cars per day at a rate of 28 dollars per day. For each 1 dollar increase in the daily rate, 6 fewe
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!