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
Rufina [12.5K]
3 years ago
7

Received contributions of $ 10 comma 000$10,000 in exchange for common stock. a. Increase asset (Cash) ; Increase equity (Common

Stock) b. Purchased equipment for $ 5 comma 000$5,000 on account.
Business
1 answer:
MakcuM [25]3 years ago
6 0

Answer:

The answer is stated below:

Explanation:

A. Received or collected $10,000 in exchange of the common stock:

This transaction will have an impact on the Accounting Equation of the Accounts, which is :

Assets = Liabilities + Equity

As the cash is received, there will be an increase in the assets and under the cash account of the current assets. Though the cash is against the common stock, which increases the common stock account upon the side of the equity.

Therefore, it will be:

Increase in assets (Cash) : Increase in equity (Common Stock)

B. Bought the equipment on account worth $5,000.

This transaction will have an impact on the Accounting Equation as:

As the equipment is purchased will in turn lead to increase in the assets side, under the equipment account and it is purchased on account, which means on credit, that leads to increase in the liability under the Accounts Payable account.

Therefore, it will be:

Increase in assets (Equipment) : Increase in Liability (Accounts Payable)

You might be interested in
During 2015, Rainbow Umbrella Corp. had sales of $730,000. Cost of goods sold, administrative and selling expenses, and deprecia
Brrunno [24]

Answer:

The company's net income for 2015 is loss $62,000 ( -$62,000)

Explanation:

During 2015, Rainbow Umbrella Corp. had sales of $730,000

Total expense for 2015 = Cost of goods sold + Administrative and selling expenses + Depreciation expenses + Interest expense = $450,000 + $90,000 + $160,000 + $92,000 = $792,000

Sales - Total expense = $730,000 - $792,000 = -$62,000<0

The company recorded loss in 2015 the amount of $62,000 and didnot have to pay tax.

6 0
3 years ago
While paying at a burger joint, Amanda realized she had forgotten her checking account credit card at home and also ran out of c
maria [59]
No food I feel bad for Amanda
5 0
3 years ago
Read 2 more answers
Statistics! New help asap
Llana [10]

Answer:

im sorry i cant see the picture what is it sorry

3 0
3 years ago
Computing Number of Shares
DIA [1.3K]

Answer: See explanation

Explanation:

1. Determine the authorized shares.

The authorized share simply refers to the maximum number of shares that can be issued by a particular company. In this case, the authorised share is 212000.

2. Determine the issued shares.

The issued share simply means the shares sold. In this case, the answer is 145000 shares.

3. Determine the outstanding shares.

The outstanding shares will be:

= 145000 - 15000

= 130000

5 0
3 years ago
One of the reasons why the AD curve slopes downward is that as theA. Price level rises, purchasing power rises.B. Price level fa
8090 [49]

Answer: Option (B) is correct.

Explanation:

If the price of a commodity decreases, as a result purchasing power of a consumer increases. This is one of the reasons why the AD curve slopes downward.

Suppose there is a fall in the price of a commodity, this will increase the demand for that commodity as well as the purchasing power of the consumer.

Because with a lower price of the commodity, individuals can buy more quantity of goods with the same level of income.

4 0
3 years ago
Other questions:
  • Suze says that YFB’rs are broke. She gives 10+ reasons why, what are 3 of the reasons of why they are broke?
    13·1 answer
  • The economics profession thrives because:
    15·1 answer
  • A new accountant at Windsor, Inc. is trying to identify which of the following amounts should be reported as the current asset "
    15·1 answer
  • Required information
    12·1 answer
  • Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is rea
    6·1 answer
  • Which of the following insurance types will cover the possessions inside your home?
    12·1 answer
  • Which of the following statements about money that is​ correct? A. Money is a completely stable store of value. B. Credit cards
    11·1 answer
  • Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budg
    7·1 answer
  • A student has inherited $50,000. If it is placed in asavings account that earns 3% interest, how much isin the account in 30 yea
    14·1 answer
  • Where is Shengyren based
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!