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dangina [55]
3 years ago
14

The Balance Sheet for Renuvation LLC shows assets totaling $107,000 and liabilities totaling $75,000. Which of the following sta

tements is correct?
A. Owner's Equity equals $182,000.
B. Current Assets are worth $32,000.
C. Net Income for the period is $32,000.
D. Owner's Equity equals $32,000.
Business
1 answer:
dangina [55]3 years ago
4 0

Answer:

D. Owner's Equity equals $32,000.

Explanation:

In this, the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

where,

Total assets is $107,000

And, the total liabilities is $75,000

Now put these values to the above formula  

So, the value would equal to

$107,000 = $75,000 + stockholder equity  

So, the stockholder equity would be

= $107,000 - $75,000

= $32,000

This accounting equation equates and balanced the balance sheet

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On July 15, 2021, the Nixon Car Company purchased 2,600 tires from the Harwell Company for $35 each. The terms of the sale were
mote1985 [20]

Answer:

Explanation:

The journal entries are shown below:

On July 15:

Purchase A/c Dr $89,180

       To Accounts payable $89,180

(Being purchase of goods are made on credit with discount)

The computation of the purchase of tires after applying the discount is shown below:

= Number of tires × price per tire - discount rate

= 2,600 tires × $35 - 2%

= $91,000 - $1,820

= $89,180

On July 23:

Account payable A/c Dr $89,180

     To Cash A/c                                  $89,180

(Being payment is made)

On August 15:

Account payable A/c Dr $89,180

Interest expense A/c Dr $1,820

     To Cash A/c                                  $91,000

(Being payment is made on late interval)

4 0
3 years ago
Radio:What is an example of a long-term liability?
Alex Ar [27]
In accounting, the long-term liabilities<span> are shown on the right wing of the balance-sheet representing the sources of funds, which are generally bounded in form of capital assets. Examples of </span>long-term liabilities<span> are debentures, mortgage loans and other bank loans.


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7 0
3 years ago
Read 2 more answers
Uncertainties such as natural disasters are: Select one: a. Estimated liabilities because the amounts are uncertain. b. Not cont
Dovator [93]

Answer:

d. Disclosed because of their usefulness to financial statements.

Explanation:

A <em>liability</em> is a present obligation (Legal or Constructive) of an Entity that arises as a result of a past event and the settlement of which will result from an out flow of cash from the entity.

One class of Liability that relate to the case is a <em>Provision</em>.A provision is a liability whose amount can be determined with certainty.

A liability whose amount can not be determined with certainty is known as a <em>Contingent liability</em>.A contingent liability is not presented in the financial statements but is  only disclosed in the Financial Statements.

6 0
3 years ago
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales
mixer [17]

Answer:

b. $3,000

Explanation:

According to the above information, the following data are given

Credit sales = $100,000

Uncollectible percentage = 3%

So, after the adjustment by using allowance method, Bad debt expense can be calculated as;

Bad debt expense = Credit sales × Uncollectible percentage

= $100,000 × 3%

= $3,000

3 0
3 years ago
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at whic
kicyunya [14]

Answer:

A. 104%

B. 66.7%

Explanation:

A. Calculation for what would be the percentage return earned

Percentage return =($50-$30-30*60%*7%)/30*60%

Percentage return(20-$18*.07)/18=

Percentage return=1.04*100

Percentage return=104%

Therefore what would be the percentage return earned is 104%

B. Calculation for What would have been the return if the investor had notbought the stock on margin

Percentage return=($50-$30)/$30

Percentage return=$20/$30

Percentage return=66.67 %

Percentage return=66.7% Approximately

Therefore What would have been the return if the investor had notbought the stock on margin is 66.7%

7 0
2 years ago
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