All categories

3 years ago

When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?

Business

1 answer:

GREYUIT [131]3 years ago

3 0

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is

Total assets = Total liabilities + stockholder equity

In the given case,

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

You might be interested in

Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common

Vanyuwa [196]

Answer:

The company's revenue for the year is $1,615,000.

The correct option is A. $1,615,000.

Explanation:

Given:

Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common stock, recorded expenses of $1,500,000, and paid dividends of $90,000.

If Patterson’s ending retained earnings was $350,000.

Now, to find the company's revenue for the year.

Opening Retained earnings = $325,000.

Common stock = $500,000.

Recorded expenses = $1,500,000.

Paid dividends = $90,000.

Closing Retained earnings = $350,000.

Now, to get the revenue of the company we put formula:

Revenue = (Recorded expenses + paid dividends + closing Retained earnings) - opening Retained earnings

$Revenue=(1500,000+90,000+350,000)-325,000$

$Revenue=1940000-325000$

$Revenue=1615,000.$

Therefore, the company's revenue for the year is $1,615,000.

The correct option is A. $1,615,000.

4 0

4 years ago

Select the answer that best describes why the return on investment (ROI) for higher education is high even thought the cost of c

LekaFEV [45]

The correct answer for this question is this one: "B. You have the potential to earn less money in the future when you continue your education past college."

The return on investment (ROI) for higher education is high even thought the cost of college is increasing. So, you have the potential to earn less money in the future when you continue your education past college.
Hope this helps answer your question and have a nice day ahead.

5 0

3 years ago

The concept referring to the rights inherent in a supervisory position to give orders and expect the orders to be obeyed is:____

Snowcat [4.5K]

The concept referring to the rights inherent in a supervisory position to give orders and expect the orders to be obeyed is---- Authority

What is the concept of authority?

Authority can be defined as the legal right of a person or superior to command his subordinates. On the other hand, accountability refers to the duty of an individual to carry out his performance as per the company standards. The direction of the flow of authority is from the superiors to subordinates.

What is authority in a person?

a person who has authority over another person : a person who has the power to give orders or make decisions A child needs a figure of authority in his or her life.

Why is it important to have authority?

Authority can be used to protect our rights to life, liberty, and property. Authority can be used to provide order and security in people's lives. For example, air traffic controllers prevent accidents and provide safety for airplane passengers. Authority can be used to manage conflict peacefully and fairly.

Supervisory position :

Supervisory position means a position in which an employee directs staff members and manages a function, program or support service. Supervisory position means a position, the assigned duties of which include the supervision of a work unit of a department.

Learn more about supervisory position :

brainly.com/question/18634602

#SPJ4

5 0

2 years ago

¿Por qué implantar el DO en una organización?

marysya [2.9K]

Answer:

Explanation:

8 0

3 years ago

Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral deliv

OlgaM077 [116]

Answer:

Davis Florist

a. (Anita, Jerome) __Jerome____ absolute advantage in floral arrangements. __Jerome____ (Anita, Jerome) has an absolute advantage in deliveries.

b. Anita’s opportunity cost of making one floral arrangement is ___0.75__

( 1.33, 0.75, .33, 3) deliveries. Anita’s opportunity cost of making one delivery is __1.33_ (1.33, 0.75, .33, 3) floral arrangements.

c. Jerome’s opportunity cost of making one floral arrangement is ___0.33__(.75,3,1.33..33) deliveries. Jerome’s opportunity cost of making one delivery is 3 (3, 1.33, .75, .33) floral arrangements.

d. (Jerome, Anita)_Jerome____ has a comparative advantage in floral arrangements. (Jerome, Anita)__Anita___ has a comparative advantage in deliveries.

e. Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day?

____4_____ additional floral arrangements

____5____ additional deliveries

Explanation:

a) Data and Calculations:

Time it takes Anita to finish one floral arrangement = 30 minutes

Time it takes Anita to make a delivery = 40 minutes

Time it takes Jerome to finish one floral arrangement = 10 minutes

Time it takes Jerome to make a delivery = 30 minutes

b) Absolute Advantage: Jerome will finish 3 floral arrangements (30/10), whereas Anita can only finish 1 in 30 minutes.

c) Anita's opportunity cost is the time it will take her to make a delivery using the same time it takes her to finish one floral arrangement. In 30 minutes time, she can only make (30/40) 0.75 deliveries. Using 40 minutes of making a delivery, she can finish 1.33 (40/30) floral arrangements.

d) Anita's comparative advantage in making deliveries is based on her opportunity cost when compared with Jerome's opportunity cost of making deliveries.

Floral Delivery Total hours

Arrangement

e) Total time spent by

Anita 4 hrs 2 hrs 6 hrs

Jerome 4 hrs 2 hrs 6 hrs

Anita Jerome Total

Number of floral arrangements 8 (240/30) 24 (240/10) 32

Number of deliveries 3 (120/40) 4 (120/30) 7

Anita Jerome

Number of floral arrangements 0 36 (360/10) 36

Number of deliveries 12 (360/30) 0 12

4 0

3 years ago