All categories

3 years ago

Mr. Decker invested $20,000 in cash in his business. How does the company record the investment?

Business

1 answer:

Dvinal [7]3 years ago

4 0

Answer:

The company records the investment by the entry:

debit Cash and credit Owner's Equity

Explanation:

Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.

In the case, the company that he invested received cash from Mr. Decker.

The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:

Debit Cash $20,000

Credit Owner's Equity $20,000

You might be interested in

A source can either be primary or secondary. True or false

horsena [70]

True, Is the correct answer.

5 0

3 years ago

Read 2 more answers

On october 31, 2009, sky co. borrowed $16 million cash and issued a 7-month, noninterest-bearing note. the loan was made by star

mash [69]

Answer: Sky's effective interest rate on this loan is 8.39%.

In this question, we assume that interest is compounded annually.

Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.

Face value of the note $16 million

Discount Rate p.a 8%

Tenure of the note 7 months

$Discount on Note = Face Value * Discount Rate * \frac{Tenure in months}{Months in a year}$

$Discount on Note = 16 * 0.08 * \frac{7}{12}$

$Discount on Note = 0.746666667million$

[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]

$Loan Amount received by Sky = 16 - 0.746666667$

$Loan Amount received by Sky = 15.25333333 million$

So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:

$Seven month Interest Rate = \frac{Interest}{Loan amount}$

$Seven month Interest Rate = \frac{0.746666667}{15.25333333}$

$Seven month Interest Rate = 0.048951049$

From this we can work out the effective interest rate for Sky as follows:

$Sky's Effective Interest Rate = Seven month interest rate * \frac{12}{7}$

$Sky's Effective Interest Rate = 0.048951049* \frac{12}{7}$

$Sky's Effective Interest Rate = 0.083916084$

4 0

3 years ago

You are a loan officer for National Bank. You have a loan application submitted by a company for $50,000. This company just got

Natali5045456 [20]

Answer:

cash 5000

Explanation:

I think thats right

7 0

2 years ago

Sean bought a rare stamp for $15.he was told that it would increase in value by $11 each year.what will the stamps value be afte

Lynna [10]

The answer is 59$. it's mental math dude just multiply 11 by 4 and then add it to 15

8 0

3 years ago

Which of the following statements regarding direct selling is most accurate? Multiple Choice Unlike other forms of nonstore reta

scoundrel [369]

Answer:

Direct selling succeeds because it provides customers with a social shopping experience.

Explanation:

Direct selling: In business, the term "direct selling" is described as a process of selling different products to the specified customers directly in a "non-retail environment". However, the products that are being sold through "direct sales" are generally not found in some typical locations, that means finding a specific rep or distributor is considered as a single method of buying different services or products.

7 0

3 years ago