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White raven [17]
3 years ago
8

Johna's Plant Nursery Company pays the salaries of its two employees. How will this transaction affect the accounting equation?

Select all that apply.
Expenses will be decreased.Equity will be increased.Equity will be decreased.Salaries expense will be increased.
Business
1 answer:
Dvinal [7]3 years ago
8 0

Answer:

Equity will be decreased.

Salaries expense will be increased.

Explanation:

As paid salaries are an expense, the total amount of <em>salaries expense</em> will certainly increase (no matter if it is paid or not). Since salaries expense is not a balance sheet item, it has to be represented through an item in it. Equity  will be decreased through the decrease of retained earnings (equity item), which is the result of increased expenses.

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During 2017, Bolton Corporation acquired a mineral mine for $1,500,000 of which $200,000 was determined to be the salvage value
MAVERICK [17]

Answer:

$162,500

Explanation:

Depletion is used to expense the cost of extracting natural resources.

Depletion expense = (unit extracted in 2017 / total units that could be extracted) x (Cost- salvage value)

(1,500,000 / 12,000,000) x ( $1,500,000 - $200,000) = 0.125 × 1,300,000 = $162,500

I hope my answer helps you

8 0
3 years ago
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Four ways by which your choice of reading material can affect your writing
Liula [17]
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How Reading Affects Writing
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Grammar
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Vocabulary and Creativity
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7 0
3 years ago
Carter &amp; Carter is considering setting up a regional lockbox system to speed up collections. The company sells to customers
barxatty [35]

Answer:

c. $40,000

Explanation:

Reduction in Account Receivables          $500,000

($2,500,000 * 20%)

<u>* Interest rate                                               11%          </u>

Annual saving                                             $55,000

Less: Annual cost of system                     <u>-$15,000</u>

Pretax Net annual savings                         <u>$40,000</u>

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Outlines are effective because they
storchak [24]
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