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Natali5045456 [20]
3 years ago
5

A flood damaged several vans belonging to a nongovernmental, not-for-profit organization. A professional mechanic repaired the v

ans at no charge, restoring them to the condition they were in just prior to the flood. How should the van repairs be recognized in the financial statements?a. Only a note disclosure would be required. b. As both an increase in the equipment account and an increase in contributions from donated services.c. As a decrease in accumulated depreciation- equipment, and an increase in contributions from donated services.d. As an increase in expenses and an increase in contributions from donated services.
Business
1 answer:
Westkost [7]3 years ago
5 0

Answer:

b. As both an increase in the equipment account and an increase in contributions from donated services.

Explanation:

When the flood damages the vehicles there was a loss in the value of the organisation's equipment. The actor of restoring it to its previous state will require an addition to equipment account. So there will be an increase in equipment.

The services provided by the mechanic were free and will be recorded as a donated service. This is an increase in contributions from donated services.

There is no expense recorded as the services were performed for free.

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Thus, from the above we can conclude that the correct option is C.

4 0
3 years ago
NEED HELP ASAP THANK YOU
solniwko [45]

Answer:

a

Explanation:

5 0
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N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resol
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Answer:

Credit Treasury Stock $20,000

Explanation:

When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i.e. in this case we acquire the treasury stock at a price of $20.

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6 0
3 years ago
What is the most likely reason some people avoid all carbohydrates in order to lose weight?
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Falcon Co. produces a single product. Its normal selling price is $26 per unit. The variable costs are $16 per unit. Fixed costs
xxTIMURxx [149]

Answer:

Effect on income= $10,290 increase

Explanation:

Giving the following information:

Falcon can handle the special order, and for this order, a variable selling cost of <u>$2 per unit would be eliminated.</u>

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3 years ago
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