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goldenfox [79]
2 years ago
8

Indicate the effect on the accounting equation and on the debit-credit analysis. Aug. 1 Opens an office as a financial advisor,

investing $8,000 in cash. 4 Pays insurance in advance for 6 months, $1,800 cash. 16 Receives $3,600 from clients for services performed. 27 Pays secretary $1,000 salary.
Business
1 answer:
Novosadov [1.4K]2 years ago
4 0

Answer: Please refer to Explanation

Explanation:

A. Aug. 1 Opens an office as a financial advisor, investing $8,000 in cash.

This is an investment by the owner so the following will happen.

The Cash account will INCREASE by $8,000

The Owner's Equity Account will INCREASE by $8,000 as well.

Cash is an Asset and when it INCREASES you DEBIT it. So DEBIT Cash by $8,000.

Owners Equity is an Equity Account and when INCREASED you CREDIT it. So Credit Cash by $8,000.

B. 4 Pays insurance in advance for 6 months, $1,800 cash.

This is a Prepaid Expense which means that it is an Asset because it represents that we are owed for service.

The Prepaid Insurance Account will Increase

The Cash Account will Decrease as the money from paid from it.

Prepaid Expense is an Asset which INCREASED so DEBIT it by $1,800.

Cash is an Asset as well and when Assets DECREASE you CREDIT them so CREDIT Cash by $1,800.

C. 16 Receives $3,600 from clients for services performed.

This is Revenue because the company is receiving money for service performed.

Revenue brings Cash into the business so the Cash account will INCREASE by $3,600

The Revenue Account will INCREASE by $3,600 to signify that Revenue came in.

Cash as an Asset will be DEBITED for $3,600 to signify that it has INCREASED.

Revenue will be CREDITED because it is an Equity Account to signify that it has INCREASED as well.

D. 27 Pays secretary $1,000 salary.

Payment of salary is an expense.

Expenses are paid from the Cash Account so this means that Cash has DECREASED by $1,000.

The Salaries and Wages Expense is INCREASED by $1,000.

Expenses are generally DEBITED when they increase so the Salaries and Wages Expense will be DEBITED by $1,000.

Cash as an asset will be CREDITED to reflect the DECREASE in the amount by $1,000.

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6 0
3 years ago
An example of a cost that is likely to have a direct relationship with products being manufactured is
scoundrel [369]

Answer:

An example of a cost that is likely to have a direct relationship with products being manufactured is:

direct cost of raw materials.

Explanation:

Other direct costs that affect the cost of the products directly are direct labor costs and direct overhead costs.  They are traceable to the products being manufactured.  This is why they are called direct costs.  They can be attributed to the unit of production.  The opposite is the indirect  costs of raw materials, labor, and overheads.  These costs cannot be traced to units of the product being produced.

7 0
3 years ago
PLEASE ANSWER ASAP! Which of the following statements are true about brokerage firms? (Select all that apply.)
Zepler [3.9K]

Answer:

C and E.

Explanation:

Brokerage Firms are those firms that acts an a middlemen between the buyer and a seller to expedite a transaction. It is a financial institutions that ease the buying and selling of securities. These companies also charge a amount of fee or compensation on the completion of transactions. A brokerage firm is also known as brokerage company or brokerage.

There are three types of brokerage firms. They are:

  1. Full-service brokerage
  2. Discount brokerage
  3. Robo-advisors.

The discount brokerage provides less comprehensive services than the traditional one or the full-service brokerage. These services are provided via online as well by discount brokerage.

So, from the given options the correct options are C and E.

6 0
3 years ago
Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from h
muminat

Answer:

The graph has been attached.

Explanation:

a. Please see attached graph with the shaded budget set labelled A

b. Please see attached. Curve C; D and E are the indifference curves. The most suitable one would be D since it is on the budget curve. E is not maximum utility and C is unattainable given his budget of $20.

c.  U (X,Y) = X + 2Y

At C, Utility = 10 + 2(10) = $30. That is above his budget

At D, Utility = 10 + 2(5) = $20. This is within his budget. – most utility.

At E, Utility = 5 + 2(5) = $15. This is below his budget.  

The Indifference curve that gives most utility is D, where cheese is 10 and cocoa is 5 units.

8 0
3 years ago
Suppose the civilian noninstitutionalized working age population is 35.9 million in Laborland, 4.6 million are working part time
frozen [14]

Answer:

The answers are:

A) 25.23 million people

B) 70.28%

C) 4.92 million people

D) 19.50%

Explanation:

Laborland's total labor force can be calculated by adding those who are employed and those who are unemployed but were searching for a job during the last month.

  • 4.6 million (part-time employed) + 15.71 million (full-time employed) + 3.2 million (looked for a job two weeks ago) + 1.72 million (looked for a job between two and four weeks ago) = 25.23 million people

Laborland's labor force participation rate can be calculated by dividing the labor force by the total population.

  • (25.23 million / 35.9 million) x 100% = 70.28%

Laborland's total unemployed can be calculated by adding the number of people without a job that searched for a job during the last month.

  • 3.2 million + 1.72 million = 4.92 million people

Laborland's unemployment rate can be calculated by dividing the total number of unemployed people by the total work force.

  • (4.92 million / 25.23 million) x 100% = 19.50%

6 0
3 years ago
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