1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
goldenfox [79]
3 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]3 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.

You might be interested in
Carlisle Enterprises, a specialty pharmaceutical manufacturer, has been losing market share for three years because several key
Olegator [25]

Answer:

It should obtain at least:  $  17,363,986.04

Explanation:

we have several cash flow of different magnitude. As thisi s a finite sum of cash flow, we solve using present value of each lump sum using our WACC as discount rate:

\frac{Nominal}{(1 + rate)^{time} } = PV

\frac{8,500,000}{(1 + 0.15)^{1} } = PV

\frac{7,500,000}{(1 + 0.15)^{2} } = PV

\frac{5,000,000}{(1 + 0.15)^{3} } = PV

\frac{2,000,000}{(1 + 0.15)^{4} } = PV

\frac{500,000}{(1 + 0.15)^{5} } = PV

Year      Nominal Cash Flow Present Value

1   8,500,000.00      7,391,304.35

2   7,000,000.00    5,293,005.67

3   5,000,000.00       3,287,581.16

4   2,000,000.00      1,143,506.49

5      500,000.00       248,588.37

Total Present value  17,363,986.04

8 0
3 years ago
A construction firm cannot obtain the necessary permits to begin building a shopping mall until it can show it either has or wil
Crazy boy [7]

Answer: Loan commitment or credit line

Explanation: A loan commitment refers to a promise under which the lender commit to provide a loan of a specified amount to the borrower. Similarly, a credit line refers to the amount of money that a credit card holder can use from that account.

In the given case, the construction firm wants to show that they can have necessary funding. Thus, they can use above tools to show that they have the back of banks in case of providing funding.

Thus, the correct option is C or D .

8 0
3 years ago
. Says law says? Do you agree or disagree with Jean? (Jean Baptiste Say) EXPLAIN. (hint...loanable funds market
Drupady [299]
To answer the question above as to Jean's explanation on Say's Law or The Law of Market.. I agree that "if there is a surplus of goods, there must be unmet of demand for others". Jean's explanation is more of a Capitalist style of management. 
5 0
3 years ago
Which of the following is a difference between outsourcing and inshoring?
Strike441 [17]

Answer: Option (A) is correct.

Explanation:

Outsourcing is known as the agreement under which one organization hires or employee another organization in order to be responsible existing or  for a planned activity that tends to be done internally, and at times involves transferring workers and assets from an organization to another.

Inshoring is referred to as the opposite of Offshoring. It is known as the process or method of moving an organization or its business operation from abroad to a local country.  It is also referred to as outsourcing of workers domestically.

4 0
3 years ago
IBN has two manufacturing facilities, one in New York and one in Oklahoma. Marjorie has worked in the Oklahoma plant for 15 year
gtnhenbr [62]

Answer:

Yes, there is a violation of the Equal Pay Act because Hank's salary ($14 per hour) is higher than Marjorie's ($12 per hour).

Explanation:

The Equal Pay Act of 1963 basically establishes that no employer can pay a higher salary to an employee of one sex and pay a lower salary to an employee of the opposite sex. Theoretically this law protects both women and men, since the provision doesn't establish a specific sex that is protected.

In this case, it is OK for Ellen to earn a higher salary than Hank because she has more experience and she was transferred to the New York facility. But Hank shouldn't earn a higher salary than Marjorie because she is a more experienced worker.

This law doesn't consider the differences between Ellen's salary and Marjorie's.

3 0
3 years ago
Other questions:
  • Consider the relative liquidity of the following assets:
    9·1 answer
  • What are the three aspects of corporate organization according to the economics of organizational architecture article?
    13·1 answer
  • In the mid 1990s, a radical new introduction to the mortgage industry was made that would revolutionize the way in which most ho
    10·1 answer
  • In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the phi
    6·1 answer
  • Breezy Company is disposing of equipment that was originally purchased for $550,000 and has $145,000 of accumulated depreciation
    5·1 answer
  • Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,
    8·1 answer
  • 9. Calculating the price elasticity of supply Rajiv is a college student who lives in Chicago and does some consulting work for
    12·1 answer
  • ABC Ltd. purchased a new 3-D printer for $500,000 at the beginning of year 1. Although this printer is expected to last for 10 y
    6·1 answer
  • One key difference between an oligopoly market and a competitive market is that oligopolistic firms.
    8·1 answer
  • When J.K. Rowling exerts copyright ownership of her literary works, she creates a monopoly by restricting Group of answer choice
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!