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fomenos
2 years ago
13

An accrual of wages expense would have what effect on the balance sheet? A. Decrease liabilities and increase equity B. Increase

assets and increase liabilities C. Increase liabilities and decrease equity D. Decrease assets and decrease liabilities E. None of the above
Business
2 answers:
Salsk061 [2.6K]2 years ago
8 0

Answer: C. Increase liabilities and decrease equity

Explanation:

Wages payable are wages that a firm's workers have earned, but have not yet been paid and using the accrual method of accounting, it is recorded with an adjusting entry at the end of the accounting period. This allows the amount to be included as a current liability in the balance sheet. An accrual of wages expense increase wages payable (a current liability) and decreases retained earnings (equity) resulting from the decrease in net income. Therefore, An accrual of wages expense would increase liabilities and decrease equity.

nydimaria [60]2 years ago
5 0

Answer:

C. Increase liabilities and decrease equity

Explanation:

Accrued wages are the wages expense which is incurred and no been paid yet. This expense is recorded as follow

Dr.  Wages Expense   $xxx

Cr.  Wages Payable    $xxx

Expense ultimately settles in the equity balance through net income and retained earning. It decreases the net income, retained earning and equity balance as well.

On the other hand the wages payable is a liability account, due to credit nature a credit entry will increase its balance.

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An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:
charle [14.2K]

Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

6 0
3 years ago
Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. What’s
Bad White [126]
I'd say B, by leasing the car he'd save more money if it broke down or stopped functioning properly and if that happened he could lease a different car instead of paying multiple times to fix things that would most likely break down again because he owned it.
8 0
3 years ago
Purchasing cruelty free products can have a positive impact on
MakcuM [25]
The beauty industry and it’s healthier. Also it protects a lot of animals from getting the product tested on them
8 0
2 years ago
Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. Wha
gtnhenbr [62]

Answer:

The expected price after 1 year would be$55.5

Explanation:

According to the given data,

Price of the stock (Po) = $50

Dividend after 1year (D1) = $2

Equity cost of capital (KE) =15%

The formula for calculating the price after 1 year i.e.,(P1 ) is

                         

                          Po = (D1 + P1 )/ 1+KE                                      $50= ($2 + P1) / (1+0.15)

                        P1 = [$50(1.15)] - $2 = $55.5

6 0
2 years ago
Journalize the following merchandise transactions. The company uses the perpetual inventory system.
aliya0001 [1]

Answer:

a.

Accounts Receivable $17,300 (debit)

Cost of Goods Sold $12,600 (debit)

Sales Revenue $17,300 (credit)

Inventory $12,600 (credit)

b.

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Explanation:

The Perpetual Inventory system records the cost of inventory after every sale.

a. Sale of Sold merchandise on account

Recognize the Revenue and Cost of Sale as follows :

J1

Accounts Receivable $17,300 (debit)

Sales Revenue $17,300 (credit)

J2

Cost of Sales $12,600 (debit)

Merchandise $12,600 (credit)

b.Received payment within the discount period

Recognize the Cash receipts  to the extend of amount paid less cash discount of 2%

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Cash Receipt = $17,300 × 92% = $15,916

5 0
2 years ago
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