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
poizon [28]
3 years ago
9

Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with

opening balances: Multiple Choice
Debit: Capital Stock, Credit: Opening Balance Equity

Debit: Opening Balance Equity, Credit: Capital Stock

Debit: Accounts Receivable, Credit: Capital Stock

Debit: Accounts Payable, Credit: Opening Balance Equity
Business
1 answer:
weeeeeb [17]3 years ago
7 0

Answer:

Option B. Debit: Opening Balance Equity, Credit: Capital Stock

Explanation:

When we are shifting our traditional record keeping work to QuickBooks, the opening entry are the increase in all the balance sheet accounts and this is adjusted against the opening balance equity account. So this means that Capital Stock must be increased which must be credited, Accounts receivables must be debited, cash, bank, etc are adjusted against the opening balance equity.

So the correct double entry would be:

Dr Opening Balance Equity   XX

Cr Capital Stock                              XX

So we can see that the capital stock is adjusted against opening balance equity whereas the option D is incorrect because accounts payables are increased which results in debit entry of opening balance equity.

You might be interested in
What not true about lockout tagout
Art [367]
It’s not true that Lockout/Tagout is to be used only in extreme cases of potential electrical hazard.

Hope this helps answer your question.
~Brooke❤️
6 0
3 years ago
What is one of the best ways to determine what kind of business you'll enjoy? A. Buy an established business. B. Create one rela
hammer [34]
The answer would be (B. To create one related to what you do in your free time) To be interested/motivated  in what you are doing, it has to grab your attention, you have to appreciate the topic, best way to make a business you'll enjoy is to create one based around one of you favorite pass times, hobbies, passions, etc...<span />
3 0
3 years ago
Read 2 more answers
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending i
Lyrx [107]

Answer:

a. An additional layer of $12,760 is added to the 12/31/2021 balance.

Explanation:

The computation of the inventory balance is given below:

2021 Base year cost is

=  $131,040 ÷ 1.05

= $124,800

Additional layer is

= $124,800 - $101,600

= $23,200

2022 Base year cost is

= $150,040 ÷ 1.10

= $136,400

Additional layer is

= ($136,400 - $124,800 ) × 1.10

= $11,600  1.10

= $12,760

Therefore the first option is correct

3 0
3 years ago
If you’re tired of managing a large number of work utilities to perform specialized tasks outside the office, it might be worth
miskamm [114]
C.
Smartphone everything is on technology
3 0
3 years ago
Read 2 more answers
At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up
TEA [102]

Answer:

d. net income for the year will be overstated.

Explanation:

The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are

Debit Prepaid rent

Credit Cash account

On subsequent use of the rent, the required entries are

Debit Rent expense

Credit Prepaid rent

As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.

6 0
3 years ago
Other questions:
  • Flare Co. manufactures textiles. Among Flare's 2016 manufacturing costs were the following salaries and wages: Loom operators $
    9·1 answer
  • Patagonia was one of the first companies to offer employees a child care program. plans such as child care, sick-leave pay, vaca
    15·1 answer
  • Once a firm is able to identify the market and is able to design products or services to meet its needs, the next step is to det
    11·1 answer
  • Ignatenko Company purchased office supplies costing $5,000 and increased Supplies for the full amount. Supplies on hand at the e
    12·1 answer
  • The Netherlands was the first nation built on _____. socialism capitalism communism democracy
    5·2 answers
  • Other factors that should be considered before the final decision is made​ are: ​(Choose all that​ apply.) A. What will be the e
    10·1 answer
  • Ayayai Mining Company purchased land on February 1, 2020, at a cost of $1,038,200. It estimated that a total of 57,900 tons of m
    11·1 answer
  • Plan B” is the label used to describe what you would do if your job ended and might include​ a. ​learning new skills. b. ​develo
    14·1 answer
  • 2. What should Parker have done during the sales presentation when Kitchel told him that he needed to think it over?
    15·1 answer
  • Two reasons why collateral is important to a borrower
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!