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2 years ago

David Segal started a business. During the first month (October 20--), the following transactions occurred.

Business

1 answer:

zloy xaker [14]2 years ago

8 0

Answer:

Assets = Liabilities + Owner’s Equity (Capital – Drawing + Revenues – Expenses) = $17,017

Explanation:

Note: See the attached xlsx file for the effect of each transaction on the individual accounts of the expanded accounting equation and the report of the total of each element.

In the attached xlsx file, transaction (c) is treated in such a way that the insurance for the month of October 20—is accounted for under the following:

Prepaid Insurance = One-year insurance premium - (One-year insurance premium / Number of months in a year) = $1,000 - ($1,000 / 12) = $1,000 - $83 = $917

Expenses = One-year insurance premium / Number of months in a year = $1,000 / 12 = $83

Download xlsx

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On December 31, Year 10, Brown Company changed its inventory valuation method from the weighted-average method to FIFO for fi

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Answer: Overstatement of profit by $8000

Explanation:

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3 years ago

Valet Corporation began operations in 2021. An analysis of Valet's debt securities portfolio acquired in 2021 shows the followin

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Answer:

$20,000

Explanation:

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Using this formula

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2 years ago

Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual

julsineya [31]

Answer:

Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.

Explanation:

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3 years ago

If a consumer is waiting to buy a sweater he or she found at a department store until after the holiday season, which factor is

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3 years ago

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Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 l

Sati [7]

Answer:

Loss on exchange is -$7,800

initial value of tractor is $42,200

Gain on exchange is $8000

Initial value of tractor is $58,000

Explanation:

The amount of gain or loss recognizable on the exchange is the difference between the fair value of the old asset and its book value

Loss on the asset=$10,200-$18,000=-$7,800

Initial value of the new tractor=fair value of the old tractor+cash payment

Initial value of the new tractor=$32,000+$10,200=$42,200

If fair value were $26,000

gain on the exchage=$26,000-$18,000=$8,000

Initial value of the new tractor=$32,000+$26,000=$58,000

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3 years ago