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svetlana [45]
3 years ago
6

Dr. Peabody contributed $5,000 in cash to the company. Which of the following statements is correct?

Business
1 answer:
Vinvika [58]3 years ago
5 0

Answer:

D. Cash is debited $5,000; capital is credited $5,000.

Explanation:

The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides.  Cash is an asset, while capital is equity.

An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.

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On October 1, Year 1, Jason Company paid $3,600 to lease office space for one year beginning immediately. What is the cash outfl
Mars2501 [29]

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700

<h3>What is cashflow?</h3>

This is the amount of cash , which a company receives or gives out by the way of payments to its creditors.

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence  

Monthly amortization

= $3,600 / 12

= $300

Rent expense for year 1

= $300 × 3

= $900

The ending balance in the prepaid rent account will be  

= $3,600 - $900

= $2,700

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

Hence, the cash outflow for rent that would be reported on the Year 1 statement of cash flows is $2,700

Learn more about cashflow here : brainly.com/question/14723642

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5 0
2 years ago
Gross Private Domestic Investment 75, U.S. Imports 22, Personal Consumption Expenditures 250, Consumption of Fixed Capital 25, N
Rama09 [41]

Answer: Gross Domestic Product (GDP) = 250 + 75 - 22 = $303 billion

Explanation:

Gross Private Domestic Investment 75

U.S. Imports 22

Personal Consumption Expenditures 250

Gross Domestic Product (GDP) = 250 + 75 - 22 = $303 billion

7 0
3 years ago
Sally, the manager at a large restaurant chain, was just given information from the corporate office on how to increase sales in
Illusion [34]

Answer: C. Measure performance

Explanation: Controlling is the managerial functions of planning, staffing, organizing, implementing and directing. It helps to check the errors and take corrective action, so it is known as an important function of management. It is necessary to ensure that the desired results are achieved.

The control process is the system that allows setting, measure, match and tweak any business activities such as production, packaging, delivery and more. ... The control process is the functional process for organizational control that arises from the goals and strategic plans of the organization.

6 0
3 years ago
Read 2 more answers
. What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near futur
Temka [501]

Answer:

A.

Explanation:

The demand for some of products have a relationship, where the quantity demanded for one product depends somehow on the prices of both.

If two goods are substitutes, an increase in the price of one increases the demand of the other.

The demand for brand A depends on its price and also in the price of its main competitor.

In this case, shotgun-shell  and shotgun-shell ammunition are substitutes.

6 0
3 years ago
Gramps purchased a joint survivor annuity that pays $500 monthly over his remaining life and that of his wife, Gram. Gramps is 7
Bezzdna [24]

Answer:

$150

Explanation:

Calculation of how much income that Gramps will recognize on the first payment.

Since joint survivor annuity has 23.1 as the annual return multiple .

Calculation for Expected return

Expected return =Annual payment *Return multiple

($500*12) =$6,000

$6,000×23.1

=$138,600

Therefore :

$97,020/$138,600

=0.7×100

=70%

The 70% of each of the payment will be the return of capital while the 30%(100%-70%) will be the income.

Hence the first payment be:

30%×500

=$150

Therefore the amount of income that Gramps will recognize on the first payment will be $150

6 0
3 years ago
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