All categories

3 years ago

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.

You might be interested in

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9

murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

$C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\$

$46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\$

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0

3 years ago

Which of the following is the most profitable investment for a game shop earning 2 profit from every game sold

stira [4]

Answer: 3 profit

Explanation:

6 0

3 years ago

Masterson Company's budgeted production calls for 66,000 units in April and 62,000 units in May of a key raw material that costs

saw5 [17]

Answer:

The budgeted materials needed in units for April is 64,800 units

Explanation:

In order to calculate the budgeted materials needed in units for April we would have to use the following formula:

Budgeted Materials =Materials needed +ending inventory −beginning inventory available

To calculate the ending inventory we would have to use the following formula:

Ending inventory=0.3×Following month budgeted materials

Ending inventory=0.3×62,000

Ending inventory=18,600

Therefore, Budgeted Materials =66,000+18,600−19,800

Budgeted Materials= 64,800 units

The budgeted materials needed in units for April is 64,800 units

8 0

4 years ago

You work for a tech firm that wants to invest in some capital development projects that could potentially position the company a

Murljashka [212]

Answer:

B) User

Explanation:

The user role in a buying center is performed by an employee who will actually use the product in his daily work activities. Many times buying processes start with the users requesting the purchase of some new technology or equipment. They are the most qualified member of the buying center team when it comes to evaluating what type of product they need and if the options can be suitable or not.

8 0

3 years ago

Products or services that may be sought as alternative solutions-such as purchasing tax planning software rather than paying a C

Mamont248 [21]

Answer:

The answer is substitute products.

Explanation:

Substitute products are defined as two or more products that can be used for the same function for the same consumer. We can say that the tax planning software is a form of substitute product since it provides the same function that a certified public accountant also does. Buyers product refer to good made by manufacturers that are sourced by buyers to be sold by a distribution company. Competitive alternatives have no specific meaning exclusive to the term; the same applies to rivalry products.

4 0

3 years ago