Answer:
D. 189,000 = NA + 189,000 NA - NA = NA 189,000 FA
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity. This may be expressed mathematically as
Assets = Liabilities + Equity
While assets include fixed assets, cash, inventories, account receivables etc, liabilities include accounts payable, loans payable, accrued expenses etc.
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
When 9,000 shares of no-par stock issued for $17 per share increases to $21, this means that the additional amount
= ($21 - $17) × 9000
= $36,000
Amount to be collected from the issue
= $21 × 9000
= $189,000
This will result in an increase in cash and an increase in owners equity (the respective debits and credits).
Answer:
True
Explanation:
The statement is true.
Suppose a consumer purchases a bundle of goods, say 40 units with his given money income of $1000.
Now, if there is a fall in the price level of the goods then this will increase the purchasing power of the consumer and hence he will be able to buy more quantity of goods, say 60 units with the same level of money income i.e $1,000.
This illustrates that as the price level falls, the purchasing power of the consumer increases or we can say that holders of money become richer.
I believe the answer is Consumption
Answer:
A. is subject to all provisions of Rule 144.
C. Must file a Form 144 within 90 days of selling.
Explanation:
In the question, the husband owns 20% and his wife holds 5% of the equity. However, the wife plans to put her own holding up for sale. The wife is subject to all the provisions of Rule 144. In addition, before she can proceed with her plan, she needs to fill the Form 144 and the form must be filled not more than 90 days after selling the holding.
Answer:
Jarrod exclude from his gross income of $13,500
Explanation:
The following items which are excluded from the gross income are:
1. Tuition = $12,000
2. Books and supplies = $1,500
The total amount would be equal to
= $12,000 + $1,500
= $13,500
These items would be excluded because the deduction is allowed for these items. Whereas, the room and personal expenses are taxable. Hence, it would be included in the gross income
