Answer:
A. The company's assets exceed liabilities by $60,000
Explanation:
According to the accounting equation the Assets are equal to the liabilities plus the equity. With the information given in the exercise you must use this equation.
Assets = liabilities+ Equity
Assets= Liabilities + $60.000
Assets- Liabilities = $60.000
As you can see, you can conclude that the assets are grater that the liabilities only by $60.000.
There are lack of information for the B option, C Option and D option, and you can't make that type of statement without more information about the companies operations.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $8,400
To Prepaid Rent $8,400
(Being advance cash is received for four-month rent)
Since we have to record the journal entry, so we debited the cash account as the advance cash is received and credited the prepaid rent account as the cash is received for four-month rent
Answer:
Parent's beginning of the year Retained Earnings
Explanation:
"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.
When the investor has a significant influence over the operating and financial results of the investee, it can directly affect the value of the investor's investment. The investor records its initial investment in the second company's stock as an asset at historical cost. Under the equity method, the investment's value is periodically adjusted to reflect the changes in value due to the investor's share in the company's income or losses. Adjustments are also made when dividends are paid out to shareholders."
Reference: Tuovila, Alicia. “Equity Method Definition.” Investopedia, Investopedia, 8 Oct. 2019
Answer:
D, Instrumentality
Explanation:
Instrumentality can be defined simply to mean the importance of a person or thing to situations/events.
From the above question, Brent believes in his performance as being great in the restaurant and as such expect that his importance/contribution in the restaurant will be appreciated and noticed enough to expect a salary increase.
Cheers.