Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.

Cash $ 8,600 Accounts receivable 16,500 Office supplies 2,000 Trucks 173,000 Accumulated depreciation—Trucks $ 35,638 Land 75,00

True [87]

Answer:

Net Income $23,588

Retained Earnings $140,088

Explanation:

To calculate the value of the retained earning at the end of the next year it's necessary to find the income of the current year and then deduct the dividends paid during the year, the remaining value adds to the retained earnings.

This value that we get of retained earnings at the end of the year, it's the value missing at the end of the year to explain the accounting equation of Assets = Liabilitites + Equity

Income Statement Blink

Trucking fees earned $ 135,000

Depreciation expenses -$ 22,987

Salaries expenses -$ 63,315

Office Supllies expenses -$ 13,500

Repair expenses -$ 11,610

Income $ 23,588

Retained Earnings Report

Opening retained earnings $ 135,500

Add: Net Income $ 23,588

Subtotal $ 159,088

Less: Dividens -$ 19,000

Total $ 140,088

BALANCE SHEETS Dec 31

Cash $ 8,600

Accounts Receivable $ 16,500

Office Supplies $ 2,000

TOTAL CURRENT ASSETS $ 27,100

Equipment $ 173,000

Accum Depreciation Truck -$ 35,638

Land $ 75,000

TOTAL NONCURRENT ASSETS $ 212,362

TOTAL ASSETS $ 239,462

Accounts Payable $ 12,600

Interest Payable $ 3,000

TOTAL CURRENT LIABILITIES $ 15,600

Long Term Notes Payable $ 52,000

TOTAL NONCURRENT LIABILITIES $ 52,000

TOTAL LIABILITIES $ 67,600

Common Stock $ 31,774

Retained Earnings $ 140,088

TOTAL EQUITY $ 171,862

7 0

3 years ago

The consumer price index for Planet Econ consists of only two items: books andhamburgers. In 2010, the base year, the typical co

Stels [109]

Answer:

The consumer price index for 2015 on Planet Econ is 1.25

Explanation:

The formula for computing the consumer price index is given below:

= (Total cost in the current year) ÷ (total cost in the base year)

where,

Total cost in the current year equals to

= (Base year book quantity × current year book price) + (base year hamburgers quantity × current year hamburgers price)

= 10 books × $30 + 25 hamburgers × $3

= $300 + $75

= $375

we use the base year quantity for computing the total cost for the current year.

And, the Total cost in the base year equals to

= (Base year book quantity × base year book price) + (base year hamburgers quantity × base year hamburgers price)

= 10 books × $25 + 25 hamburgers × $2

= $250 + $50

= $300

Now put these values to the above formula

So, the answer would be

= $375 ÷ $300

= 1.25

Hence, The consumer price index for 2015 on Planet Econ is 1.25

4 0

3 years ago

You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and posi

Mademuasel [1]

Answer:

A) its value proposition

Explanation:

A good brand value proposition should state all the benefits of your product or service since it is the promise that your brand (or company) is delivering to potential or current customers in order for them to purchase your product or service instead of the competition's.

4 0

3 years ago

Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella $150,000 and assume her mortgage on the la

Anna11 [10]

Answer:

The cost basis for the land is equal under both options.

Explanation:

If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.

The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0

3 years ago

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods ag

Alina [70]

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. insurance certificate.

Explanation:

A certificate of insurance is a document used to provide information on specific insurance coverage.
The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
A certificate of insurance is requested when liability and large losses are a concern.
Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured

5 0

3 years ago