1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
madreJ [45]
2 years ago
11

Show the effect of each transaction on the three basic accounting elements by indicating the dollar amount of the increase or de

crease under the proper element heading. Compute the resulting accounting equation.
a. Owner invested $16,500 cash in the business.
b. Paid premium for two-year insurance policy, $1,500.
c. Purchased a van valued at $35,000 with $5,000 down payment; the balance to be paid over three years.
d. Paid the rent for the month, $900.
e. Purchased $470 of supplies for cash.
f. Cash sales for the month, $8,750.
g. Billed credit customers $14,200 for monthly services.
Business
1 answer:
Komok [63]2 years ago
7 0

Answer:

Assets = Liabilities + Owner’s Equity = $67,800

Explanation:

Note: See the attached excel file for the Effect of Each Transaction on the Three Basic Accounting Elements.

From attached excel file, the resulting accounting equation can be computed as follows

Assets = Total Cash + Total Insurance Prepaid + Total Van + Total  Supplies + Total Accounts Receivable = $17,380 + $750 + $35,000 + $470 + $14,200 = $67,800

Liabilities = Total Accounts Payable = $30,000

Owner’s Equity  = Total Capital + Total Retained earnings = $16,500 + $21,300 = $37,800

Liabilities + Owner’s Equity = $30,000 + $37,800 = $67,800

Therefore, we have:

Assets = Liabilities + Owner’s Equity = $67,800

Download xlsx
You might be interested in
URGENT 20poinThe income of the individual falls under one main category​
Zinaida [17]

Answer:

ok

Explanation:

ok what's the questioned

7 0
2 years ago
Read 2 more answers
Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answe
Fudgin [204]

Answer:

(a) Real Interest Rate   = -1 %

(b) Real Interest Rate   = -2.4 %

Explanation:

Real Interest Rate = (1+ Nominal Interest rate)/(1+Inflation Rate) -1

 (a)Real Interest Rate = (1+0.01)/(1+0.02)-1

                                    = -1 %

 (b) Real Interest Rate = (1+0.005)/(1+0.03) -1

                                      = -2.4 %

Real Interest Rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.

8 0
2 years ago
Based on expected production of 6,000 units, a company reports the following costs: direct materials cost of $4 per unit, direct
Akimi4 [234]

Answer:

Net operating income= $32,000

Explanation:

The a<u>bsorption costing method</u> includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

<u>First, we need to calculate the unitary fixed overhead and unitary total cost:</u>

Unitary fixed overhead= 60,000 / 6,000= $10

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 4 + 8 + 3 + 10

Unit product cost= $25

<u>Now, the net operating income:</u>

Net operating income= Sales - COGS - Total variable selling and administrative expenses

Net operating income= 4,000*40 - 25*4,000 - (2*4,000 + 20,000)

Net operating income= 160,000 - 100,000 - 28,000

Net operating income= $32,000

8 0
2 years ago
The government sets an allowable amount of pollution and lets companies buy and sell the right to release this pollution in a co
Margaret [11]

Answer:

D. tradable permits

Explanation:

Tradable permits also known as emissions allowance is an attempt at regulating pollution through the market system. tradeable permit gives right to the bearer of such permit to emit pollution up to a limited amount and if such permit is partially used or for one reason or the other, it is unused, it can be traded or negotiated to a willing buyer.

7 0
3 years ago
At December 1, 2017, Tamarisk, Inc. Accounts Receivable balance was $17470. During December, Tamarisk had credit sales of $46800
tatiyna

Answer:

$26,830

Explanation:

Given that

Accounts Receivable balance = $17,470

Credit sales = $46,800

Collected accounts receivable = $37,440

The computation of Accounts Receivable balance is given below:-

= Accounts Receivable balance + Credit sales - Collected accounts receivable

= $17,470 + $46,800 - $37,440

= $64,270 - $37,440

= $26,830

7 0
2 years ago
Other questions:
  • Closing entries may be prepared from all of the following except
    14·1 answer
  • The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale
    15·1 answer
  • Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMs shows 300 check-outs, 900 stayovers, 250 transien
    14·1 answer
  • A customer got a great haircut at a salon and went back six weeks later to the same person to get a second haircut. This time, t
    14·1 answer
  • The temperature in Gavin’s oven is a sinusoidal function of time. Gavin sets his oven so that it has a maximum tem- perature of
    10·1 answer
  • Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution a
    8·1 answer
  • Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of steali
    9·1 answer
  • Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for th
    11·1 answer
  • Which repayment plan will you be placed on automatically?
    12·1 answer
  • If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve betwee
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!