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
Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. The comp
Elden [556K]

Answer:

Contribution margin income statement for the year ended December 31, 2019

Sales (10,000×$175)                              1,750,000

Less Variable Costs (10,000×$116)      (1,160,000)

Contribution                                             590,000

Less Fixed Costs                                    (354,000)

Net Income/(loss)                                    236,000

Explanation:

Variable Costing Income = Contribution - Fixed Costs

8 0
3 years ago
It is blank for motorcycles to pass between cars in the middle of traffic lanes
Natali [406]
<span /><span>It is not okay for motorcycles to pass between cars in the middle of traffic lanes.</span>
5 0
3 years ago
The following scenario applies to the next three questions. At the start of the current period, Alberich Jewelers had an invento
kolbaska11 [484]

Answer:

Alberich Jewelers

The gross profit that Alberich should report is 760.

Explanation:

a) Data and Calculations:

Cost of gold ring purchased first = $640

Cost of gold ring purchased next = $720

Cost of gold ring purchased recently = $750

Sale of one gold ring = $1,400

Using the FIFO method of inventory, the gross profit for the gold ring sold is based on the first gold ring purchased, as follows:

= Sales Revenue - FIFO cost of inventory

= $1,400 - $640

= $760

6 0
2 years ago
(c) the limits of the terms of trade are determined by the comparative cost conditions in each country before trade: 1a
Lorico [155]

The limits of the terms of trade are determined by the comparative cost conditions in each country before trade:

Less commerce occurs as a result of partial specialization and rising costs than when costs are constant. The cost advantage one country has over another serves as the foundation for commerce. This explains why some countries make things that they also import since they are able to do so for less money than their trading partners.

What is comparative cost ?

Comparative costs refers to comparing, using a comparative costs approach, the costs of signing into a privatized contract to the expenses of the state maintaining to provide the services that are the subject of the contract.

Therefore,

Less commerce occurs as a result of partial specialization and rising costs than when costs are constant. The cost advantage one country has over another serves as the foundation for commerce. This explains why some countries make things that they also import since they are able to do so for less money than their trading partners.

To learn more about comparative cost from the given link:

brainly.com/question/8141905

3 0
2 years ago
During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balan
lidiya [134]

Answer:

$45,000

Explanation:

Given the above information, the account balance on February 1 is computed below;

Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account

= $59,900 + $186,500 - $201,400

= $45,000

Therefore, the account balance on February 1 is $45,000

5 0
3 years ago
Other questions:
  • Suppose a company has $200 in fixed costs and $40 per unit in variable costs. The company sold 10 items for a total of $1,000. H
    10·1 answer
  • Excerpt from Areojet Corporation Per Unit Per Month Selling price $ 200,000 Direct materials 40,000 Direct labor 10,000 Variable
    15·1 answer
  • A fixed cost: Does not change with changes in the volume of activity within the relevant range. Requires the future outlay of ca
    13·1 answer
  • Corcoran Corp. pays a constant $7.10 dividend on its stock. The company will maintain this dividend for the next 10 years and wi
    9·1 answer
  • Explain the theory of purchasing power parity (ppp). based on this theory, what is a general forecast of the values of curren­ci
    13·1 answer
  • What happened in 1935 with the United States Congress surrounding employee benefits?
    12·1 answer
  • Which of the following is an example of an intrinsic reward? employee recognition employee stock option gainsharing bonus profit
    12·1 answer
  • Sidney works as a marketer at a fast-paced company selling handheld barcode scanner tools. Most of the sales had begun online th
    8·1 answer
  • Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. W
    9·1 answer
  • You are borrowing money to buy a car. If you can make payments of $320 per month starting one month from now at an interest rate
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!