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
mars1129 [50]
2 years ago
8

g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale

, $15,000 was stillowed to First National Bank on that purchase. After the sale, The Melville Company paid off the loan to First National Bank. What is the effect of thesale and the payoff of the loan on the accounting equation
Business
1 answer:
Tresset [83]2 years ago
8 0

Answer and Explanation:

The impact on the sale and the payoff the loan in an accounting equation is as follows:

But before that

The following journal entries should be recorded

Cash $60,000    

        To Land $40,000

        To Profit on sale of land $20,000

(Being the sale of the land is recorded)

Loan Dr $15,000

       To Cash $15,000

(Being the loan is paid)

Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000

You might be interested in
True or false: Accumulated Depreciation is a contra-account to a long-lived asset account, such as Equipment. This means that it
GrogVix [38]

Answer:FALSE

Explanation: Accumulated depreciation is a negative account (contra-account) which Describes the total depreciation amount allotted to an asset since it is put into use. Accumulated depreciation is not added to the balance of the long lived asset in the balance sheet.

When an organization prepares it's balance sheet,it ensures that the depreciation schedule is recorded for all it's assets ensuring that both the cost of the equipment and it's depreciation is documented accordingly. Accumulated depreciation reduces the value of the assets in the balance sheet when added.

8 0
3 years ago
Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares of stock?
Juli2301 [7.4K]
The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.
4 0
3 years ago
Younger Company has outstanding both common stock and nonparticipating, non-cumulative preferred stock. The liquidation value of
Zigmanuir [339]

Answer:

Option B                                                

Explanation:

In simple words, A stock dividend refers to the payout to owners that is rendered not in cash but in securities. Such kind of  dividend payment has the benefit of satisfying stakeholders without decreasing the cash flow for the business. Usually, these dividends are decided to make as fragments paid out per existing securities in hand.

Whenever dividend is paid in stock is paid, the overall asset interest stays the very same on both the viewpoint of the lender and the viewpoint of the business. Both dividend payments therefore include a newspaper submission for the distribution issuing firm.

3 0
3 years ago
Junkyard Arts, Inc., had earnings of $290,400 for the year. The company had 52,000 shares of common stock outstanding during the
Kay [80]

Answer:

The basic EPS for Junkyard Arts, Inc. is $5.2 per share.

Explanation:

The basic earnings per share is the amount of net income that is earned per share of common equity or the amount of net income attributable to each share of common stock. The basic earnings per share (EPS) is calculated using the following formula,

Basic EPS = (Net Income - Preferred stock dividend) / Weighted average number of common shares outstanding

The preferred stock dividend for the period was = 8 * 2500 = 20000

Basic EPS = (290400 - 20000) / 52000

Basic EPS = $5.2

3 0
3 years ago
An increase in government spending by $100 would, if the mpc = 0. 90, result in an increase in real gdp by?
bixtya [17]

The answer is $1000

As Change in real GDP= Change in gov. spending/(1-MPC)

So

100/(1-0.90)=1000

Gross domestic product is the monetary fee of all finished goods and services made inside a country during a selected duration. GDP affords an economic snapshot of a rustic, used to estimate the scale of a financial system and growth charge. GDP can be calculated in 3 methods, the use of fees, production, or earning.

In economics, the marginal propensity to consume (MPC) is defined as the percentage of a mixture enhance in pay that a consumer spends on the consumption of goods and offerings, instead of saving it.

Learn more about Gross domestic product here

brainly.com/question/1383956

#SPJ4

5 0
1 year ago
Other questions:
  • What is the first step in financial planning?
    5·2 answers
  • Grapes are a counted as an intermediate good only if they are used to produce another good such as wine. b. counted as an interm
    15·2 answers
  • On January 1, 2018, Red Inc. issued stock options for 280,000 shares to a division manager. The options have an estimated fair v
    14·1 answer
  • James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership
    6·1 answer
  • The sum of two numbers is 62 and their difference is 16.what is the larger of the two numbers?
    14·1 answer
  • A country's current national savings and investment identity is expressed in algebraic terms as I – S – (T – G) = (M – X). Assum
    10·1 answer
  • José is the manager of Sandy's Candy, a popular confectioner in Illinois. He is in charge of outlining future organizational goa
    9·1 answer
  • The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is
    9·1 answer
  • Crane Company borrowed $1610000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note re
    5·1 answer
  • An economic principle states that the lower the price of a product, the greater the quantity consumers will wish to purchase. Th
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!