All categories

2 years ago

The following selected account balances are taken from the records of Cooper Corporation for the past two years.

Business

1 answer:

kumpel [21]2 years ago

3 0

Answer:

Cooper Corporation

1. Cash received from the sale of equipment:

= d. 70

2. Decrease in cash from investing activities:

= b. (522)

3. Increase in cash from financing activities:

= c. 30

Explanation:

a) Data and Calculations:

December 31

2018 2017 Change

Equipment $750 $400 +$350

Accumulated depreciation (160) (225) +65

Land 92 50 +42

Bonds payable 30 50 -20

Common stock 120 100 +20

Additional paid in capital 400 320 +80

Retained earnings 825 675 +150

Net income for the year = $200

Depreciation expense = $70

Less Gain from sale of equipment $5

Equipment

Account Titles Debt Credit

Beginning balance $400

Cash purchase 550

Sale of equipment $200

Ending balance 750

Sale of equipment

Equipment $200

Accumulated depreciation $135

Cash 70

Gain from sale 5

Retained earnings:

Beginning balance $675

Net income 200

Dividends 50

Ending balance 825

Statement of Cash Flows (partial):

Investing activities:

Sale of equipment $70

Purchase of equipment -550

Purchase of land -42

Decrease in cash $522

Financing activities:

Bonds payable -20

Common stock +20

Additional paid in capital +80

Dividends paid -50

Increase in cash $30

You might be interested in

Suppose the economy is initially operating well below capacity. In this case, an expansionary macroeconomic policy will result

Damm [24]

Answer:

The correct answer is option B.

Explanation:

If an economy is working well below capacity this means there is huge amount of unused resources left. Resources or inputs at this point will be available at a relatively lower price. So the firms will be able to expand output at a cheaper rate.

When the demand for inputs increase the input price will not increase much. So, the firms will be able to increase output and the price level will not increase by a great extent.

5 0

2 years ago

Public opinion suggests that overall, americans' commitment to the country and its core institutions is

ivanzaharov [21]

Public opinion suggests that overall, Americans' commitment to the country and its core institutions is strong. Although the United States is composed of 50 states, it remains to be united in its cause. Until now, it is considered to be one of the most powerful countries in the world. This has been the case due to the Americans' strong sense of patriarchy.

3 0

3 years ago

______________________: Bringing goods or services into one country from another.

dem82 [27]

Answer:

importing is the answer.

6 0

3 years ago

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

Katen [24]

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1: Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products Quantity Price

Shoes 40 $60

DVDs 100 $18

Tomatoes 2,000 $1

Ketchup 300 $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

Answer to the First Question

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

Answer to the Second Question:

Nominal GDP represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households) + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

= $6,400

5 0

3 years ago

What distinguishes the money market from the capital market?.

AleksAgata [21]

Answer:

Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have a direct or indirect impact on the capital. Capital markets include the equity market and the debt market.

Explanation:

5 0

2 years ago