Answer:
Equipment account increases , and cash decreases with same amount
Explanation:
In the case of acquisition of a new equipment , the equipment account is debited (increase) while the cash account is credit with the same amount of money used for the purchase .
Purchase of an equipment is a balance sheet item , which means it is recorded in the balance sheet and not the income statement as it is not an expense.
The asset register must also be updated with the value of the newly acquired item
Answer:
$72,200
Explanation:
For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:
= Earned amount × given percentage
= $361,000 × 20%
= $72,200
We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement
Answer:
that means the firm is very large
Answer:
a) $ 40,480
b) 17.60%
Explanation:
Working:
a. Increase in sales a 2,30,000
Less:
b=a*5% 11,500
c=a*2% 4,600
- Production ans selling costs
d=a*71% 1,63,300
e=a-b-c-d 50,600
f=e*20%
10,120
Net Income 40,480
b)Return on sales
Net Income/Sales
40480/230000
17.60%
