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Step2247 [10]
3 years ago
14

The following transactions were completed by the company.

Business
1 answer:
dybincka [34]3 years ago
7 0

Answer:

The impact of each transaction on individual items of the accounting equation:

A. The company completed consulting work for a client and immediately collected $6,200 cash earned.

Assets (Cash + $6,200) = Liabilities + Equity (Retained Earnings + $6,200)

B. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.

Assets (Accounts Receivable + $4,700) = Liabilities + Equity (Retained Earnings + $4,700)

C. The company paid an assistant $1,750 cash as wages for the period.

Assets (Cash -$1,750) = Liabilities + Equity (Retained Earnings -$1,750)

D. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.

Assets (Cash +$2,350 and Accounts Receivable -$2,350) = Liabilities + Equity

E. The company paid $840 cash for this period's cleaning services.

Assets (Cash -$840) = Liabilities + Equity (Retained Earnings -$840)

Explanation:

The accounting equation is that assets are always equal to liabilities and equity before and after every business transaction.  It is an important principle of accounting and the fulcrum of the double-entry system of accounting.  It establishes the two sides to every transaction.  It can be used to show the impact of daily business transactions on the assets, liabilities, and stockholders' equity.

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Borrowed money obtained through loans of various types is called debt capital. capital is a loan made to a company that is normally repaid at some future date. Debt capital is the loan that a business raises by taking out a loan. 

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3 years ago
Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its
ololo11 [35]

Answer:

Allocated MOH= $165,240

Explanation:

Giving the following information:

Estimated manufacturing overhead $157,750

Estimated machine-hours 4,640

Actual manufacturing overhead $157,400

Actual machine-hours 4,860

First, we need to calculate the predetermined manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 157,750/4,640= $34 per machine hour

Now, we can calculate the allocated overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 34*4,860= $165,240

5 0
2 years ago
Read 2 more answers
During the past month, Jennifer Johnson had income of $3,500. During the month, her net worth declined by $300. If no other fina
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I think Jennifer’s payment for the month is 3,800
7 0
2 years ago
For an individual who is participating in a 45-minute walk, how essential is this beverage?
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In any kind of exercises, may it be a 45-minute walk or running or swimming, beverages such as water is essential. A person must drink water before, during, and after exercises. This is because a person needs to maintain his hydration while exercising for it regulates body temperature and helps lubricate the joints. Also, it contains nutrients which keep you healthy.
6 0
3 years ago
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An investor owns 5,000 shares of IBM stock, $105 per share. He thinks that there is no large rise and possible drop in price. Th
lutik1710 [3]

Answer:

If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000 .

Explanation:

Shares = 5000

Price of shares = $105

Sell Price = $112

The profit associated with the passive strategy  = $(112 - 105) × 5000

= $ 35,000

Now with covered call also included in the strategy the profit/loss from covered call can be calculated as

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Spot Price = $112

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(Spot Price - Strike Price ) × Total Shares

= $(112 - 110) × 5000

= $10,000

Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000

= $ 10000

Hence the profit associated with the covered call writing strategy

= $35,000 + $10,000

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