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nikitadnepr [17]
3 years ago
5

A company purchases supplies on account for $2,200. Indicate the amount of increases and decreases in the accounting equation.

Business
1 answer:
Oliga [24]3 years ago
4 0

Answer:

Assets increase by $2200:  liabilities increase by  $2200

Explanation:

The accounting equation is expressed as below.

Assets = Owners Equity + Liabilities.

Making purchases on account means buying on credit. Purchasing Supplies on credit will increases the debts( liabilities) of the company by $2200.

Supplies will belong to the business; hence assets will increase by $2200

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In what areas is Leslie's underspending<br> hurting her budget?
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Leslie's budget is hurting in the areas of transportation, groceries, phone and dining out.                                                                                                                                                    

<u>Explanation:</u>

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Imagine you inherited $50,000, and you want to invest it to meet two financial goals: (a) to save for your wedding you plan to h
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Answer:

<u>Solution and Explanation:</u>

<u>Evaluation for investment decisions </u>

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General electric bond – 18 months=Bonds are generally Long term or short term depends upon the maturity period for this bond has only 18 months maturity period

Money market shares = This instrument is readily converted into cash at any point in time

Saving account = No obligation of any maturity period saving account is personal account

Short term junk Bonds = Short term junk bonds are for a short period of time

Energy sector mutual fund = This sector mutual fund has long term maturity period and thereafter returns in the long term

Johnson & Johnson stock = It is considered as a dividend growth stock and investor invest for high growth on the market value of the share price

General electric bond – 2.5 years = This instrument has a long term maturity period

Dow ETF ETF is retained for capital gains in the near future period but their gestation period is high

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6 0
3 years ago
On December 16, 2015, B. Darin Company received $5,000 from S. Dee Company for rent of an office owned by B. Darin Company. The
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Explanation:

The journal entry is shown below:

Unearned rent revenue Dr  $1,250

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(Being the unearned rent revenue is recorded)

The computation is shown below:

= Received amount ÷ number of months × given number of months

= $5,000 ÷ 2 months × 0.5 months

= $1,250

So it include a debit to unearned rent revenue for $1,250 and credit the rent revenue for $1,250

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