All categories

3 years ago

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

You might be interested in

Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following informa

horsena [70]

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

5 0

2 years ago

The accounting records of Tuel Electronics show the following data.Beginning inventory 3,880 units at $8Purchases 8,660 units at

Scrat [10]

Answer:

FIFO

FIFO means First in First Out. This method values cost of sales at the earliest prices

Cost of Goods Sold = (3,880 units × $8) + (5,430 units × $10)

= $85,340

LIFO

LIFO means Last in Fist Out. This method values cost of sales at the latest prices.

Cost of Goods Sold = (8,660 units × $10) + (650 units × $8)

= $91,800

Weighted Average Cost

The unit cost is re-calculated with every new purchase of units made. The cost of sale will be valued on the newly calculated average unit cost.

Unit Cost = Total Cost ÷ Total Units

= (3,880 units × $8) + (8,660 units × $10) / 12,540 units

= $9.381

Cost of Goods Sold = Units Sold × Unit Cost

= 9,310 units × $9.381

= $ 87,337.11

7 0

2 years ago

If a company wants to be innovative which strategy are they most likely to use mkt 100

Licemer1 [7]

they are going to use the most mordern way they can deal with and thats with promos and ork mostly on website in our days

4 0

2 years ago

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

docker41 [41]

Answer:

Total disbursement 892,000

Explanation:

Nomvember cash disbursement for raw materials

Nomvember purchase 860,000 x 60% = 516,000

ocober purchase 940,000 x 40% = 376,000

Total disbursement 892,000

6 0

2 years ago

Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system a

atroni [7]

Answer: Check attachment

Explanation:

Apr. 17:

Account payable:

= $6500 - $900

= $5600

Merchandise Inventory

= $5600 × 2%

= $5600 × 0.02

= $112

Cash = $5600 - $112

= $5488

Apr. 28:

Account payable:

= $12300 - $500

= $11800

Merchandise inventory

= $11800 × 1%

= $11800 × 0.01

= $118

Cash = $11682

Check attachment

8 0

3 years ago