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Phoenix [80]
2 years ago
13

The following transactions occurred during April 2021 at the Kanthere, a retailer selling headphones. For the selected transacti

ons below, show the amount and impact (increase or decrease) on the accounting equation below. If a transaction impacts the income statement, indicate in the description column the specific income statement line item.
Transaction
1 Purchased a delivery truck for $90,000 that will be used for 4 years. The truck doesn’t have a salvage value.
2 Sold a $100 gift card to a customer for cash.
3 Paid rent for the month of $10,000.
4 Purchased 20 headphones at $30 each on account. Payment is due in 45 days.
5 Sold 4 headphones for $70 each on account.
Business
1 answer:
Dmitry_Shevchenko [17]2 years ago
5 0

Answer:

Assets = Liabilities + Stockholders’ Equity = -$6,500

Explanation:

Note: See the attached excel file for recording of the impact (increase or decrease) of April 2021 transactions on the accounting equation.

From the attached excel file, we can obtain the following:

Assets = Total assets = -$99,900 + $90,000 + $600 + $2,800 = -$6,500

Liabilities = Total liabilities = $600

Stockholders’ Equity = Total Stockholders’ Equity = -$7,100

Liabilities + Stockholders’ Equity = $600 - $7,100 = -$6,500

Therefore, the accounting equation holds as follows:

Assets = Liabilities + Stockholders’ Equity = -$6,500

Download xlsx
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John is an entrepreneur who plans to enter a franchise contract with a hotel business. which of these is an advantage that John
umka2103 [35]

Answer:

The correct answer would be option C, He will be able to gain knowledge and support from the hotel business to run the franchise.

Explanation:

Franchise is basically a contract between two parties in which one of the party who is owning the business is ready to sell his business rights to use its name and products to the other party. The other party can open the same business with the same name and products or services and run that business. In this type of contract, a continuous help and support is given to the franchisee to run the business. So if John being an entrepreneur wants to enter into the franchise contract, then he will surly be able to gain knowledge and support from the hotel business to run the franchise.

3 0
3 years ago
Read 2 more answers
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
3 years ago
At the beginning of 2017, Aristotle Company acquired a mine for $970,000. Of this amount, $100,000 was ascribed to the land valu
viktelen [127]

Answer: $225,000

Explanation:

Given that,

Company acquired a mine = $970,000 of this amount,

Land value = $100,000 and remaining  portion to the minerals in the mine

Ore appear to be in the mine = 12,000,000 units

Aristotle incurred development costs = $170,000

fair value of its obligation = $40,000

ore were extracted = 2,500,000 units

Units sold = 2,100,000

Depletion\ per\ unit = \frac{Mine\ acquiring\ cost + Development\ cost + Fair\ value\ of\ land - land\ value}{Ore\ appear\ to\ be\ in\ the\ mine}

                                       =\frac{970,000 + 170,000 + 40,000 - 100,000}{12,000,000}

                                       = $0.09 depletion per unit

The total amount of depletion for 2017 =  depletion per unit × ore were extracted

                                                                 = $0.09 × 2,500,000

                                                                 = $225,000

7 0
3 years ago
Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies, has production facilit
Anettt [7]

Answer: MULTINATIONAL

Explanation: MULTINATIONAL ENTERPRISE is any Enterprise that has its presence and does business in two or more countries. The presence can be in the form of Production facilities, Marketing facilities,joint ventures or even Franchise etc

Companies like Green Cleaners Inc., a U.S. company which has expanded to Spain and Poland are multinationals. Multinational organizations or enterprises have huge capital base through which they are able to acquire properties abroad.

3 0
3 years ago
Wilco LLC uses the weighted average method to determine equivalent units of production. Wilco LLC reported that in last quarter
Anika [276]

Answer:

the number of equivalent units for the production is 13,500 units

Explanation:

The computation of the number of equivalent units for the production is shown below:

Units completed and transferred  is  10,000 units

Add Ending work in the process [7,000 × 0.50] 3,500 units

Total equivalent units 13,500 units

Hence, the number of equivalent units for the production is 13,500 units

The same is relevant

4 0
2 years ago
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