Answer:
The correct option is C.
Cash 48,000
Common stock 48,000
Explanation:
When the owner of a business introduces or invests cash into his own company, it is regarded as a capital or common stock.
The cash invested is therefore recorded in the owner's equity account or as a common stock in order to the stake of the owner in the business. That is, the equity or common stock account show the amount of the assets of the company that are owned by the owner but not by the creditors.
The investment of $48,000 in Martin Consulting, Inc. by Mary Martin, the owner, implies that Martin Consulting, Inc. receives cash from the owner and this will be recorded in the Common Stock of owner.
Therefore, the account the general journal entry to be made in the book of Martin Consulting, Inc. to record this transaction is as follows:
Debit Cash for $48,000
Credit Common stock for $48,000
This will appear as follows:
<u>Particulars Dr ($) Cr ($) </u>
Cash 48,000
Common Stock 48,000
<u><em>(To record cash investment by the owner.) </em></u>
<u><em /></u>
Therefore, the correct option is C.
<span>The terms such as; catastrophic, critical, moderate and negligible is being described in the risk assessment matrix as an adverse event’s effect in regards of level of severity. The level of severity of an adverse event’s effect is important in order to assess the risk that is associated with the particular thing or individual.</span>
Answer:
Credit balance of $12,000
Explanation:
To calculate the balance of the allowance for doubtful accounts we need to multiply the total accounts receivable times the percentage of estimated bad debts:
$160,000 x 7.5% = $12,000
Since allowance for doubtful accounts is a contra asset account, when it increases it should be credited.
Answer:
Conservatism
Explanation:
Conservatism also known as the "doctrine of prudence" is a principle where by the accountant plays safe by anticipating future losses without considering future gains.
