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3 years ago

PLEASE HELP ASAP ITS A TEST

Business

2 answers:

skelet666 [1.2K]3 years ago

8 0

Answer:

A is the right answer so right it

Oksana_A [137]3 years ago

3 0

Its C.
The sole trader has to pay all the debts by selling his personal properties if a business fails, as He has unlimited liability. Its a disadvantage.

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Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts.

umka2103 [35]

Answer:

July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.

Dr cash 68,000

Cr common stock 68,000

July 5. Paid monthly rent on medical equipment, $510.

Dr rent expense 510

Cr cash 510

July 9. Paid $16,000 cash to purchase land to be used in operations.

Dr land 16,000

Cr cash 16,000

July 10. Purchased office supplies on account, $1 ,600.

Dr office supplies 1,600

Cr accounts payable 1,600

July 19. Borrowed $26,000 from the bank for business use.

Dr cash 26,000

Cr notes payable 26,000

July 22. Paid $1,100 on account.

Dr accounts payable 1,100

Cr cash 1,100

July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.

Dr advertising expense 250

Cr accounts payable 250

July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.

Dr cash 6,300

Dr accounts receivable 5,300

Cr service revenue 11,600

July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.

Dr wages expense 1,900

Dr rent expense 1,400

Dr utilities expense 600

Cr cash 3,900

July 31. The business received $1 ,340 for medical screening services to be performed next month.

Dr cash 1,340

Cr unearned revenue 1,340

July 31. Paid cash dividends of $6,900.

Dr dividends 6,900

Cr cash 6,900

cash

debit credit

July 1 68,000

July 5 510

July 9 16,000

July 19 26,000

July 22 1,100

July 31 6,300

July 31 3,900

July 31 1,340

July 31 6,900

101,640

accounts receivable

debit credit

July 31 5,300

office supplies

debit credit

July 10 1,600

land

debit credit

July 9 16,000

accounts payable

debit credit

July 10 1,600

July 22 1,100

July 28 250

750

unearned revenue

debit credit

July 31 1,340

notes payable

debit credit

July 19 26,000

common stock

debit credit

July 1 68,000

service revenue

debit credit

July 31 11,600

rent expense

debit credit

July 5 510

July 31 1,400

advertising expense

debit credit

July 28 250

wages expense

debit credit

July 31 1,900

utilities expense

debit credit

July 31 600

dividends

debit credit

July 31 6,900

4 0

3 years ago

Blake Company purchased two identical inventory items. The item purchased first cost $18.00, and the item purchased second cost

murzikaleks [220]

Answer:

c. Ending inventory will be lower if Blake uses weighted average than if FIFO were used

Explanation:

To check which answer is correct, we simply evaluate each option step by step.

Option A

Gross margin is the difference between selling price and cost.

Under FIFO gross margin is $14. (32 -18 =14)

Under LIFO gross margin is $13. (32-19 = 13)

Thus statement is incorrect as gross margin is higher if FIFO is used.

Option B

If FIFO is used, the dollar amount of ending inventory will be $19 as ending inventory will contain product purchased later that is at $19. In contrast, if LIFO is used, the dollar amount of ending inventory will be $18. Thus the statement becomes incorrect that it will be the same.

Option C

The ending inventory under FIFO is $19.

The ending inventory under LIFO is $18

The endng inventory under AVCO or weighted average will be, 18+19 / 2 = 18.5

Thus the statement is correct as the ending inventory under weighted average $18.5 is lower than ending inventory under FIFO $19. So, C is the correct Answer.

3 0

3 years ago

Assume that we are in the MM world. Health and Wealth Company is financed entirely by common stock that is priced to offer a 12

Levart [38]

Answer:

13%

Explanation:

the new cost of equity = old cost of equity + [(debt / equity) x (old cost of equity - cost of debt)]

the new cost of equity = 12%+ [(20 / 80) x (12% - 8%)] = 12% + 1% = 13%

Since we are in the MM world, taxes do not exist, therefore they are not included in the equation.

7 0

3 years ago

An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee c

masya89 [10]

Answer:

Option A is correct.

A decrease in the Equity Investment account

Explanation:

Dividend received amount decreases the investment account. Net income interest in investee account is added to the investment account.

4 0

3 years ago

A supply curve shows quantities supplied at various prices. It also shows the

Annette [7]

Answer: Producer surplus, which is equal to the slope of the supply curve.

Explanation: The producer surplus is represented as the upper portion of the supply curve below the equilibrium price. It is the difference between the amount a producer is willing to sell a given commodity to the actual market price the good was sold at.

The extra benefit which the producer makes as profit when the market price at which the goods was sold at is greater than the amount the producer was willing to sell his goods.

3 0

3 years ago