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Alexxx [7]
3 years ago
10

Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes t

o record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.
Business
1 answer:
hram777 [196]3 years ago
6 0

Answer:

Scarlet Knight Corporation

Posting of transactions:

1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500

Wrong. Correct Posting: Cash 5,500 Common Stock 5,500

2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100

Correct.

3. Purchase office supplies on account, $110. Supplies 110 Cash 110

Wrong. Correct Posting : Supplies 110 Accounts Payable 110

4. Pay $410 for next month's rent. Rent Expense 410 Cash 410

Wrong. Correct Posting: Rent Prepaid 410 Cash 410

5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250

Wrong. Correct Posting: Equipment 1,250 Cash 1,250

Explanation:

1. Owners invest $5,500 in the company and receive common stock.  Cash is increased and Common Stock increased by $5,500.

2. 2. Receive cash of $2,100 for services provided in the current period.

Cash is increased and Service Revenue increased by the same amount.

3. Purchase office supplies on account, $110.

No cash payment is involved with this transaction since it was on account.  The accounts involved and which increased by $110 are Supplies and Accounts Payable.

4. Pay $410 for next month's rent. The amount is for next month.   As such no Rent Expense account is involved.  Instead, the accounts involved are Rent Prepaid and cash.  While Rent Prepaid increases, Cash is reduced.

5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.

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Answer:

10.71%

Explanation:

The computation of the required rate of return on this preferred stock is shown below :

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= Dividend ÷ market value of preferred stock

= 7.50 ÷ $70

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By dividing the dividend from the market value of preferred stock  we can get the  Required return on preferred stock and the same is to be considered

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3 years ago
The additional security option, used for credit card transactions, that keeps track of a customer’s historical shopping patterns
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Answer: the correct answer is d. transaction-risk scoring software.

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3 years ago
A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 andwill remain productive for 4 years.
bezimeni [28]

Answer:

This question is incomplete. However, I found the prompt to be as follows;

"What is the productivity measure of “units of output per dollar of input” averaged over the four-year period? "

Explanation:

To solve this question, find productivity;

Productivity in this case is total hamburgers produced divided by the total labor cost plus total equipment cost.

Productivity = # of hamburgers *52 weeks * 4 years / (total labor cost + equipment cost)

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Explanation:

The following is contextual translation of the <em>English</em> sentences to Spanish sentences:

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Answer:

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Explanation:

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