Answer: b) The total amount debited must equal the total amount credited
Explanation:
Journal entries on the debit side must always equal entries on the credit side. This is to fulfil the Accounting requirement of Double Entry where every entry in the books must have an equal and corresponding entry as well.
There can be multiple accounts represented in the journal entry but the amount on the credit side needs to balance with the amount on the debit side.
For example, a good to sold to Hillary by Trump for $30. Trump gives Hillary a discount of 10%. Trump will record that entry as,
DR Cash $27
DR Sales Discount $3
CR Accounts Receivable $30
Notice that the Debit side has 2 accounts but they still add up to the $30 on the Credit side.
Are there any answer choices?
The completion of the Income Statement and Balance Sheet for Future Tech. in the month of March 2021, is as follows:
Future Tech.
<h3>Income Statement</h3>
For the month ended March 31, 2021
Revenue:
Fees Earned $4,500
Expenses:
Advertising $800
Maintenance 790
Internet 600
Telephone 300 $2,490
Net income $2,010
Future Tech.
<h3>Balance Sheet</h3>
As of March 31, 2021
<u>Assets</u>
Cash $600
Accounts Receivable 1,200
Supplies 350
Office Equipment 3,400
Total assets $5,550
<u>Liabilities and Equity</u>
Liabilities:
Accounts Payable $250
Bank Loan 1,800
Total liabilities $2,050
Owner's equity $3,500
Liabilities + Equity $5,550
<h3>What is a balance sheet?</h3>
A balance sheet is a financial statement that shows the assets (what the entity owns) and the liabilities (what the entity owes outsiders) plus the equity (what the entity owes to the owner).
Thus, the capital amount for owner R. Lee is calculated to be <u>$3,500</u> ($5,550 - $2,050).
Learn more about preparing a balance sheet at brainly.com/question/1113933
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Answer:
the annual depreciation rate is 25%
Explanation:
The computation of the depreciation rate is shown below:
= Yearly depreciation ÷ (Purchased cost - salvage value)
= ($3,000 × 12 months) ÷ ($180,000 - $36,000)
= $36,000 ÷ $144,000
= 25%
Hence, the annual depreciation rate is 25%
we simply applied the above formula
Answer:
D, doing all of the above
Explanation:
Deposit outflow is a situation in which deposits are lost as a result of continous withdrawals by depositors.
In other for banks to protect themselves from this sort of situation, the bank can choose to do all of the options in the questions which includes callin-in loans, holding excess reserves and/or selling securities. This helps the bank to maintain account balances amongst other things.
To reduce or eradicate deposit outflow is the reason for deposit insurance. Deposit Insurance corporations or companies helps banks to reduce their deficits or losses when they are at the point of not being able to pay deposits when due.
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