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2 years ago

Land originally purchased for $28,390 is sold for $74,057 in cash. What is the effect of the sale on the accounting equation

Business

1 answer:

Elodia [21]2 years ago

8 0

There is no effect on the accounting equation.

<h3>What is accounting equation?</h3>

Accounting equation is the one which states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity.

Assets = owner's equity + liability

The above means that land is not depreciated, therefore assets decrease (-land) but also increase (+cash).

The elements of accounting equation are :

Assets
Liabilities
Shareholders' equity.

Learn more about account equation here: brainly.com/question/24401217

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On July 31, the bookkeeping account Supplies Inventory shows a debit balance of $1,000. A physical inventory taken on that date

Tanya [424]

Answer:

$200

Explanation:

When Supplies inventory are purchased, a debit is posted to Supplies inventory and a credit to cash account or accounts payable.

As the inventories are used, debit Supplies expense and credit Supplies inventory account.

Given that $1,000 was the debit in the books and $800 per count, it means the books balance needs to be written down to the physical balance. The difference to be posted

= $1,000 - $800

= $200

This will be done by

Debit Supplies expense $200

Credit Supplies Inventory $200

Being entries to record inventory used in July

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3 years ago

Using the following information, what is the amount of gross profit?

SIZIF [17.4K]

Answer:

Gross profit= $54,700

Explanation:

Giving the following information:

Purchases $37,000

Merchandise inventory, September 1 6,100

Merchandise inventory, September 30 6,800

Sales 91,000

<u>First, we need to calculate the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 6,100 + 37,000 - 6,800

COGS= $36,300

<u>Now, the gross profit:</u>

Gross profit= sales - COGS

Gross profit= 91,000 - 36,300

Gross profit= $54,700

3 0

3 years ago

Everyday fresh is a retail outlet that sells its products at a discounted rate. it expands its product base to a new division th

otez555 [7]

This kind of reasoning is said to be DEDUCTIVE REASONING.
Deductive reasoning is the process of reasoning based on multiple premises that are generally believed to be true. Deductive reasoning usually moves from the general to the specific. For instance, in the question given above, Jason reasoned that if other products are sold at discounted prices, then the items that are newly available will also be sold at discounted prices.

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3 years ago

Read 2 more answers

Carlos bought 20 pounds of vegetables at the farmers market. 60% of the vegetables were organically grown. How many pounds of ve

Margarita [4]

All you have to do is multiply 20 and .40. the answer is 8

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3 years ago

Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be

bekas [8.4K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 12,000,000/320,000= $37.5 per direct labor hour

In April, Sykora incurred actual overhead costs of $1,050,000 and used 30,000 hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 37.5*30,000= $1,125,000

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 1,050,000 - 1,125,000= 75,000 overallocated

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3 years ago