Assuming the entity invested 500,000 to the business the effect of this transaction would have an increase in asset by debiting Cash worth 500,000 and crediting what account? a. Owner’s Drawing b. Owner’s Equity c. Owner’s Additional Investment d. Accounts Payable
Q: Kends, Inc., is newly established corporation engage in a buying and selling of the cars. Its total…
A: Total liabilities = 25,000,000 Equity = Total liabilities/2 = 25,000,000/2 =…
Q: For each of the items, indicate the type of business activity–operating, investing, or financing.…
A: The cash flow statement is prepared to record the cash flow from various activities into the…
Q: The cash flow statement is closely related to the balance sheet. From the following transactions,…
A: The balance sheet shows the financial position of the company that involves the assets, liabilities,…
Q: Land originally purchased for $26,392 is sold for $76,038 in cash. What is the effect of the sale on…
A: Given: Land cost = $26,392 Sale value = $76,038
Q: Land, originally purchased for $28,103, is sold for $74,706 in cash. What is the effect of the sale…
A: concept accounting equation is given as asset = liabilities + equity given Original cost of…
Q: - How do businesses follow their profits arising from the sale of tangible fixed assets in which…
A: The correct option is A) Other Income To Be Accounted
Q: Entity A started operations during the period. The following were the transactions: a. Mr A, the…
A: Unadjusted trial balance is summary of all general ledger account balances of the business.
Q: In which section of the statement of cash flows would each of the following transactions be…
A: 1.Operating activities include all the operating transactions such as payment for supplies, payment…
Q: Which of the following statements regarding the income statement are true? Group of answer choices…
A: Option A is Wrong: Reason: Net income shall not be included on the asset section of balance…
Q: Which one of the following increases the current liabilities of a business entity? Select one: a.…
A: Liabilities are know as the financial obligation or financial debt which has to payable by the…
Q: Fill in the blanks using the Accounting Equation: Assets-Liabilities+Owner'sEquity. Case A B C Case…
A: As per accounting equation of the business, total assets of the business must be equal to total…
Q: Q. Suppose two companies acquire a machinery for use in operations. Company A expenses the…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Examine the listed business activities and decide if each is to be classified as a
A:
Q: What kind of assets are cash and other assets that are expected to be converted to cash or sold or…
A: The financial statement consists of mainly three statements Income statement Balance sheet Cash…
Q: Suppose your company sells services of $260 in exchange for $175 cash and $85 on account.…
A: 1.Cash flow from operating activities means the net cash inflow or outflow generated through day to…
Q: The following information is from a new business. Assets - Liabilities = Owner’s Equity End of…
A: As per the accounting equation, assets are always equal to the sum of liabilities and owner's…
Q: Fill in the blank with these terms : long term, expense, balance sheet, Stockholder's equity,…
A: Solution: 1. Revenues are monies an organization received in exchange for goods and Service it…
Q: Land originally purchased for $28,635 is sold for $78,775 in cash. What is the effect of the sale on…
A: Accounting Transaction: An economic event, which causes impact (increases or decreases the value…
Q: Which of the following is a group of accounts that shows the rights of the owner or partners of the…
A: In order to fulfill the financial requirements, the business entity issue the equity shares. The…
Q: Classify the following items as (1) operating, (2) investing,(3) financing, or (4) significant…
A: Statement of cash flows: The statement of cash flows is a statement which includes all transactions…
Q: The following statement suits best the definition of ASSETS: O a. The assets are expenses incurred…
A: Assets are considered as the resources of the business used to run the daily activity of the…
Q: Which financial statement reports the changes in owner's equity (legal ownership of the company) for…
A: Solution: There are various financial statements which reports the results of the transactuions of a…
Q: A company purchased a parcel of land using a long- term note payable. Using the direct method, where…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…
Q: Owner's equity can be increased through a. withdrawals by the owner O b. investments by the owner O…
A: The question is based on the concept of Accounting Theory.
Q: Chuzzle Company used the direct method to prepare the statement of cash flows. The entity had the…
A: Net cash provided by investing activities will include Cash receipts from dividends on long-term…
Q: Match the activity on the left with the appropriate cash flow category on the right. v Sale of used…
A: Cash flow statement is one of the financial statement of a corporation. It is prepared at the end of…
Q: When should liabilities for each of the following items be recorded in the accounts of the business…
A: Account payables means the amount owed by business to outsider for the goods received and services…
Q: Complete the following into meaningful transactions . Solve them in basic accounting equation.…
A: The accounting equation is a key part of the balance sheet and a basic concept of accounting. The…
Q: Identify the letter for the principle or assumption from A through F in the blank space next to each…
A: Definition: Accounting concepts and principles: Financial statements are prepared in accordance with…
Q: For each transaction, indicate whether each account would be classified in the balance sheet as (a)…
A:
Q: A building with a book value of $41,219 is sold for $57,394 cash. Using the indirect method, choose…
A: Cash flow statement: Cash flow statement is a main part of financial statement. It is prepared to…
Q: For each transaction, indicate whether each account would be classified in the balance sheet as (a)…
A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…
Q: Which accounting method will result in financial statements that report a more complete picture of a…
A: Financial statements of an entity are the reports prepared for the purpose of analyzing the…
Q: The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and…
A: The given table is in the form of accounting equation, - means decrease in the account and + means…
Q: Which of the following is related with both cash flow statement and statement of financial position?…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Show the relevant equity components at the end of year 1 and 2.
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: Choose an answer by this following choices: A. Cash provided/used by operating activities. B. Cash…
A: The cash flow statement activities are classified as operating, investing and financing activities.…
Q: IDENTIFICATION OF OPERATING, INVESTING, AND FINANCING ACTIVI- TIES The following activities took…
A: Statement of cash flows is a statement which shows all cash inflows and cash outflows of the…
Q: What business record shows the results of the proprietorship’s borrowing assets from the business,…
A: Proprietor’s Withdrawals: An owner's withdrawal, also known as a distribution, is a transfer of cash…
Q: A building with a book value of $36,213 is sold for $60,055 cash. Using the indirect method, this…
A: Gain on sale of Building = Sales value - Book value Gain on sale of Building = $60,055 - $36,213…
Q: A building with a book value of $38,179 is sold for $57,462 cash. Using the indirect method, this…
A: Gain (loss) on sale of building = sales value - book value = $57,462 -$38,179 = $19,283
Q: For each of the items, indicate the type of business activity–operating, investing, or financing.…
A: Cash flow statement forms part of financial statement of an entity. It was used to find the cash…
Q: which is the effect of the following transaction on the basic accounting equation? Bought equitment…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…
Q: a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate…
A: Assets: Assets are those items that provide value for money and future economic benefit for an…
Assuming the entity invested 500,000 to the business the effect of this transaction would have an increase in asset by debiting Cash worth 500,000 and crediting what account?
a. Owner’s Drawing
b. Owner’s Equity
c. Owner’s Additional Investment
d. Accounts Payable
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which one of the following item will be debited in profit and loss appropriation account? a. Interest on drawings b. Interest on deposits c. Bonus to partners d. Interest on loan *fast********What business record shows the results of the proprietorship’s borrowing assets from the business, usually anticipation of profits? A. Proprietor’s Withdrawals B. Proprietor’s Investment C. Proprietor’s Capital D. Proprietor’s AssetsAll of the following increase owner’s equity except for which one?A. gainsB. investments by ownersC. revenuesD. acquisitions of assets by incurring liabilities
- In which account, how do businesses keep track of their profits arising from the sale of tangible assets?A) Other Income To Be AccountedB) Debited to Ordinary Income and ProfitsC) Other Discounts will be credited to your accountD) Prior Period Income and Profits Will Be AccountedE) Other Extraordinary Income and Profits Will Be AccountedWhich of the following shows how paying cash to purchase suppites will affect a company's financial statements? Multiple Choice Assets Assets Balance Sheet Llab, + NA Assets Balance Sheet Liab. + Equity NA Balance Sheet Assets - Llab -10 NA Equity NA Balance Sheet Llab. NA Equity NA Equity Rev NA Rev. NA Rev NA Rev. NA Income Statement Exp NA Net Inc. NA Income Statement - Exp. Net Inc. Income Statement Exp NA -Net Inc. NA Income Statement Exp NA Net Inc. NA Statement of Cash Flows - OA Statement of Cash Flows NA Statement of Cash Flows NA Statement of Cash FlowsAll of the following increase owners equity except for which one? A. gains B. investments by owners C. revenues D. acquisitions of assets by incurring liabilities
- Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assetsIf a company reports a gain/(loss) from the sale of assets, as part of the net income on the income statement, and the net book value of those assets on the date of the sale is known, can the amount of the cash proceeds from the sale be determined? If so, how?Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
- In early January 2023, Flounder Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $361,000. Flounder was now able to exercise considerable influence in decisions made by Washi's management. Washi's statement of financial position reported the following information at the date of acquisition: Assets not subject to being amortized Assets subject to depreciation (10 years average life remaining) Liabilities Additional information: 1. 2. 3. 4. (a) $180,000 546,000 101,000 Both the carrying amount and fair value are the same for non-depreciable assets and for liabilities. The fair value of the assets subject to depreciation is $660,000. The company depreciates its capital assets on a straight-line basis. Washi reported net income of $143,000 and declared and paid dividends of $99,000 in 2023. Prepare the journal entry to record Flounder's investment in Washi. Assume that any unexplained payment is goodwill. (Credit account titles are…For each of the following cate ories, state con:Cisely a transaction that will have the required ef. fect on the elements of the acc ounting iquation.' EXERCISE 2.7 Effects of Business Transactions a. Increase an asset and inerease a liability. b. Decrease an asset and decrease a liabilitv. c. Increase one asset and decrease another asset. d. Increase an asset and increase owner's eyuit e. Increase one asset, decrease another asset, and increase a liability. LO 3Match each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…
