Question

In: Accounting

1.ABC company purchase $500 of inventory with cash. how does the equaiton change? 2. Abc company...

1.ABC company purchase $500 of inventory with cash. how does the equaiton change?

2. Abc company purchase $500 of supplies on credit? how does the equation change?

3. you invest $50,000 cash into ABC company. how does the equation change?

Solutions

Expert Solution

S.no. Accounting Equation
Assets = Liabilities + Stockholders' Equity
Cash + Inventory + Supplies = Accounts Payable + Common Stock
+ + = +
1               (500) +                 500.00 +                       -   =                             -   +                               -  
2 + +                   500 =                          500 +
3           50,000 + + = +                      50,000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

QUESTION FOUR (25 Marks) 1) How does a company generate Cash? 2) How does a company...
QUESTION FOUR 1) How does a company generate Cash? 2) How does a company use Cash? 3) To what extent do accounting numbers reflect economic reality 4) How do you incorporate in your financial analysis many ‘assets’ not reported in the financial statements that generate more income in the future ( capacity of assets in place to generate future income, role of better management/executives, loyal customers etc) 5) Are positive accounting earnings a sign of superior performance (can support increase...
A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in...
A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800. Compute the following ratios: Current ratio DSO TIE profit margin Total asset turnover
1. How are purchase returns and purchase discounts recorded by a company using the periodic inventory...
1. How are purchase returns and purchase discounts recorded by a company using the periodic inventory system? a. as a reduction to the sales b. in contra-accounts to the purchases account c. as operating expenses d. as miscellaneous expenses 2. Information for Year 2 and Year 1 is presented below for Fireworks City, which uses the straight-line depreciation method. Year 2 Year 1 Property, plant, and equipment $250,000 $190,000 Accumulated depreciation 100,000 85,000 Depreciation expense 62,500 47,500 Net sales 1,000,000...
In a perpetual inventory system, the purchase of inventory is debited to: 1. Inventory 2. Cost...
In a perpetual inventory system, the purchase of inventory is debited to: 1. Inventory 2. Cost of Goods Sold 3. Accounts Payable 4. Purchases
Why does the money multiplier change if people hold cash? How does it change? If people...
Why does the money multiplier change if people hold cash? How does it change? If people start holding more cash now than they did in the past, is monetary policy more effective or less effective? Draw a graph to show this effect.
1- perpetual inventory system continually updates inventory records True Fales? 2- A company can change from...
1- perpetual inventory system continually updates inventory records True Fales? 2- A company can change from lifo to fifo without notifying the internal revenue service False True?
1. What does cash include and why should it be controlled? 2. In the COMPANY Cash...
1. What does cash include and why should it be controlled? 2. In the COMPANY Cash account give examples of INCREASES. 3. In the COMPANY Cash account give examples of DECREASES 4. Give examples of bank issued CREDIT Memos. 5. Give examples of bank issued DEBIT Memos. 6. Why is a bank CREDIT memo a Debit to the COMPANY Cash account? 7. Why is a bank DEBIT memo a Credit to the COMPANY Cash account? 8. You start the Bank...
The following information is available for Harold Company: Beginning inventory                500 units at $5 First purchase         &n
The following information is available for Harold Company: Beginning inventory                500 units at $5 First purchase                         900 units at $6 Second purchase                    600 units at $7 Assume that Harold uses a periodic inventory system and that there are 750 units left at the end of the month. Instructions Compute the cost of goods sold under the LIFO FIFO Average Cost Enter calculation and answer below.
The following information is available for Harold Company: Beginning inventory                500 units at $5 First purchase         &n
The following information is available for Harold Company: Beginning inventory                500 units at $5 First purchase                         900 units at $6 Second purchase                    600 units at $7 Assume that Harold uses a periodic inventory system and that there are 750 units left at the end of the month. Instructions Compute the cost of goods sold under the LIFO FIFO Average Cost Enter calculation and answer below.
1)If you double the charge, how does the energy change in a capacitor? 2)How do you...
1)If you double the charge, how does the energy change in a capacitor? 2)How do you calculate the equivalent capacitance of capacitors when they are in series and in parallel? 3)What is a dielectric and dielectric breakdown? 4)What’s leakage current? 5)Define dielectric constant and permittivity.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT