Following is selected information from Company trial balance. Cash $ 51,300 Land 132,000 Patents 13,400 Accounts...

Following is selected information from Company trial balance.

Cash	$ 51,300
Land	132,000
Patents	13,400
Accounts receivable, net	28,000
Equipment	55,000
-Accum. Dep.	22,500
Accounts payable	23,100
Sales tax payable	8,400
Deferred sales	3,800
Sales	312,000
Sales discounts	4,800

How much are Current Liabilities?

What effect does the payment of dividends have on the accounting equation?

Automobile dealerships most likely use which inventory costing method?

Multiple Choice

Weighted-average.
Specific identification.
Actual cost.
Matching unit.

Expert Solution


	Current Liabilities		Accounts Payable + Sales Tax Payable + Deferred Sales
	Current Liabilities		23100+8400+3800
	Current Liabilities		35,300

	What effect does the payment of dividends have on the accounting equation?

	When dividend is paid, retained earnings is reduced by the amount of dividend and
	cash account is reduced by dividend amount. So shareholders' equity and current assets
	both are reduced on dividend payment.



	Automobile dealerships most likely use which inventory costing method?

	Specific identification
	It is the best inventory method for automobile dealerships as inventory items are big items such as
	Car.
	In this case specific identification cost is the best method to use

ekkarill92 answered 2 years ago

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