Answer:
ASSETS = LIABILITIES + EQUITY
a 97,000 = + 97,000
b (2,100) = + (2,100)
c 10,000 = 10,000 +
d 1,600 = + 1,600
e 9,000 = + 9,000
f - = +
g (3,000) = + (3,000)
h = +
i (10,000) = (10,000) +
<u>j (1,100) = + (1,100)</u>
TOTAL $101,400 = - + 101,400
Explanation:
Accounting equation is the foundation of dual entry bookkeepping system. It is also known as the balance sheet equation that shows the relationship between ASSSET, LIABILITIES AND EQUITY. Total assets must be equal to total liabilities + Equity due to the dual entry system otherwise, it is an indication of discrepancy in during the recording.
D. See if "How do I add a column" is a frequently asked question
Checking the FAQ is always the first step before contacting support or taking a tutorial.
Answer:
the Fed lowers interest rates during recessions and raises them during economic booms
Explanation:
Countercyclical monetary policy is a monetary policy used to work against any cyclical tendencies in order to slow down the economy when it is booming, and to stimulate economic activity then there is a recession.
Example of such policy is therefore a reduction of interest by the Fed during recessions and an increase of interest rate when there are economic booms.
Answer:
This question is incomplete, here's the complete question:
Irene Watts and John Lyon are forming a partnership to which Watts will devote one half time and Lyon will devote full time. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments, which they have agreed will be $42,000 for Watts and $63000 for Lyon; (b) in proportion to the time they devote to the business; (c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investment; or (d) a salary allowance of $6000 per month to Lyon, 10% interest on their capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1, $36,000 net loss; year 2, $90,000 net income; and year 3, $150000 net income.
Required
Prepare three tables with the following column headings.
Year______
Income (Loss)----------------------------------------------------------------------------------------------
Sharing Plan Calculations Watts Lyon
Explanation:
in order to present a detail answer in a step by step explanatory answer for the three year, there's a need to build a diagram which will be used to render our explanation in a clear and precise manner.
kindly check the attached image below to see the full answer rendered in a detailed diagram for the three years.
Answer:
The journal entry as at the end of the year will be
End of year Debit Cost of Goods Sold $110,000
Credit LIFO Reserve account $110,000
Explanation:
A FIFO method of inventory maintenance is when the first in first out(FIFO) method for inventory utilizations is followed. Here, the oldest inventory is used first followed by the next oldest inventory. Suppose I have in stock inventory purchased in March and May, when the demand for use of inventory arises, the March inventory purchased will be utilized first.
LIFO method works the opposite way. In the above case, when the demand for use of inventory arises, the May inventory purchased will be utilized first.
In this case, FIFO is changed to LIFO method which gives rise to and LIFO reserve account of $50,000/- at the beginning of the year. Through the year, the difference in inventory maintenance method, further increases the LIFO reserve by $60,000/-. Hence the total reserve created due to inventory method change is $50,000+$60,000 = $110,000/-. The change in inventory maintenance will have a direct impact on cost of goods sold(COGS). Hence COGS is debited.
