Transaction on the accounting equation
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?
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Ajax Corporation borrowed $50,000 from National Bank, giving National a security interest in its factory equipment. The agreement stated that the equipment would be security for this $50,000 loan and any future loans that National made to Ajax.
Nelson Company is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts total $188,000 and budgeted cash disbursements total $187,000. The desired ending cash balance is $40,000. The excess (de
On October 5, Lane Company buys merchandise on account from O'Brien Company. The selling price of the goods is $5,000, and the cost to O'Brien Company is $3,000. On October 8, Lane returns defective goods with a selling price of $700 and a scrap v
Jim and Sally are relatives. Jim loans Sally $12,000 to buy a new car. After Sally has paid back $2,000, Jim decides to forgive the rest of the loan and let Sally enjoy her car. What are the tax consequences to Sally?
Compute the equivalent units of production for materials and conversion costs for the month of September.
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Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1, 2,012. Marco reported net income of $90,700 and declared dividends of $21,800 during 2,012. How much would Ramiro adjust their investment in Marco Company under t
Martin has a home office for his business as an agent for rock-and-roll bands The business shows a loss of $2000 before home office expenses. How should the home office expenses be treated?
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