Answer:
Asset accounts. A debit increases the balance and a credit decreases the balance. Liability accounts. A debit decreases the balance and a credit increases the balance.
Explanation:
One number that represents a group of numbers is called a/an
Answer:
Average.
Explanation:
One number that represents a group of numbers is called an average. The most commonly used average in the real world for the calculation of different parameters such as gross pay, average pay, price, quantity etc, is the simple average.
In order to calculate an average, the total number of items are added together and then divided by the number of items.
For example, find the average of the salaries of five (5) employees who earn $10, $5, $50, $20 and $15 respectively.
Given, number of employees = 5
Total sum of money earned = 10+5+50+20+15 = 100
Average = Total sum of money/number of employees
Substituting the values, we have;
Average = 100/5
Average = 20.
Hence, the average pay of the five (5) employees is $20. This $20 represents a group of salaries earned by the five employees.
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.54 percent, a par value of $1,000 per bond, matures in 4 years, has a total face value of $3.8 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.10 percent, a par value of $2,000 per bond, matures in 23 years, has a total face value of $8.1 million, and is quoted at 95 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 39 percent. What is the firm's weighted average aftertax cost of debt
Answer:
3.20%
Explanation:
The firm's weighted average aftertax cost of debt can be determined by first of all determining the before-tax cost of each debt.
Using a financial calculator, the before-tax costs of debt are ascertained as follows:
Bond 1:
N=8(number of semiannual coupons in 4 years)
PMT=17.70 (semiannual coupon=face value*coupon rate/2=$1,000*3.54%/2=$17.70)
PV=-1030(current price=$1000*103%=$1030)
FV=1000(the face value is $1000)
CPT
I/Y=1.37%(the semannual yield, annual yield=1.37%*2=2.74%)
after-tax cost of first debt=2.74%*(1-39%)=1.67%
Bond 2:
N=46(number of semiannual coupons in 23 years)
PMT=30.50 (semiannual coupon=face value*coupon rate/2=$1,000*6.10%/2=$30.50)
PV=-950(current price=$1000*95%=$950)
FV=1000(the face value is $1000)
CPT
I/Y=3.26%%(the semannual yield, annual yield=3.26%%*2=6.52%)
after-tax cost of second debt=6.52%*(1-39%)=3.98%
market value of first debt=$3.8 million*103%=$3,914,000
market value of second debt=$8.1 million*95%=$7,695,000
total market value of debts=$3,914,000+$7,695,000=$11,609,000
firm's weighted average aftertax cost of debt=(1.67%*$3,914,000/$11,609,000)+(3.98%*$7,695,000/$11,609,000)
firm's weighted average aftertax cost of debt=3.20%
This communication channel is typically used to provide an audience with information about a product or service, usually for informational or persuasive purposes. It is a one-way communication in a visual medium.
Answer:
Online advertisement
Explanation:
In the ever-increasing technological world, online advertising is an extremely elaborate solution for the sale of any item or service or for the information about that item or service.
The use of online advertisements is usually an elaborate way of providing detailed information about goods and services in which information about goods and services is provided to individuals viewing through movable images, communication in the online advertising technological world.
This is a large medium of information as well as it is also a proper means of giving unilateral information.
PLEASEE! unit test in progress!!
A tax accounting software company is trying to help potential customers understand how other tax firms are already using certain platforms to complete their work. What type of primary research might they use to BEST tell that story?
a. Websites about tax firms’ busy season
b. Account textbooks
c.an interview with a single client
d. 10 case studies of existing clients
Answer:
It is D
Explanation:
.
What is an example of SECONDARY market research
Answer:
News articles and Reports
Explanation:
its how they draw their data
Answer: Market research that's already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.
Explanation: Secondary research uses outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, and so on. It's usually published in pamphlets, newsletters, trade publications, magazines, and newspapers. Secondary sources include the following: public and commercial sources
Cynthia has been asked by her superior to calculate the total shareholder’s equity. Which balance will she add to the opening equity to find the closing balance of the shareholder’s equity?
A.
retained earnings
B.
salaries payable
C.
supplies
D.
inventory
E.
cash at bank
Answer:
A. retained earnings
Explanation:
Retained earnings are part of a company's profits that have not been distributed to shareholders as dividends. It means that retained earnings belong to shareholders only that they have not been shared with them. Businesses use retained earnings to further investments into the business.
Retained earnings are added to the opening balance of equity to determine the balance of shareholders' equity. They are added because they belong to shareholders.
If dell, which currently does not offer an e-reader, decided to enter the market with one, this e-reader would be classified as.
If dell, new category entry currently does not offer an e-reader, decided to enter the market with one, this e-reader would be classified as.
How does an eReader operate and what is it?
The way that e-readers typically work is by reading a file and displaying the content as "e-ink" on the display. On the touch screen, each page is displayed as a separate page. A new page can be accessed by sliding the screen left or right or by pressing a button on the device.What makes us utilize eReaders?
E-readers typically weigh less and are more portable than tablets, making them more comfortable to carry and more portable. They also make reading in bright sunshine more comfortable than on a backlit tablet because of their nonglare screens. E-readers are perfect for using by the beach or a pool.Learn more about E-readers
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PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE
Ivywood Country Club recently hired Spencer to find additional resources, make major decisions involving membership, and develop ideas for new swag to be sold in the pro shop. What unique skill did the club MOST likely need when they hired Spencer?
capital capacity
labor talent
entrepreneurial ability
Answer:
entrepreneurial ability
Explanation:
Entrepreneurial ability is the capacity to understand every aspect of a business. It entails combining a range of technical, management, and personal skills. Entrepreneurial ability incorporates creativity, ambition, determination, teamwork, risk management, and a sense of responsibility.
Spencer must have Entrepreneurial abilities; that's why the club hired him. The club believes that his creativity and determination will be useful in finding additional resources. Spencer can recognize, attract, and retain talent. Entrepreneurial abilities involve taking over a business that already exists and making it better.
Elysha has a monthly gross income of $3,000 and a monthly debt load of $500. How can her debt-to-income ratio be classified?
Answer:
Her debt to income ratio is classified as favorable
Explanation:
The given information are;
Elysha's gross monthly income = $3,000
The amount she pays as debt each month = $500
Therefore, her debt to in to income ratio, DTI, is given as follows;
DTI = (Amount payed as debt)/(Gross income) = $500/$3,000 ≈ 0.167
We multiply by 100 to express the result as a percentage, to get;
0.167 × 100 = 16.7%
Given that her debt to income ration is less than 35%, her debt to income ratio is classified as favorable and she has a manageable debt.
Answer: Good—between 15 and 20 percent
Explanation: All you have to do is find what the different percents of 3,000 are and see which one is the closest.
Multiple Choice Question The changes in the non-cash balance sheet accounts explain the differences between the ______. Multiple choice question. net income and total stockholders' equity income statement and the statement of cash flows net income and total assets income statement and the statement of retained earnings
Answer: income statement and the statement of cash flows
Explanation:
Toni Nicolet's
checking account balance on Monday, April 13, is $540; her savings balance is $980. On
Tuesday, April 14, she made an ATM withdrawal from checking of $86. On April 15, Toni plans to make
these online payments: income tax bill, $823, utility bill, $98, and charge account bill, $127. How much
money, if any, will Toni have to transfer into her checking account from savings to cover the online
payments and leave a balance of $50 in the checking account?
Answer:
$644
Explanation:
Toni has a balance of $540 on her checking account
She made an ATM withdrawal of $86
The balance on her checking account after withdrawal is
= $540 - $86
=$454
Toni intended to pay online payments on Arpril 15. The total of the payments
=$823 + $98 + $127
=$1048
It means Toni has a deficit of
=$454- $1048
=($594)
If Toni desires a balance of $50 after payments, she must withdraw 594+50 from the savings account.
=596 + 50
=$644
What can a boosted post help an advertiser achieve?
A boosted post helps an adviser to connect with the audience and gain trust.
Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.
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consider the following closest-point heuristic for building an approximate traveling- salesperson tour whose cost function satisfies the triangle inequality. begin with a trivial cycle consisting of a single arbitrarily chosen vertex. at each step, identify the vertex u that is not on the cycle but whose distance to any vertex on the cycle is minimum. suppose that the vertex on the cycle that is nearest u is vertex v. extend the cycle to include u by inserting u just after v. repeat until all vertices are on the cycle. prove that this heuristic returns a tour whose total cost is not more than twice the cost of an optimal tour.
C' ≤ 2C is true for any number of vertices, thus proving that the heuristic returns a tour whose total cost is not more than twice the cost of an optimal tour.
What is cost?
A cost is the value of money which has been expended to produce something or provide a service and is therefore no longer available for use in production, research, retail, as well as accounting. In the case of an acquisition cost, the money spent on the acquisition is considered the cost. In this instance, money is indeed the input used to obtain the item. This acquisition cost may include both additional transaction costs incurred by acquirer beyond the price paid to a producer, as well as the cost of production even though incurred by original producer. Typically, there is a profit margin added to the price over the cost of production.
Let C be the cost of the optimal tour and C' be the cost of the tour returned by the heuristic.
We can prove this by showing that C' ≤ 2C.
Let S be the set of vertices in the optimal tour and S' be the set of vertices in the tour returned by the heuristic. For each vertex u ∈ S'\S, let v be the vertex on the cycle that is nearest to u. Then, by the triangle inequality, we have that
d(u, v) ≤ d(u, x) + d(x, v)
where x is any vertex in the optimal tour.
Summing over all u ∈ S'\S, we get
∑u∈S'\S d(u, v) ≤ ∑u∈S'\S (d(u, x) + d(x, v))
Since the optimal tour has the minimum cost, we have
C' ≤ ∑u∈S'\S (d(u, x) + d(x, v))
But since ∑u∈S'\S d(u, v) ≤ C' and d(x, v) ≤ C, we get
C' ≤ C' + C
Therefore, C' ≤ 2C, which proves the desired result.
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If average annual income for all workers is $37,000 and a person with a bachelor’s degree can expect to earn 32 percent more than average, what is the average annual income for persons holding bachelor’s degrees (round to the nearest thousand)?
Answer:
$48,840.00
Explanation:
If the average income is $37,000
A graduate expects to earn 32% above average.
The graduate will earn $37,000 +( 32% of $37,000)
=$37,000 +(32/100 + 37,000)
=$37,000 + $11,840.00
= $48,840.00
Answer:
49000
Explanation:
(source) TRUST ME
im being serious tho it is 49000
businesses that engage in ultrahazardous activities are not liable for any injuries the activities cause.
T/F
False. Businesses that engage in ultrahazardous activities are generally held strictly liable for any injuries the activities cause.
Strict liability means that the business can be held responsible for the harm caused, even if they were not negligent or did not intend to cause harm. Ultrahazardous activities are those that involve a high degree of risk and potential for harm, such as using explosives, handling toxic chemicals, or engaging in activities with a high likelihood of causing environmental damage.
Because these activities pose a significant risk to others, businesses must take all necessary precautions and may still be held liable for any injuries or damages that occur as a result of their ultrahazardous activities.
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The best product development strategy for most firms is to:.
Answer:
constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
How much money will be accumulated in 6 years from a deposit of $1000 every 6 months if the interest rate is 4% per two months?
The accumulated amount after 6 years from a deposit of $1000 every 6 months, with an interest rate of 4% per two months, will be approximately $15,312.53.
The deposit of $1000 is made every 6 months, which means there are 2 deposits per year. The interest rate is given as 4% per two months, so we need to calculate the interest rate for 6 months.
Step 1: Calculate the interest rate for 6 months
Since the interest rate is given per two months, we need to find the equivalent rate for 6 months.
For each two-month period, the interest earned is 4% of the deposit.
Therefore, the interest rate for 6 months would be (4% / 2) * 3 = 6%.
Step 2: Calculate the total accumulated amount after 6 years
Since there are 2 deposits per year, the total number of deposits over 6 years would be 6 years * 2 = 12 deposits.
To calculate the accumulated amount, we can use the formula for the future value of an ordinary annuity:
Future Value = Payment * [(1 + Interest Rate) ^ Number of Periods - 1] / Interest Rate
Using the values:
Payment = $1000 (deposit every 6 months)
Interest Rate = 6% (for 6 months)
Number of Periods = 12 (12 deposits over 6 years)
Future Value = $1000 * [(1 + 0.06) ^ 12 - 1] / 0.06
Calculating this expression will give us the direct answer:
Future Value = $15,312.53
Therefore, the accumulated amount after 6 years from a deposit of $1000 every 6 months, with an interest rate of 4% per two months, will be approximately $15,312.53.
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According to taylor's principles, which of these might help to improve workers' productivity?
According to Taylors principles the option that wouldn't help to improve the productivity of workers would be to carefully select workers according to their abilities and give workers training.
What does it mean to give workers training?This has to do with all of the activities that the business would have to carry out by carefully choosing to ensure that the workers are well trained in all of the departments that they are to work. The business would do this by organizing trainings and other forms of seminars foir the the workers.
What it means to work according to ability?This means getting people to work in the areas that they are known to be best suited. Based on the ways that they have shown their skills and their experiences, they can be selected to work in the departments.
Hence we can say that According to Taylors principles the option that wouldn help to improve the productivity of workers would be to carefully select workers according to their abilities and give workers training.
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Choose the correct terms to complete the sentence.
Larry owns his own gym. He is the only owner. His liability is 1.______
a. unlimited
b. partnership
c. limited
d. undetermined
and he runs a 2._____
a. public company
b. sole proprietorship
c. partnership
Neville is the CEO and shareholder of a company that sells household cleaning products. The company has 75 shareholders and is not
traded on a stock exchange. Neville's company is a 3._____
a. sole proprietorship
b. partnership
c. public company
d. private-limited company
and his liability is 4.______
a. limited
b. unlimited
c. undetermined
Answer:
unlimited
sole proprietorship
private-limited company
limited
Explanation:
alpha industries are considering a project with an initial cost of $7.5 million. the project will produce cash inflows of $1.55 million per year for 7 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.46 percent and a cost of equity of 11.17 percent. the debt equity ratio is 15,55 and the tax rate is 39 percent. what is the net present value of the project?
The net present value of the project is $0.95 million.
To calculate the net present value (NPV) of the project, we need to discount the cash flows by the weighted average cost of capital (WACC):
WACC = (E/V) * Re + (D/V) * Rd * (1-Tc)
where:
E/V = proportion of equity in the capital structure
D/V = proportion of debt in the capital structure
Re = cost of equity
Rd = cost of debt
Tc = corporate tax rate
First, we need to calculate the weights for equity and debt:
E/V = 1 / (1 + D/E) = 1 / (1 + 15.55) = 0.0602
D/V = 1 - E/V = 1 - 0.0602 = 0.9398
Next, we can calculate the WACC:
WACC = (0.0602 * 0.1117) + (0.9398 * 0.0546 * (1 - 0.39)) = 0.0805
Now we can calculate the NPV using the formula:
NPV = -Initial cost + Sum(Cash flows / (1 + WACC)^t)
where:
Initial cost = $7.5 million
Cash flows = $1.55 million per year for 7 years
t = year of cash flow
NPV = -$7.5M + ($1.55M / (1 + 0.0805)^1) + ($1.55M / (1 + 0.0805)^2) + ... + ($1.55M / (1 + 0.0805)^7)
NPV = -$7.5M + $1.43M + $1.32M + ... + $0.56M
NPV = $0.95M
Therefore, the net present value of the project is $0.95 million. Since the NPV is positive, the project is expected to generate a return greater than the required rate of return and would be considered a worthwhile investment.
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warren buffet has recommended to his heirs (when he passes) that they buy & hold an index fund with the money they inherit. true or false
True. Warren Buffett, one of the most successful investors in the world, has been a long-time proponent of index funds as a simple and low-cost way for individual investors to achieve market returns over the long-term.
In fact, in his annual letters to shareholders of Berkshire Hathaway, the conglomerate he leads as CEO, he has often recommended that they invest in low-cost index funds rather than try to pick individual stocks. In addition, Buffett has also mentioned that he has advised his heirs to invest their inheritance in an index fund. He believes that investing in a diversified index fund that tracks the performance of the overall stock market is a smart and safe way to grow one's wealth over time. By avoiding the costs and risks associated with active stock-picking, individuals can benefit from the power of compounding and the long-term growth of the economy. Therefore, it is true that Warren Buffett has recommended to his heirs to buy and hold an index fund with the money they inherit.
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Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor $ 3.50 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 5,500 If 4,000 units are sold, the variable cost per unit sold is closest to: Multiple Choice $14.40 $13.60 $16.90 $12.20
The variable cost per unit sold for Schwiesow Corporation is $13.60, calculated by adding up the direct materials, direct labor, and other variable costs.
To calculate the variable cost per unit sold, we need to add up the direct materials, direct labor, variable manufacturing overhead, sales commissions, and variable administrative expense, which gives us a total of $13.60 per unit.
Here's the breakdown:
Direct materials: $7.05
Direct labor: $3.50
Variable manufacturing overhead: $1.65
Sales commissions: $1.00
Variable administrative expense: $0.40
Total variable cost per unit: $13.60
Fixed manufacturing overhead and fixed selling and administrative expense are not included in the variable cost per unit calculation because they do not vary with the number of units produced or sold.
Therefore, the closest option to the variable cost per unit sold is $13.60.
It's important to note that knowing the variable cost per unit is useful in calculating the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. The contribution margin per unit is then used to calculate the break-even point and to determine the profit or loss at different levels of sales.
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PLSS HELP -->> societies make decisions about who gets the goods they produce by:
A. dividing goods based on the factors of production used to make them
B. determining whether a good has a high enough level of scarcity
C. considering whether the government should distribute the goods
D. differentiating between goods created using physical and human capital
Answer: C
Explanation: it’s c
Societies decide the distribution of goods being produced by considering if the government should take control of the same.
What is distribution of goods?The allocation of goods being produced in a society, which may or may not be under authority of a person, is known as distribution of goods.
Hence, option C holds true regarding the distribution of goods.
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Explain the role of public relations in developing and maintaining a corporate image.
By overseeing communication and relationships between an organisation and its stakeholders, public relations plays a critical part in creating and sustaining a company image.
To influence the perception, reputation, and overall image of the business, strategic communication is used. To improve the public's view of the company, public relations experts take part in activities like media relations, crisis management, community involvement, and employee communications. Public relations contributes to the development of trust, credibility, and goodwill among stakeholders by clearly articulating the company's ideals, accomplishments, and social responsibility efforts. It helps build the company's brand, draw in clients, investors, and talent while minimising reputational hazards.
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Fill in the blank: _____ give the project managers an opportunity to seek input and conduct brainstorming sessions.
PLZ HELP ON TIMER CARRERS!!!!! 15 POINTS
The advantages of being an entrepreneur are _____.
a.
excitement, independence, and financial risk
b.
flexibility, independence, and salary potential
c.
short working hours, independence, and financial risk
d.
administration, short working hours, and excitement
Please select the best answer from the choices provided
Answer:
B.
Explanation:
It seems most reasonable.
When purchasing a business, a buyer is required to notify all creditors of the impending sale. This is a requirement of which of the following
When purchasing a business, the buyer is required to notify all creditors of the impending sale in accordance with the UCC. This requirement ensures that creditors are informed and can protect their rights during the change in ownership.
When purchasing a business, a buyer is required to notify all creditors of the impending sale. This is a requirement of the UCC (Uniform Commercial Code).The Uniform Commercial Code is a set of laws that governs commercial transactions in the United States. It provides a standardized framework for various aspects of business transactions, including the sale of goods and the transfer of ownership.
Under the UCC, when a business is being sold, the buyer is obligated to notify all creditors of the impending sale. This requirement is intended to protect the interests of the creditors by ensuring that they are aware of the change in ownership and can take any necessary actions to protect their rights.
By notifying the creditors, the buyer allows them to make informed decisions regarding the sale, such as whether to continue extending credit to the business or to seek payment for any outstanding debts. It also helps to prevent any potential disputes or legal issues that may arise from the change in ownership.
The specific process for notifying creditors may vary depending on the jurisdiction and the nature of the business. However, it generally involves sending written notice to each creditor, either by mail or electronically, and providing them with the necessary information about the impending sale.
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Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can be claimed on this property.
Answer:
Dismantling cost is the expense which is caused when the asset is about to bring in its original state when it was not used.
Explanation:
To: Director Finance
From: Business Analyst
Subject: Cost recovery for dismantling
It is to bring into your knowledge that the land area near the plant was used by our company several years ago. The company has decided to sell it to one of our client. He has agreed to purchase the land but the erosion caused due to plant and manufacturing activities need to be restored. For this purpose we have decided to fill the erosion holes with waste material.
Your Kind approval is required for the process.
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock.
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts.
1) The analysis of transactions for Elegant Lawns using the accounting equation is as follows:
Transaction and Date Assets = Liabilities + Equity
a. May 15: $7,000
$3,000 $10,000
b. May 21: $500 $500
c. May 25: $4,000 $4,000
d. May 30: $1,000 $1,000
Totals $15,500 $1,500 $14,000
What is the accounting equation?The accounting equation states that with each business transaction, the Assets = Liabilities + Equity.
2) The journal entries for the transactions are as follows:
a. May 15: Debit Cash $7,000
Debit Equipment $3,000
Credit Common Stock $10,000
b. May 21: Debit Office Supplies $500
Credit Accounts Payable $500
c. May 25: Debit Cash $4,000
Credit Service Revenue $4,000
d. May 30: Debit Cash $1,000
Credit Deferred Revenue $1,000
3) The T-accounts to represent ledger accounts are as follows:
Cash AccountDate Account Titles Debit Credit
a. May 15 Common Stock $7,000
c. May 25 Service Revenue $4,000
d. May 30 Deferred Revenue $1,000
Equipment AccountDate Account Titles Debit Credit
a. May 15 Common Stock $3,000
Office SuppliesDate Account Titles Debit Credit
b. May 21 Accounts Payable $500
Service RevenueDate Account Titles Debit Credit
c. May 25 Cash $4,000
Deferred RevenueDate Account Titles Debit Credit
d. May 30: Cash $1,000
Accounts PayableDate Account Titles Debit Credit
b. May 21: Office Supplies $500
Common StockDate Account Titles Debit Credit
a. May 15 Cash $7,000
a. May 15 Equipment $3,000
Transaction Analysis:a. May 15: Cash $7,000 Equipment $3,000 Common Stock $10,000
b. May 21: Office Supplies $500 Accounts Payable $500
c. May 25: Cash $4,000 Service Revenue $4,000
d. May 30: Cash $1,000 Deferred Revenue $1,000
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If the Retained Earnings balance at the end of year three is $1,000, what was the total amount of dividends paid over these three years
Based on these scenarios, the total amount of dividends paid over the three years could be between $4,000 and $14,000. The exact amount will depend on the actual net income for each year.
The Retained Earnings balance at the end of year three is $1,000. We need to find out the total amount of dividends paid over these three years. In order to find the total amount of dividends paid over these three years, we will use the formula: Dividends Paid = Net Income - Retained Earnings
Since Retained Earnings at the end of year three is $1,000, we know that this amount comes from net income minus dividends paid over the three years.
Therefore, Dividends Paid = Net Income - Retained Earnings= Net Income - $1,000
Since we do not have any information about net income, we cannot calculate the exact amount of dividends paid. However, we can provide a possible range of values for dividends paid based on different net income scenarios.
Let's assume that the net income over the three years was $5,000, $10,000, and $15,000 respectively.
Then, using the formula above, we get:
Dividends Paid = Net Income - $1,000= $5,000 - $1,000 = $4,000 (minimum possible dividends paid)= $10,000 - $1,000 = $9,000 (medium range of dividends paid)= $15,000 - $1,000 = $14,000 (maximum possible dividends paid)
Based on these assumptions, the total amount of dividends paid over the next three years might range between $4,000 and $14,000. The precise amount will be determined by the actual net income for each year.
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