On September 30, ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? Multiple Choice Expenses decreased, liabilities decreased, and assets decreased.
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Introduction:-
The following balance sheet (Accounting) equation used as follows under:-
Assets = Liabilities + Owners equity
In this problem,
ABC paid employee salaries of $7,000, including $1,000 it owed to its employees last month.
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- Hendrickson Inc. ended the current year with Revenues of $245,459 COGS of $123,492 Wage Expense of $52.770 If Retained Earnings had a beginning balance for the current year of $200,000, what will the ending Retained Earnings balance be for the year after all accounting processes are complete?The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the companys controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
- For a recent year, Microsoft Corporation reported short-term unearned revenue of $23,223 million. For the same year, Microsoft also reported total revenues of $93,580 million. Assume that Microsoft recognized $2,000 million of unearned revenue as revenue during the year, what entry for unearned revenue did Microsoft make during the year? Indicate each account affected, whether the account is increased or decreased, and the amount. What percentage of total revenues is the short-term unearned revenue?The income statement for Piura Merchandising Corporation is as follows: Other information is as follows: a. Accounts payable decreased by $20,000 during the year. b. Accounts receivable increased by $20,000. c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000. d. Prepaid insurance increased by $24,000 during year. Required: Prepare a schedule that provides the operating cash flows for the year using the indirect method.Quail Company's customers made payments totaling $6,400 on their accounts. Which accounts are affected by this transaction? Multiple Choice Service Revenue and Retained Earnings increase by $6,400. Cash and Service Revenue increase by $6,400. Liabilities and Customer Expense increase by $6,400. Cash increases by $6,400 and Accounts Receivable decreases by $6,400. Cash and liabilities decrease by $6,400.
- In its first year of operations, Maria Corp.earned 48,100 in service revenue.Of that amount, 8,200 was on account and the remainder, 39, 900, was collected in cash from customers. The company incurred various expenses totalling 32,300, of which 28,800 was paid in cash. At the year end, 3,500 was still owing on account. In addition, Maria prepaid 2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. maria expects to owe 3000 of income tax when it files its corporate income tax return after year end.Major Medical reported a net loss—AOCI in last year’s balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $4 million. Also, the $8 million actual return on plan assets fell short of the $9 million expected return. How does this gain and loss affect Major’s income statement, statement of comprehensive income, and balance sheet?Andrews Medical reported a net loss–AOCI in last year’s balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $4 million. Also, the $8 million actual return on plan assets fell short of the $9 million expected return. How does this gain and loss affect Andrews’ income statement, statement of comprehensive income, and balance sheet?
- Bonobo's activities for the year ended December 31, 2018 included the following: • Income tax expense for the year was $30,000. • Sales for the year were $650,000. • Accounts payable decreased $10,000 in 2018. • Selling and administration expenses for the year totaled $200,000. • Accounts receivable increased $20,000 in 2018. • The Company's cost of goods sold in 2018 was $325,000. • The Company's inventory decreased $15,000 during the year. What is the cash receipts from customers under the direct method? O $110,000 $630,000 $320,000 $670,000Sherriane Baby Products’ salaries expense was $17 million. What is the amount of cash Sherriane paid to employees during the reporting period if its salaries payable increased by $3 million? Prepare a summary entry that represents the net effect of salaries expense incurred and paid during the reporting period.Accordingly, 15% of rent, depreciation, and utility expenses pertain to the sales office while the rest pertains to the corporate office. Questions: How much is the net sales for the year? How much is the cost of sales for the year? How much is the gross profit for the year? How much is the net income for the year? Prepare a statement of comprehensive income. Prepare a financial statement.