Answers
Answer:
L. Lyons Company
Correct Journal Entry
Debit L.Lyons, Drawings $100
Credit Cash $100
To record the cash withdrawn by L. Lyons for personal use.
Explanation:
When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business. Cash as an asset is also reduced by the same amount. Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.
Final answer:
L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.
Explanation:
When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:
- Debit: Owner's Draw $100
- Credit: Cash/Bank $100
Learn more about Journal Entry here:
#SPJ3
Related Questions
Sweet Treats sells ice cream cones for $4.25 per customer. Variable costs are $1.25 per cone. Fixed costs are $3,300 per month. What is the company's contribution margin ratio?
Stanley Roper has $2,300 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,800 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to deliver on his promise? (Answer needs to be stated as a decimal. For example: .1192) Round to four decimal places.
The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________. Group of answer choices failure to provide value-priced products for online customers protecting the privacy of knowing and unknowing customers providing too many alternative products online which confuses customers rarely following the marketing orientation when devising promotional offers online failing to reach their target customers through online marketing
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $43,245.00 exactly 5.00 years from today. Assuming that Derek believes the appropriate discount rate is 13.00%, how much is he willing to pay for this money machine?
Answers
Answer:
Answer for the question :
Joan is a single individual who works for Big Petroleum, Inc. During all of 2019, she is stationed in West Africa. She pays West African taxes of $20,000 on her Big Petroleum salary of $92,000. Her taxable income without considering her salary from Big is $36,000. How should Joan treat the salary she receives from Big Petroleum on her 2019 U.S. tax return?
is explained in attachment.
Explanation:
See attachment for detailed answer.
Final answer:
Joan should count both her local and Big Petroleum incomes but can use the Foreign Earned Income Exclusion for the latter. She can also claim a foreign tax credit for the taxes she paid in West Africa.
Explanation:
In the case of Joan and her 2019 U.S. tax return, she must declare the total income she earned in that year, including her salary from Big Petroleum, Inc., which was earned while she was stationed in West Africa. Still, due to U.S. tax laws, Joan can claim a Foreign Earned Income Exclusion (FEIE).
The FEIE for 2019 allows U.S. citizens or residents who live outside the U.S. to exclude up to $105,900 in foreign earned income. Therefore, Joan, who made $92,000 in West Africa, can exclude this amount from her taxable income because it is less than the FEIE limit.
However, she should remember to include the remaining $36,000 she made outside her Big Petroleum salary in her U.S. taxable income. The West African taxes Joan paid do not directly influence her U.S. taxable income but could potentially be claimed as a foreign tax credit to avoid double taxation.
Learn more about Foreign Earned Income Exclusion here:
#SPJ3
Answers
Answer:
A = $3136.51875
Explanation:
Given that :
The principal = $3,000.00
Rate = 9%
Time = 6 months
Since the amount is compounded quarterly;
r = 9/4 = 2.25 %
t = 6 months = 2 quarter
Using the formula:
A = P(1+r/100)^t
A = 3000.00(1+ 2.25/100)^2
A = 3000.00( 1+ 0.0225)^2
A = 3000.00 (1.0225)^2
A = 3000.00 (1.04550625)
A = $3136.51875
b. proof that the seller used the term "warrant."
c. proof that the seller is a merchant.
d. none of the above
Answers
Answer: (D)
None of the above
Explanation:
Implied warranty of fitness for a particular purpose is a warranty that a seller has knowledge about a product and the purpose of that product, and the seller guarantees the buyer that the product is fit to be used for that purpose.
The requirements therefore are that;
• The seller knows about the product required by the buyer, and its purpose.
• The seller knows the buyer is relying on his expertise.
Therefore, none of the options provided above are requirements of implied warranty of fitness for a particular purpose.
Answers
Answer:
Accounts Receivables Turnover Ratio = = 10 times.
Explanation:
Accounts Receivables Turnover ratio =
Here Net Credit Sales = $6.5 million
Accounts Receivables Opening Balance = $600,000
Accounts Receivables Closing Balance = $700,000
Average Accounts Receivable Balance =
Accounts Receivables Turnover Ratio = = 10 times.
This shows that accounts receivables are on an average 1/10th of credit sales.
Final Answer
Accounts Receivables Turnover Ratio = = 10 times.
2. Depreciation expense
3. Issuance of a note payable
4. Increase in inventory
Answers
Answer:
Patent-investing activity
depreciation expense-operating activity
issuance of note payable-financing activity
Increase in inventory-operating activity
Explanation:
The purchase of patent as intangible asset is reported as an investing activity item as an outflow of cash from the business.
Depreciation expense is meant to added to net income in arriving at the net cash flows from operating activities
Issuance of a note payable is a financing item under the financing activities' segment of the cash flow as an inflow.
Increase in inventory is increase in net working capital which is deducted as an operating activity item .
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Issuance of a note payable - Financing activity
4. Increase in inventory - Operating activity
Explanation:
Operating activity of cash flows include cash inflows and cash outflows from day to day business activities. This includes cash flows use from ongoing business activities.
Investing activity of cash flows includes cash inflows and cash outflows from investments of the business. This includes purchase of assets, sale of assets, investment in securities.
Financing activity of cash flows include cash inflows and cash outflows to fund the company. The activities that are incurred to fiance the business are classified as financing activity.
Answers
Answer:
$190,000
Explanation:
Calculation for total book tax expense
Using this formula
Total book tax expense=Total book tax expense+Valuation allowance
Let plug in the formula
Total book tax expense=$160,000+$30,000
Total book tax expense=$190,000
Therefore Daisy's total book tax expense will be $190,000