Homework Answers
1) When we debit wages expense, we increase expenses and hence decrease net income which consequently decreases stockholder's equity. Also, crediting wages payable would increase liabilities. There is no effect on total assets.
Also, this is an example of accrued wages because the expense has been incurred but no payment has been made.
Hence, the correct answer is A) total assets do not change.
2) Value of machine = $200,000 * present value factor (5%, 2 periods)
Value of machine = $200,000 * 0.907
Value of machine = $181,400
Hence, the correct answer is C) $181,400
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Incorrect Question 6 0/2.5 pts On January 1, 2015, Acorn Corporation bought a new machine. Acorn signed a note agreeing to pay $200,000 on December 31, 2017. The market interest rate for this note is 5%. What is the amount that the machine is put on the books for on January 1, 2015? $172,760 • $200,000 $ 181,400 $190,480
i need help with these three questions Incorrect Question 2 0/1.25 pts 0.678 g of KHP...
i need help with these three questions
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i need help with these three questions
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