Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson...
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson would perform $6,000 of services to a client that had previously prepaid Thompson $26,000 in advance, then how would assets, liabilities and equity be now?
| A. |
Assets = $166,000; Liabilities = $41,000; Equity = $125,000 |
|
| B. |
no change in balances |
|
| C. |
Assets = $160,000; Liabilities = $35,000; Equity = $125,000 |
|
| D. |
Assets = $160,000; Liabilities = $47,000; Equity = $113,000 |
Homework Answers
Solution:
The correct option is C i.e
Assets. =160000
Liabilties. =35000
Equity. = 125000
Explanation
Thompson has received 26000 in advance from the coustomer but services yet has not been performed which means it has an obligation or liabilty of 26000
Now thompson performed services of amounting 6000, which reduce its obligation or liabilty by 6000 and that is included in equity as the revenue earned
Hence the liabilties will reduce by 6000 and equity will increase by 6000
Balance will be
Iiabilty = 41000
Less. 6000
Balance. 35000
Equity. =119000
Add revenue. = 6000
Balance. =125000
Hence the other options A/B/D are not correct.
Add Answer to:
Thompson Corporation currently has assets of $160,000,
liabilities of $41,000, and equity of $119,000. If Thompson...
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson...
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson received $3,000 worth of services that it needed and was billed for those services later, then how would assets, liabilities and equity look now? A. Assets = $160,000; Liabilities = $44,000; Equity = $116,000 B. no change in balances C. Assets = $157,000; Liabilities = $41,000; Equity = $116,000 D. Assets = $157,000; Liabilities = $38,000; Equity = $119,000
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson collected...
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson collected $14,000 cash from a previous client that was owing Thompson, from a prior sale on credit, then how would assets, liabilities and equity look now? A. no change in balances B. Assets = $174,000; Liabilities = $41,000; Equity = $133,000 C. Assets = $174,000; Liabilities = $24,000; Equity = $150,000 D. Assets = $174,000; Liabilities = $58,000; Equity = $116,000
Calculator 1.300 The assets and liabilities of Thompson Computer Services at March 31, the end of...
Calculator 1.300 The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $132,800 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $26,000 in stock. Accounts payable $2,000 Miscellaneous Expense $1,040 Accounts receivable 10,340 Office expense Cash 21,420 Supplies 1,670 Fees earned 72,590 Wages expense...
Calculator The assets and liabilities of Thompson Computer Services at March 31, the end of the...
Calculator The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. TI common stock was $127,300 and the retained earnings were $65,000 at April 1, the beginning of the current year. During the year, shareholders purchased an a $25,700 in stock $2,000 $1,010 Accounts payable Miscellaneous Expense Office expense 10,340 Accounts receivable 1,290 1,670 Cash 21,420 Supplies 23,380 Fees earned Wages expense...
The following are the ending balances of accounts at December 31, 2021. for the Valley Pump...
The following are the ending balances of accounts at December 31, 2021. for the Valley Pump Corporation Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Debits Credits 44,000 94,000 119,000 $ 29,000 82,000 158,000 395,000 119,000 113,000 44,000 31,000 51,000 84,000 39,000 345,000 6,000...
CAILIDE 3-9 Miyu Daimle be prepaiduum (LUS-2, 3-3) Hook The following are the ending balances of...
CAILIDE 3-9 Miyu Daimle be prepaiduum (LUS-2, 3-3) Hook The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Debits Credits Cash $ Accounts receivable 44,000 94,000 Inventory 119,000 Interest payable $ 29,000 Investnent in equity securities 82,000 Land 158,000 Buildings 395,000 Accumulated depreciation-buildings 119,000 Equipment 113,000 Accumulated depreciation equipment 44,000 Copyright (net) 31,600 Prepaid expenses (next 12 months) 51,600 Accounts payable 84,000 Deferred revenue (next 12 months) 39,000 Notes payable...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities Cash Accounts receivable Inventory Prepaid expenses $ 22,000 30,000 60,000 S 20,000 Accounts payable 25,000 Notes payable 35,000 Bonds payable 13,000 Fixed Assets Stockholders' Equity $ 30,000 65,000 35,000 59,000 $301,000 Gross plant and equipment Less: Accumulated depreciation $ 260,000 Preferred stock 52,000 Common stock SA Paid in Capital $ 208,000Retained earnings Net plant and equipment Total assets 301,000 Total liabilities and stockholders' equity...
ABC Corporation has total assets of $1,000. Currently, it is an all equity firm. There are...
ABC Corporation has total assets of $1,000. Currently, it is an all equity firm. There are three possible economic scenarios and the ROA in these scenarios are as follows: in recession, the ROA is 5%; in the expected scenario, the ROA is 15%; and in expansion, the ROA is 25%. The current stock price is $10. Now assume that, to begin with, ABC Corporation is a levered firm with a debt-equity ratio of 1:4. Everything else is the same as...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 20,000 Accounts payable $ 22,000 Accounts receivable 25,000 Notes payable 30,000 Inventory 35,000 Bonds payable 60,000 Prepaid expenses 13,000 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 260,000 Preferred stock $ 30,000 Less: Accumulated depreciation 52,000 Common stock 65,000 Paid in Capital 35,000 Net plant and equipment $ 208,000 Retained earnings 59,000 Total assets $ 301,000 Total liabilities and stockholders’ equity...
Transaction: Total Net Income Total Assets Liabilities Total Equity Total Equity Where can you go to...
Transaction: Total Net Income Total Assets Liabilities Total Equity Total Equity Where can you go to find each of your answers? Income Balance sheet Balance sheet Balance sheet Apr. 1 Richards invests $134,000 cash along with office equipment valued at $35,000 in the company. 0 $ 169,000 $ 0 $ 169,000 Apr. 2 The company prepaid $19,800 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. 169,000 0 169,000 Apr....
Calculator 1.300 The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $132,800 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $26,000 in stock. Accounts payable $2,000 Miscellaneous Expense $1,040 Accounts receivable 10,340 Office expense Cash 21,420 Supplies 1,670 Fees earned 72,590 Wages expense...
Calculator The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. TI common stock was $127,300 and the retained earnings were $65,000 at April 1, the beginning of the current year. During the year, shareholders purchased an a $25,700 in stock $2,000 $1,010 Accounts payable Miscellaneous Expense Office expense 10,340 Accounts receivable 1,290 1,670 Cash 21,420 Supplies 23,380 Fees earned Wages expense...
The following are the ending balances of accounts at December 31, 2021. for the Valley Pump Corporation Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Debits Credits 44,000 94,000 119,000 $ 29,000 82,000 158,000 395,000 119,000 113,000 44,000 31,000 51,000 84,000 39,000 345,000 6,000...
CAILIDE 3-9 Miyu Daimle be prepaiduum (LUS-2, 3-3) Hook The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Debits Credits Cash $ Accounts receivable 44,000 94,000 Inventory 119,000 Interest payable $ 29,000 Investnent in equity securities 82,000 Land 158,000 Buildings 395,000 Accumulated depreciation-buildings 119,000 Equipment 113,000 Accumulated depreciation equipment 44,000 Copyright (net) 31,600 Prepaid expenses (next 12 months) 51,600 Accounts payable 84,000 Deferred revenue (next 12 months) 39,000 Notes payable...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities Cash Accounts receivable Inventory Prepaid expenses $ 22,000 30,000 60,000 S 20,000 Accounts payable 25,000 Notes payable 35,000 Bonds payable 13,000 Fixed Assets Stockholders' Equity $ 30,000 65,000 35,000 59,000 $301,000 Gross plant and equipment Less: Accumulated depreciation $ 260,000 Preferred stock 52,000 Common stock SA Paid in Capital $ 208,000Retained earnings Net plant and equipment Total assets 301,000 Total liabilities and stockholders' equity...
Transaction: Total Net Income Total Assets Liabilities Total Equity Total Equity Where can you go to find each of your answers? Income Balance sheet Balance sheet Balance sheet Apr. 1 Richards invests $134,000 cash along with office equipment valued at $35,000 in the company. 0 $ 169,000 $ 0 $ 169,000 Apr. 2 The company prepaid $19,800 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. 169,000 0 169,000 Apr....
Most questions answered within 3 hours.
-
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 1 hour ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 1 hour ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 4 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 4 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 4 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 4 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 4 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 4 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 4 hours ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 5 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 4 hours ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 5 hours ago