X Company prepares monthly financial statements. On October 31, its accountant made adjusting entries to recognize:
7. What was the effect of these entries on Retained Earnings in October?
A: $-9,983 | B: $-13,277 | C: $-17,659 | D: $-23,486 | E: $-31,237 | F: $-41,545 | G: $-55,255 | H: $-73,489 |
Tries 0/2 |
8. What was the effect of these entries on total equities in October?
A: $-4,992 | B: $-5,840 | C: $-6,833 | D: $-7,995 | E: $-9,354 | F: $-10,944 | G: $-12,804 | H: $-14,981 |
ANSWER ;-
(7)
Answer is 'C'
Effect on retained earnings: | |
Unpaid interest expense | -5,670 |
Accrued wages | -1,045 |
Rent and insurance | -3,074 |
Depreciation | -7,870 |
Net Effect on retained earnings |
-17,659 |
Retained earnings would decrease by $17,659 |
(8)
Answer is 'F'
The effect of these entries on total equities in October: $-10,944
___________________________________
if you have any query please ask me in comment box i am here to helps you don't give direct Thumbs down.if you satisfied my work give Thumbs UP
*****THANK YOU******
X Company prepares monthly financial statements. On October 31, its accountant made adjusting entries to recognize: $5,670 of unpaid interest expense on a bank loan $1,045 of wages that were earned b...
itiing Concepts Questions 7 and 8 refer to the following entries: X Company prepares monthly financial statements. On October 31, its accountant made adjusting entries to recognize $5,635 of unpaid interest expense on a bank loan $1,975 of wages that were earned by employees but not paid . $3,750 of rent and insurance that had expired . $7,176 of depreciation 8 pt . What was the effecet of these entries on Retained Earnings in October? 7. AO S-18,536 BO $-23,170...
X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31: On October 1, the company paid rent for the final three months of the year. Rent was $1,500 per month. On October 1, the company purchased equipment that cost $20,000, borrowing the full amount from a bank. The equipment has a life of four years and a salvage value at that time of $2,000. The company will repay...
X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July: Balance Sheet July 1 Assets Equities Cash $52,438 Accounts Payable $53,176 Accounts Receivable 34,819 Notes Payable 30,627 Inventory 80,386 Prepaid Rent 6,377 Paid-In Capital 227,278 Equipment 211,910 Retained Earnings 74,849 Total Assets $385,930 Total Equities $385,930 The following summary transactions occurred during July: Sold stock to investors for $42,000. Borrowed $26,000 from a bank and paid off a $13,000...
web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July: Balance Sheet July 1 Equities Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets $50,369 Accounts Payable 34,152 Notes Payable $55,049 31,017 83,921 6,383 Paid-In Capital 210,794 Retained Earnings 227,096 72,457 $385,619 $385,619 Total Equities The following summary transactions occurred during July: 1. Sold stock to investors for $43,000 2. Borrowed $27,000 from a bank and paid...