d.. Measure the profitability of the company in order to assist employees with m
ID: 2567048 • Letter: D
Question
d.. Measure the profitability of the company in order to assist employees with m os and communicate those measures to external users to make decisios 4. Steve's BarBQ borrowed $10,000 to start the business on October 1,2016. The interest and principal were to be paid in March 2017. The interest rate is 7% annually. What entry was made at the end ot tree year Dece cash 1ooo 1, 2016? Make the entry in proper form 14.9 Rank nterest Payable 5. At the beginning of the year, Southside Company assets were $590,000 and Stockholders Equity was $275,000. During the year, Assets increased $75,000 and Liabilities decreased $40,000 at the end of the year. A 5000 6. Looking at the Disney balance sheet, prove that the accounting equation works for 2018. This would be showing that assets equal liabilities plus stockholders' equity+ a33- Unearned revenues are recorded by companies that a. Receive money at the time the performance of a service is complete 7. Receive money in advance of the performance of a service c. Pay money at the time the performance of a service is complete d. Pay money in advance of the performance of a serviceExplanation / Answer
4.
Interest Expense A/c Dr $175
To Interest Payable A/c $175
Interest Payable A/c Dr $175
To Lender A/c $175
5. If assets have increased and liabilities have decreased, then there would be a total increase in the value of Shareholders' Equity. Here, Assets have increased by $75,000 and liabilities have increased by $40,000. Hence, there would be a over all increase of $115,000 ($75000 + $ 40000) in shareholders' equity.
Hence, the Shareholders' Equity at the year end is $390,000 ($275000 + $115000).
Year begining:
Year ending:
7. Unearned Revenues are those which are received but cannot be considered as revenue as service is not provided nor goods are not sold (Invoice not raised). This is nothing but advance amount received.
Hence, the answer is b. Receive money in advance of the performance of a service.
Equity and Liabilities Amount $ Assets Amount $ Shareholders' Equity 275000 Assets 590000 Liabilities (B/F) 315000 Total 590000 Total 590000Related Questions
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