6. Assume that r@ktas Inc., sold inventory on account for $ 2,000. How would this transaction affect r@ktas' accounting equation? a. Increase both assets and liabilities by $ 2,000. b. Increase both assets and shareholders' equity by $ 2,000. c. Increase both liabilities and shareholders' equity by $ 2,000. d. Increase shareholders' equity $ 72,000.

6. Assume that r@ktas Inc., sold inventory on account for $ 2,000. How would this transaction affect r@ktas' accounting equation? a. Increase both assets and liabilities by $ 2,000. b. Increase both assets and shareholders' equity by $ 2,000. c. Increase both liabilities and shareholders' equity by $ 2,000. d. Increase shareholders' equity $ 72,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NOTE: PLEASE ANSWER A, B, C AND D ONLY!!! ASAP
find the missing value
You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet. Cash $ 12,330 Accounts receivable 20,370 Inventory 36,900 Property, plant, and equipment, net of depreciation 120,500 Accounts payable 22,640 Common stock 153,800 Retained earnings 12,460 Additional information concerning Splish Brothers Inc. is as follows. 1. Gross profit is 26% of sales. 2. Actual and budgeted sales data: March (actual) $47,000 April (budgeted) 73,100 3. Sales are both cash and credit. Cash collections expected in April are: March $18,800 (40% of $47,000) April 43,860 (60% of $73,100) $62,660 4. Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: Purchases March $22,640…
nces Blooming Flower Company was started in Year 1 when it acquired $60,500 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Required: Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Complete this question by entering your answers in the tabs below. Balance Sheets Assets Cash Merchandise inventory Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Total assets Liabilities Stockholders' equity Common stock Retained earnings Year 1 $ 22,200 26,400 12,500…
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Ll.99.
The following infornation relates to Hodge Unlimited for the past two years. Account Net sales (all credit) Cost of goods sold Gross profit Income from operations Interest expense Net income Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Total long - term assets Total current liabilities Total long- term liabilities Common stock, no par, 2,500 shares, market value $96 per share Retained earnings The current ratio for the current year is closest to Current year $219,000 S125,000 $94,000 $32,000 $2,000 S25,000 $75,000 $26.000 $65,000 $2,000 $168,000 $162,750 $110,000 $22,000 $40,000 $158,750 Prior year $180,000 $110,000 $70,000 $30,000 $7,000 $18.000 S17,000 $35,000 $60,000 $1,000 $113,000 $187,751 S90,000 $78,000 $40,000 $92,751 A. 1.53. B. 2.24. C. 1.29. D. 1.51.