Alpha Company has assets of $638,000, liabilities of $269,000, and equity of $369,000. It buys office equipment on credit for $94,000. What would be the effects of this transaction on the accounting equation? Multiple Choice Assets increase by $94,000 and expenses increase by $94,000. Assets increase by $94,000 and expenses decrease by $94,000. Liabilities increase by $94,000 and expenses decrease by $94,000. Assets decrease by $94,000 and expenses decrease by $94,000. Assets increase by $94,000 and liabilities increase by $94,000.

Alpha Company has assets of $638,000, liabilities of $269,000, and equity of $369,000. It buys office equipment on credit for $94,000. What would be the effects of this transaction on the accounting equation? Multiple Choice Assets increase by $94,000 and expenses increase by $94,000. Assets increase by $94,000 and expenses decrease by $94,000. Liabilities increase by $94,000 and expenses decrease by $94,000. Assets decrease by $94,000 and expenses decrease by $94,000. Assets increase by $94,000 and liabilities increase by $94,000.

Name: Alpha Company has assets of $638,000, liabilities of $269,000, and eq
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Alpha Company has assets of $638,000, liabilities of $269,000, and equity of $369,000. It buys offlce equipment on credit for $94,00o. What would bethe effects of this transaction on the accounting equation?Multiple ChoiceAssets increase by $94,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jefferson Handyman Services has total assets for the year of $18,400 and total liabilities of $9,860. Requirements 1. Use the accounting equation to solve for equity. 2. If next year's assets increased by $3,800 and equity decreased by $3,500, what would be the amount of total liabilities for Jefferson Handyman Services? Requirement 1. Use the accounting equation to solve for equity. Begin by solving for the accounting equation. Then use the formula to solve for equity. The company has equity of Requirement 2. If next year's assets increased by $3,800 and equity decreased by $3,500, what would be the amount of total liabilities for Jefferson Handyman Services? The company has liabilities of
Pharoah Company had the following account balances: Sales revenue $ 447000 Cost of goods sold 210000 Salaries and wages expense 30500 Depreciation expense 59500 Dividend revenue 10000 Utilities expense 22000 Rent revenue 58500 Interest expense 35500 Sales returns and allow. 33500 Advertising expense 38000 What would Pharoah report as total expenses in a single-step income statement? $429k $185500 $405500 $395500
You are given the following information for Smashville, Inc. Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Gross margin Operating margin Return on assets Return on equity $174,000 $ 1,400 $379,000 $ 86,000 $ 7,400 8,000 $ % % % % 40% $ 21,000 $ 21,000 $ 46,000 $ 38,000 $130,000 Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) $ 3,000 $ 34,000 $ 64,000
Wims, Inc., has sales of $19.9 million, total assets of $14.9 million and total debt of $5.7 million. The profit margin is 12 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) C. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) Net income a. b. ROA C. ROE % %
Answer the following questions. Hint. Use the accounting equation. a. At the beginning of the year, Addison Company's assets are $237,000 and its equity is $177,750. During the year, assets increase $80,000 and liabilities increase $56,000. What is the equity at year-end? b. Office Store Company has assets equal to $130,000 and liabilities equal to $98,000 at year-end. What is the equity for Office Store Company at year-end? c. At the beginning of the year, Quaker Company's liabilities equal $41,000. During the year, assets increase by $60,000, and at year- end assets equal $190,000. Liabilities decrease $11,000 during the year. What are the beginning and ending amounts of equity? COS Graw Hill Complete this question by entering your answers in the tabs below. Required A Required B Required C At the beginning of the year, Quaker Company's liabilities equal $41,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $11,000 during…
If a company uses $1,500 of its cash to purchase supplies, the effect on the accounting equation would be: Multiple Choice Assets decrease $1,500 and equity increases $1,500. Assets increase $1,500 and liabilities decrease $1,500. Assets increase $1,500 and liabilities increase $1,500. Assets decrease $1,500 and equity decreases $1,500. 5-5 One asset increases $1,500 and another asset decreases $1,500, causing no effect.
Ace Industries has current assets equal to $4 million. The company's current ratio is 2.0, and its quick ratio is 1.7. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current Liabilities $ Inventory $
Alpha Company has assets of $634,000, llabilities of $267,000, and equity of $367,000. It buys office equipment on credit for $92,000. What would be the effects of this transaction on the accounting equation? O Multiple Choice Assets increase by $92,000 and expenses decrease by $92,000. Liabilities increase by $92,000 and expenses decrease by $92,000. Assets increase by $92,000 and expenses increase by $92,000. Assets increase by $92,000 and liabilities increase by $92,000. Assets decrease by $92,000 and expenses decrease by $92,000.
Saddleback Company paid off $46,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Choice O O Assets decrease $46,000; equity decreases $46,000. Assets decrease $46,000; liabilities decrease $46,000. Assets decrease $46,000; liabilities increase $46,000. Liabilities decrease $46,000; equity increases $46,000. Assets increase $46,000; equity increases $46,000. 11
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 35 Inventories $ 50 Less accumulated depreciation 120 Receivables 35 Total current assets Total current liabilities Long-term debt $ 350 Interest expense $25 Property, plant, and equipment 520 Total liabilities Net fixed assets Shareholders' equity $90 Total assets Total liabilities and shareholders' equity INCOME STATEMENT Net sales $700 Cost of goods sold 580 Selling, general, and administrative expenses 38 EBIT Debt due for repayment $ 25 Cash 15 Taxable income Federal plus other taxes $ 15 Depreciation 12 Net income Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to…
ABC Corporation sells $150,000 of accounts receivable to a factor, who charges a 4% service fee. Which of the following will not result from this transaction? O a. ABC's operating expenses will Increase by $6,000. O b. ABC's cash balance will increase by $144,000. O c. ABC's net revenues will decrease by $6,000. O d. ABC's net accounts receivable will decrease by $150,000. « » A Moving to another question will save this response. 12:01 PM pe here to search 5/5/2021 DELL F1 F2 F3 F4 F5 F6 FZ F8 F9 F10 F11 F12 PrtScr Insert Delete 188 @ $ & ) 2 3 4 5 7 8 9. Backspa W E R Y U