On March 15, Maxwell Plush sold and shipped merchandise on account for $6,000 to Kittson Amusement Park, terms FOB shipping point, n/30. Maxwell’s cost of goods sold is40% of sales. How is Maxwell impacted by this sale on March 15?a. Its assets will increase, while its equity remains the same.b. Its assets will increase, as will its equity.c. Its assets will remain the same, while its equity increases.d. Its assets will remain the same, while its equity decreases.

Q: ​Elephant, Inc.'s cost of goods sold for the year is $ 2 comma 400 comma 000$2,400,000​, and the…

A: The correct answer is Option (B).

Q: X Co. had $2 million in credit sales during 2021. Historically, 2% of its sales are returned by…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Presented below is information for Ayayai Company for the month of March 2020. Cost of goods sold…

A: Gross profit is an excess value of revenue over the cost of goods sold. The gross profit rate can be…

Q: What is GP?

A: Detailed explanation: Gross profit is the difference between the revenue from both sales on cash and…

Q: Returned guy A cellular company purchased $26,600 in cell phones on April 25. The terms of sale were…

A: A cellular company purchased cell phones for $26,600 on April 25. The terms of sale are 4/20, 3/30…

Q: 1. Is the company's net income the amount stated by the owner? 2. Is the company a good investment?…

A: As seen in the above Income statement, Net Income is equal to $36,700 as stated by the Owner. Hence,…

Q: 4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000.…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as operating…

Q: DOLLAR BILL'S, a retail store in New York City, buys its inventory on credit.  Upon purchase, it is…

A: The financing cycle, also known as the cash conversion cycle, is calculated as the sum of the days…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is