A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities makes a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will a. increase and decrease, respectively b. both increase c. both decrease d. remain the same and decrease, respectively

Q: The following is information for three local auto dealers:   Bell’s Domestics Junior’s Used Europe’...

A: Preparation of income statement and other requirement with all necessary calculation are as follows

Q: Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable ...

A: Accounts receivable: It implies to the amount that has been owed by the customers to the business. I...

Q: How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) , ...

A: The inventory turnover ratio expresses the relationship between the average cost of goods sold durin...

Q: Problem 2-4 Assume that you are the owner of Aurora Café, a specialty coffee shop in Baler. At the e...

A: Profit is the amount of income earned by business after deducting expenses to run the operations of ...

Q: Which one of the following statements is true?   If the activity method is in use, residual value sh...

A: Lets understand the basics. In activity based costing, depreciation is calculated based on the activ...

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. A...

A: Inventory valuation method includes: First In, First Out (FIFO) Method Last In, First Out (LIFO) Me...

Q: Why is there a dual side to every transaction? Explain.

A: The answer for the theory question on dual side of every transaction is discussed hereunder : Accord...

Q: You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable ...

A: Current Liabilities are those liabilities which are due and payable within one year. Out of the item...

Q: On Jan. 1, 2021, Gel Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par ...

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder. ...

Q: Jones Company had net income of $10,000 for the Beginning total assets were $150,000 and ending asse...

A: The ratio analysis helps to analyse the financial statements of the business. 

Q: accounting purposes, but uses sum-of-the-years' digit method Daniel Company purchased an equipment c...

A:

Q: During 2011, Vien Co. introduced a new line of machines that carry a three-year warranty against man...

A: Warranty liability = Total expense recognized - Actual warranty expenditure The question requires ca...

Q: How can sales clerks employed at Ramona's Clothing use the store's return policy to steal money from...

A: as the both question are different as per the guidelines we can provide answer for 1 question ( firs...

Q: Maddie Inc. has the following transactions for its first month of business. Transactions May 1 Cre...

A: Solution:- 1)Calculation of the individual account balances, and the total balance, in the accounts ...

Q: please help me answeer the following given  Debt analysis Springfield Bank is evaluating Creek Ente...

A: Ratio Analysis: Ratio analysis is the analysis where data in a company's financial statements  is co...

Q: Princess Company uses a periodic inventory system. The company's records for the month of February w...

A: FIFO (First in First Out) : Under this units sold is considered to be from the purchases made first....

Q: A company roll out its capital budget for the coming year at P20,000,000. The optimal capital struct...

A: Interest = Debt x Interest Rate A Stock Split is a corporate action which increase the no. of shares...

Q: Peter acquired 80% of the outstanding ordinary shares of Simon on January 2, 20x1. During 20x1, Pet...

A: Workings: 1) Computation of unrealized profit on downstream  transactions: Beginning Unrealized prof...

Q: Rooney Company incurred $280,000 of research and development cost in its laboratory to develop a pat...

A: A patent is the granting of a proprietary interest to an inventor by a sovereign authority. In retur...

Q: The assets and liabilities of Smith Company are as follows: Cash $28,650, Supplies, $840; Equipment,...

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. 

Q: Problem 2-6 Preparing the Statement of Comprehensive Income - Single-Step (Nature of Expense Method)...

A: Net income can be calculated by using the following formula or we can compute net income through com...

Q: Jones Company had net income of $10,000 for the year. Beginning total assets were $150,000 and endin...

A: Formula: Return on Assets = Net income / Average Total Assets

Q: Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on ...

A:   “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for...

Q: ulation of earnings available for common stockholders divided by common stock equity?

A: Shareholder Equity is the sum of Share capital and Shareholder funds ( Reserves and Surplus) . So it...

Q: suming a 360-day year, when a $12,600, 90-day, 11% interest-bearing note payable matures, total paym...

A: Maturity Value of Note Payable = Face Value + Interest Maturity value = Face Value + (Face Value x R...

Q: Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages s...

A: Employers Payroll Tax Expense: Employer-paid payroll taxes include federal income tax as well as Med...

Q: Exerclse 8-14 Ordinary repalrs, extraordlnary repalrs, and betterments LO C3 Oki Company pays $250,5...

A: As per IAS 16, Property plant and equipment An expenditure incurred to increase the productivity of ...

Q: The equipment is computer, I want to know 10 years Depreciable Life is reasonable or not under GAAP,...

A: Firstly, what is depreciation. Depreciation is a method of spreading over the cost of the asset over...

Q: Lexy Company issued P 10,000,000 of 10-year, 9% bonds on March 1, 2020 at 97 plus accrued interest. ...

A: Given that,  Lexy Company issued P 1,00,00,000 face value of bonds @ 97 each Plus accrued interest. ...

Q: Retail $ 56,000 $ 80,000 223,040 330,000 6,000 8,000 307,000 1.02 Cost Beginning inventory Net purch...

A: Dollar Value in LIFO Method To calculate the Dollar value in LIFO Method which can be taken first th...

Q: Help me answer problem 1 and 2 thank

A: An account receivable is defined as it is money that has not been paid by customers after using the ...

Q: Answer the following: Question One: State the accounting equation and define its components with exa...

A: Accounting refers to the process of recording, processing and eventual communication of financial in...

Q: Classify the following items that may cause discrepancy between accounting profit and taxable income...

A: Taxable income is that the portion of your gross income wont to calculate what proportion tax you ow...

Q: Depletion: Calculating and Journalizing Mineral Works Co. acquired a salt mine at a cost of $1,700,0...

A: Depletion refers to the depreciation of natural resources/wasting assets. Example: Coal, oil, metals...

Q: A company just began business and made the following four inventory purchases in June: $ 990 1,344 1...

A: Under average cost method using periodic inventory system, value of ending inventory and cost of goo...

Q: QUE Ltd had the following activity during 2020: Proceeds from sale of long-term $156,000 investments...

A: Answer) Calculation of Cash flow from Financing Activities    Amount Cash Flow From Finan...

Q: HELLO reported the following items on its December 31, 2020 trial balance: Accounts Payable, P1,089,...

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle, whiche...

Q: Problem 2-7 Classification of Accounts - General/Administrative expenses or Selling Expenses or Not ...

A: Classification of above expenses are as follows.

Q: Zoey Bella Company has a payroll of $7,820 for a five-day workweek. Its employees are paid each Frid...

A: Salaries expense for 5 days = $7,820 Hence, Salaries expense for 4 days period = $7,820 x 4/5 = $6,2...

Q: Adjustment for Accrued Revenues At the end of the current year, $17,810 of fees have been earned but...

A: In adjusting entry for accrued revenue we should debit account receivable and credit accrued fees ac...

Q: Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Em...

A: In partnership, the net income should be distributed to partners in the profit sharing ratio. In the...

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest ...

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order...

Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...

A: While preparing the consolidated balance sheet, the total assets of the acquired and acquirer compan...

Q: Instructions O Journal Creative Images Co. offers its services to individuals desining to improve th...

A: 1. Closing Entries - Closing Entries are made at the end of the year to close temporary accounts. Te...

Q: On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash...

A: Non controlling interest is the value of shares owned by minority shareholders. Total Shares = 5,760...

Q: Directions: Complete the table below. The first item has been done 101 Decreased Normal Increased by...

A: The financial statements of the business include the balance sheet and income statement. The balance...

Q: oblem List Next Problem s of a new bug repellent is tested on 13 subjec tes, the average percentage ...

A: A Null Hypothesis refers to a concept that evaluates that there is no difference between a certain s...

Q: On January 1, Power House Co. prepaid the annual rent of $22,600. Journalize this transaction. If an...

A: Prepaid annual rent = $22600  

Q: Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COS...

A: The practise of reviewing your project's financial results is known as cost variance. The cost varia...

Q: A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution ma...

A: Solution..   Return on sales = 20%  Net income = $50,000 Selling price = $10  Contribution margin = ...