Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following financial statement information is k

The following financial statement information is known about the two unrelated companies. Answer the following...

90.2K

Verified Solution

Question

Accounting

The following financial statement information is known about the two unrelated companies. Answer the following questions using your knowledge of the financial statement and particularly the Balance Sheet equation:

Company A Company B

December 31, 2016:

Assets 90,000 105,000

Liabilities 38,000 45,000

December 31,2017

Assets 96,000 82,000

Liabilities ? 55,000

During 2017:

Owner Investments 10,000 19,000

Profit (loss) (16,000) ?

Owner withdrawals 5,000 6,000

Required: What was the Equity on December 31,2017 for Company A? Do not use dollar ($) sign, commas or decimal places in your answer.


A.

Wages expense will be overstated and Net Income would be overstated

B.

Wages expense will be understated and Net Income would be overstated

C.

Owners equity would be understated

D.

The balance sheet will not balance due to net income being overstated


A.

Debit Insurance Expense $ 2,400; Credit Prepaid Insurance $2,400

B.

Debit Prepaid Insurance $800; Credit Insurance Expense $800

C.

Debit Insurance Expense $800; Credit Prepaid Insurance

D.

Debit Prepaid Insurance $2,400; Credit Cash $2,400

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Calculate enthalpy for the following reaction Ca(s) + 1/2O2 + CO2 = CaCo3 Given the following...

Chemistry
Q

list 3 reasons you would use hplc instead of gc for organic compounds

Chemistry
Q

In forensic science, it is useful to measure the speed at which firearms propel bullets. Before...

Physics
Q

Angiosperms 0 1 O 3 O 2 T 0 4 4 Gymnosperms U 3 Ferns...

Biology
Q

All changes a Two buildings building A and building B are 200 and 1000 feet...

Geometry
Q

A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool...

Accounting
Q

Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and...

Accounting
Q

On January 1,2020, Bobs Meat Market leased some equipment from another company. The lease contract...

Accounting
Q

Which of the following actions are most likely to directly increase cash as shiewn on...

Accounting
Q

The following data are from the budget of Ritewell Publishers. Half the company's sales are...

Finance
Q

b. a. Affordable Electronics Inc. manufactures medium-quality, reasonably priced wireless speakers for...

Accounting
Q

You are given a perpetuity, with annual payments as follows: (i) Payments of 8 at...

Finance