Merchant Corporation provides plumbing services. Transactions of Merchant during the first year of operations are given below
a) Received $12,000 cash and issued common stock to Sharon
b) Paid $1,600 cash for equipment to be used for plumbing repairs.
c) Borrowed $14,000 from a local bank and deposited the money in the checking account.
d) Paid $600 rent for the year.
e) Purchased $200 of office supplies by cash.
f) Completed a plumbing repair project for a local lawyer and received $3,000 cash.
Calculate the amount of total liabilities at the end of the first year.
A) $14,000
B) $12,000
C) $24,400
D) $3,000
A .Borrowings from bank = $14,000
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From a business perspective, the poor working conditions endured by workers in the early part of U.S. industrialization were most problematic because:
A. Workers should have better lives than that. B. Workers were willing to put up with anything to keep a job, thus turnover rates were too low. C. Workers lacked purchasing power which kept product demand artificially low. D. The government threatened to impose minimum wage and working conditions laws.
Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.
Answer the following statement true (T) or false (F)
Paramount Event Planning Services collects fees from its customers in advance. On January 1, 2017, the balance of its Unearned Revenue account was $3,000 (CR). During January and February, the company collected $4,000 and $600 as advance fees
During the two-month period, it performed services of $5,500 related to the deferred revenue. What is the balance in Unearned Revenue at the end of February? A) debit balance of $3,000 B) credit balance of $3,000 C) debit balance of $2,100 D) credit balance of $2,100
A consolidation:
A) has precisely the same result as a merger. B) is the most typical form of business combination used today. C) is always illegal (in contrast to mergers, which are legal under state law). D) requires the assent of the board of directors and shareholders of each corporation.