Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On September 1, 2015, Richard started a small business called Ricky Rock Wrestling for Fun. Ricky Rock offers a party package designed for active kids,

image text in transcribed
On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks. The following transaction occurred during the first month of operations, please indicate what's the effect on the accounting equation: September Description Amount 4 Collected the brochures and presentation cards to be used in promoting the $300 business. The invoice will be paid on October 5th. Increase and decrease assets Increase assets and increase liabilities Increase assets and increase Owner's equity Decrease assets and decrease liabilities None of the others alternatives are correct Different balance sheet items employ different valuation methods. Which valuation application is not generally accepted? A major line of inventory has increased in value substantially above its cost and has been restated to its current replacement cost Machinery is stated at its historical cost less the estimated amount of benefits consumed to date Cash is received for goods to be delivered next month, the liability is stated at the amount of cash received and not the cost of foods to be delivered Common share capital is stated at the amount at which it was originally sold None of the others alternatives are correct Coleman Inc. reports total assets and total liabilities of $225,000 and $100/000, respectively, at the conclusion of its first year of business. The company earned $75,000 during the first year and distributed $30,000 in dividends. What was the Iirm's contributed capital? $125,000 $95,000 $80,000 $50,000 None of the others alternatives are correct The Bonanza Co. Ltd. is interested in disposing of one of its subsidiaries and needs to decide on the minimum price it might be able to charge. Which valuation method would likely be used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Fraud Prevention And Detection

Authors: Zabihollah Rezaee, Richard Riley

2nd Edition

0470543205, 9780470543207

More Books

Students also viewed these Accounting questions