Author Question: Gross profit is a measure of the amount of sales dollars available to cover expenses after covering ... (Read 192 times)

ENagel · **on:** Jul 5, 2018

Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Show the effect on the accounting equation for each of the events below. Fill in the AMOUNT and the LETTER of the account title from the list of accounts provided.

A Additional paid-in capital D Dividends G Net income
B Cash E Dividends payable H Revenue
C Common stock F Interest expense I Treasury stock

Shareholders' equity
Assets Liabilities Contributed capital Retained earnings
Company issued 1,000 shares of 1 par value stock for 4 each
Company repurchased 20 shares for 5 each
Company declared a 10,000 dividend to be paid in two months
Company paid the 10,000 dividend from above

What will be an ideal response?

IRincones · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

Shareholders' equity
Assets Liabilities Contributed capital Retained earnings
4,000 B 1,000 C
3,000 A
(100 ) B (100 ) I
10,000 E (10,000 ) D
(10,000 ) B (10,000 ) E