stockholders-equity-consists-of-which-of-the-following-a-bonds-payable-b-retained-earnings-and-accou

Question

Stockholders’ equity consists of which of the following?
A. bonds payable
B. retained earnings and accounts receivable
C. retained earnings and paid-in capital
D. discounts and premiums on bond payable

Puneet Prajapati · Accepted Answer

So let&#x27;s start. The solution was to Paul. We will. It really defined 55 type of comes to our be accounting subject forward by that diamond rules of accounting that will be applicable on recording on off the financial transaction. People separate arms become okay. So first is a sex. What about a six? They&#x27;re nothing but the amount been comfortable from the customers. Often we have soared in Madrid to them. Okay, Yes. Bank balance. Then did he has? Okay. Like, let&#x27;s suppose we are. We are in the business off selling selling printers, our computers to our customers. So obviously, if if we make cash sales to them so they will be a cash and bank balance. We are maintaining our cover identity level. Okay, so the cash in bank will be considered in assets. Okay, Like twice. And memory inventory is like you have to suppose you have before you selling. Before you sell the printer to the customer, you purchase different parts of the printer from your suppliers. So become certain victory that it is a raw material, which is we just possessed by you&#x27;re jumping to make it a complete rendered. Okay, we just sold to the customers, then come to liabilities. Okay, what are celebrities Level cities are in court. Press two. It&#x27;s it&#x27;s that just opposed in V I in the business off selling print us and we have a chase, um, different parts offering there from our supply. But we have no big them. So that part that the moment will become able like we have to be that a vote in later point in tight. Okay, Also a demon. Suppose you take loan from the bank to purchase house and different times of properties. Arvydas any type of property that you want to purchase. So there are short and long term loans which will be classified enders which will be classified in there. Liabilities after that. The F estates after that. VF Capital capital Let&#x27;s suppose we are willing to start the business. But we are short off wonders of No. So we will go to our Lady of frames, different types up investors Who is the farts? Okay, so there are different medium to which we can raise difference. However, there are very, very dominant. We can say very, very popular matter of raising the points beach which are called the shares, but evidence Cheers. I would request all of you to write down what I&#x27;m writing now. Vital because it will become very, very easy to devise everything before the exam and the first time, so that it will be very, very clear. Clearer. Do you? Okay. No expense. Everyone will be bitter millipede expenses. So every expense for business purposes. Okay, for business purposes only. Let&#x27;s suppose that if the businessman is conceding the expense off marriage or butt off any type of party arrangement in its business to reduce the profit down, that will not be the case. So that filthy considered Isa Tex award is matter so that they could not be possible. The fifth type of a God we have like your expenses. This is similar, But in contrast to expenses like sales, are there any gum like that? Okay, so he has five type of boats. Okay, For these five type of homes, we have diamond rules of accounting. He&#x27;s noted now with this also because throughout the rounding, diamond rules of accounting are most popular. And these have bean, you know, just in rendered, I guess. I guess 5 to 6 years back before that. Heroes, they were only old Andrews. Okay. Ah, forget about that. People come down main solution. Because before they&#x27;re having deception, we also need to know that what is the basis off the solution? We have the right. Okay, so, Ingres, in estates expenses, I will always be never Okay. What is the meaning of this? They will understand it. The reason Assad&#x27;s expansions in question. It is simply that Let&#x27;s suppose we have increase. Novelist serves in dumbs off gash in terms off. And Henry, like the items we have noted down in the fourth Shit. Okay, so we will make a corresponding dab it off the amount in the books of accounts of the company. Okay, degrees in liabilities. Capital revenue equals two. Okay, so these are pickle diamond rules of accounting that will be applicable and five types of accounts. Whenever bill will be a financial transaction, we will use these diamond rules who regarded journal and green the books up on something followed by that. What is the requirement of the caution? The government of portion which type off this time which is the which pair out of these, given four years of here goes, will be increased or then be in greased with 13 entries. Okay, so we can identify from here. Only increasing lively&#x27;s capital and revenue account will be. You&#x27;ll be given up. That is foreign credit. Okay. Means it means that if there be, there will be any Ingres in Liberty&#x27;s. That&#x27;s supposed we have $500 off vibrated as off like the Emperor. Jeez. $500 or more dealing from our supplier. We have not painted $500 yet. No, we have also purchased some other material for Mother&#x27;s applied for $500. No, we have agreed celebrities off $500 so there will be a corresponding credit off next. $500 in the books. Avocados have become okay. No, out of the foreign beers. The correct choice is the whitey. Let&#x27;s And Mr there are $2 in the and a beer. Okay? There are two terms in the pier on every. Tell you that how they will become the items out off these three items Get qualified, become solution for our current problem. Okay, So what is the meaning of other in service to you? Okay. It is the service revenue you see, which which has been received in other words, like it is the amount which has been received in advance by the service providing entered e. However, there the service circuiting providing entity has not performed these surfaces for the entity from wound. The payment has been received. Okay? Received in a device but not performed. Please, like don&#x27;t well get clear interpretation. Okay, make it more re visible. A change. 100. No word on accounts people so deceived dinner once received in advance but has not performed services that disciples we are. We have received a loan for delivering food, food and beverages to someone who Some testimony interdistrict media. We have received a mound to our land bases like in case off two days at us off our land food delivery. So now the ever liability against that among to deliver the food to that customer. Okay, so that is the one armed service revenue. It will become earned service revenue after delivering the foods and service is do with that estimate. Sorry. A groundskeeper. These are the Ramones which have not been paid yet. Like we can classify it down like this purchased from supplies, but she&#x27;s from supply It, but not bid. Likely apologised in my angry from oversupplying. But we have not paid yet. So this will become our liability. Because we have not delivered the food and beverages to our customers. This will again become our celebrity. Okay, So what is the correct choice for proper for the given problem is be okay. That&#x27;s all for the solution. And I would again like to request to all of you the police right now Write it down. These five type of powers on associated Diamond rules of accounting to get a better clarity as the less better division at the time. Off exams. That&#x27;s all for your current solution. Thank you.

Puneet Prajapati · Answer

Okay, So let&#x27;s understand. What is the meaning off set has given another question right now. So first of what, we will go with the literal definition or we can sit traditional definition which has been given in the books and followed by that. We will give an example to understand more clearly what is the meaning off. So let&#x27;s even understand the current definition with a more elaborated example is it is very thought financial drawbridge because Vivian, because without financial transaction, they will not be any, you know, any type of financial obligations arising out any of the parties. So that is right. There needs to be a financial transaction to create it. Obligation festival. Okay, so first of all, let&#x27;s understand that the basic the basic off, basic definition off said it is an amount which an individual are a company or any type of legal person. So, you know, individual like a human being or any type of sole provider which is dealing in tow, any type of business. Okay, on a company like a legally incorporated company. As for the local regulations off, the idiot or any type of legal person know what does the legal person. Pete. A legal person could be any type off. Oh, a sub sub ordinated off the company like he can have partnership forms. We can have limited liability partnership forms. We can have any type of authority that that will be or that has been created. Patty government. Okay, so that type of legal person like municipality and many of them, please. So assistant authority, which expects to receive from now, expect to receive what I&#x27;m out. So so what In tow? State that. But you can assume like this expects to receive amount from any other person as a desert off financial transaction. Let&#x27;s understand this. It molded into in itself. Because with example, you get a better clarity. More elaborated. Meaning, Lottie Basic traditional definition. So Mr A has sold What? Just that he has. Don&#x27;t few batches off students in dominant off Generally. Thank you. Oh, fee. So, Donna, 15 100 don&#x27;t What? In total means total fees are 1500 for all the students. For all the matches off, all this one&#x27;s in duty. But as of now, hasn&#x27;t r B made otherwise? We stood a on treatment off such ease. No. What? No what we have just studied in our basic on begins it classic definition of a sick or be Esther deed that it is an amount which an individual are accompanying or any type of legal person expects to receive. Okay, you can remove it from here because actually, we have stated it here. More people in the first place so expects to deceive from any other person from any other person as a dessert, all financial transactions. So there are four things more clearly wants to follow this one on this whole world. Then any other person, it maybe anything, Any other person, okay. And 40 minutes desertified. Roderick. And the baby needs to be a financial transaction executed before creation of such obligations. So in the current case, Mr has start some off the swings in the month of January and have heard fees off $1500 for all of the stories in total. So we have to advise that what What type of treatment has to be done by Mr for treating such amount? No. As for the definition, it can be clearly seen that the $1500 will be treated as in a sect. Bye. Mr E. Because off financial transition. Now, what is the meaning of financial transaction? We do not need to get confused in the names suggest they&#x27;re fun. And Children, which manages that means just that it involves supplying a good just obviously, is any type of goods or services underdone for receiving cash for receiving money from another person who is receiving the goods off service is okay. But when we are exchanging off goods or services, this will not involve anything or this will not be included in financial transaction. Okay, my Mr Eight. Because off when Children are virgin? No. Between whom? The financial transaction is being executed. Mr A. Huh? Students, Because students are receiving goods and services and mystery is expecting to receive fees from the students. So that is why it isn&#x27;t a set for Mr So for the current problem. Current problem. 15. We have I got a choice. So we have in the current problem in the current problem. 15. The correct choice is the correct choice. Is the so I problem? 15 by variety. Because it has been there. Dennis, he&#x27;s all right. Their distance e Mr E is expecting will deceive the please. So therefore the correct choices be for the control 50. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution. So first of all, people understand veto. But in sheet ordered by back vividly drives former Okay, to understand the or good idea Main solution. OK, so it is the it refers to the stick mend off. Financial was issue. We&#x27;ll be here by an entity at the end off each year. Okay, so what we have, Okay, it is a statement of financial position. So it is the most in Bordentown in their definition. Okay, It is prepared by every entity like the introduced average for profit motive or and do the established for non profit motive, like for charity purposes. So the those types of entity also prepare financially balance sheet. Okay. And that I&#x27;m not easier now. What is watches? Meaning the end of each of means. Like first. Generally who? 2020 Who? 31st December 2020. Okay, No. Now we have industrial that. What is the balance sheet? No legs. Doors for mitt. Okay, get that clear. Idea that Lord, the question is asking about us. Okay, So, balance sheet. But the actual vomit is that 31st December. That would okay, so legs don&#x27;t right cross Let&#x27;s, like 2020 or we can see 2019 because we have not been like that. I dont drink tea yet, so I&#x27;m currently drawing the traditional form it off balance sheet. Please do not be confused with that. Okay, but make sure that you remember that items. Okay? Okay. You make sure you remember the item as well s the summation part. And what? However, the submission parties in order living dead. The summation part is nothing. And show you first. Make sure that you do. You remember the terms a sex owner&#x27;s equity and liabilities. Okay, The summation part is just that this torture will always be equal. Do this total. Otherwise the balance sheet per patient is not correct. Okay, this is all the summation part talks about. And as far as dictums organs concern the s exile, mostly the cash balance. Headed into the level are the machinery which is used in producing the products. Okay, so these will be considered as a sex owners. Equity means that how much capital the owner has invested in the company to run the business or who started business. The liabilities are the amount which we have, which the entity has to pay to some craters or depositors or from whom the advance has been taken. OK, so that those amounts will be considered as liabilities. So we have. You can have a bill into definition water by that B. M. Gorondi. We employ the former balance sheet. Now we&#x27;ve been Now we have been ivy. Correct choice for a problem. Okay, So what is ever correct choice? It&#x27;s a okay vision, Klores, Or like them stated in the second Chief. Except Okay, so that&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution to win something. But first of all, before the example, we draw the first of all, understand the actually question behind this solution and works it. What is it? Let&#x27;s see. Sits minus liabilities. Equal. Get it? Actually, capital is used in traditional needs as a loan in relation, sophisticated. But just to quit, you stop already. Our date is Oh, precise differences. They have presides differences between stockholder&#x27;s equity and capital. However, we will understand. Listen later when we will face the problems. Okay, so we have our question said minus liability was to stop really pretty no electricity. Understand this equation, Tau Example. Because the visit will be a little complex at getting states to understand this. No, let&#x27;s see. Mr Green has business off blue business off and currently it has. It&#x27;s it&#x27;s oh, dollars I did and liabilities off. Daughter 200 through there licked Lewis. So what do we have? We have Mr Ri, which is dealing in business off clothing, like chasing the flutes from locally from Lydia are outside of the country importing, you know, a good material. Some outside of the country, local boundaries and selling the setting, the builds and about my beating. In such business, Mr Lee has a community sets off about 500. These events will be in terms off gash. Know what is in a second? That&#x27;s it is in a mountain which a person or an entity is likely to the sea. Our is expecting to receive in some later point in time. So a sex could be gash, which is which is guaranteed with the current, which the entity it&#x27;s currently holding in its bank guard in, you know, cash reserves or doctors. It is that the person who would like you to pay the person for whom subject is that considered as sex. So presently, Now, what are the liabilities? Lab, please. Uh, those are mom&#x27;s, which we have to be. Who? Other person. Like participles. We have predators or shock them. Decked Logan Back short, Longtime necked. These are other financial obligations which B which we have to pay off during the lifetime of the business. I love What? The accounting. A question in place. Let&#x27;s understand this. Also, a sick Linus like beauties equally do stock no water. What is the amount of dissecting never take something. What is the example of liabilities? 100. Now, what is this? Top of very pretty hours. So we have understood the meaning. Love This one, This one? No, we really understand the meaning of this. And after that, we will come to the conclusion that how many type off combinations we can produce with this question, So that will be able to go on. Push. So what is this top of that? It would be It is. It is the amount there, the business man whores in the business as is, huh? Only money was realization depends upon liquidation. Liquidation? Oh, business having bean there done such definition. It is simply the amount that deck mystery that Mr Three Wars in the business as his own darts a simple list. Thank you, Mr V. As a community of equity, wealth equally means on his own. Mr. Ray has a commuter belt off dollars. 300 in his business. After being off the liabilities from the A community, a sense and what it would be the insects. But maybe gash dictators, order receivers or what type of bank deposits he had so out after the bingo after thing off celebrities. Dollars. 200 from the assets. Whatever be the long left? After such activation off of the exits, whatever will be left will be actually beautiful to Mr as a business. And this will be start hold equity. So no. So the correct solution. So the correct choice. So the correct choice off off problem 13 is deep. Howdy. Because, Indy, this is I send less liabilities equal to stock up. It took it. So this is about the Actually, this is the actual question is that&#x27;s it minus liabilities? Because just talk it is. And from this a question. We cannot be right this equation in anything so that this white this option is not today and that this does not represent the actual impression. So the current choice a problem dirtiness. And thanks for the

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the solution. Cluster for Louisville. Begin with the five type of accounts that that will be applicable throughout the country. OK, first is sex. Okay? The outside you covered up in the mountains. Let&#x27;s suppose you have a business and you have sold some water service is who? Your customers but the customers saying right now that he will be paying optimists are depleted of time that just around 30 days, so that tomorrow become automatically recovery. But okay, after that officer computer to think so that tomorrow will be being ordered in sex. Okay, gash in bank balance, if you will receive that amount from your customer so that so you will be mandating that cash balance at your entity in your cash drawer or any night off locker. Okay, So that will also become a sense in Henry. However, in traditional dance, we usedto dumb or we usedto no supplies, as in Bentley and then in inventory is nothing but the material you have purchased from you supplier for further processing off for further processing into finished goods so that you can so sold. You can sell those finished words too. Justin. Okay, let&#x27;s go to liabilities. Lively desired. Mostly in contrast, off six he belonged. So just we have This doesn&#x27;t bring three, like supposed You are purchased some inventory from your supplier, but you have not cared for them so that tomorrow becomes people. Okay, if that amount becomes people, so fact is considered as your liability, you have to pay off that liability after a certain period of time. Okay. Short and long term that that you like, or you take a loan from the bank to finance your different type of needs off the ones based on. You know, let&#x27;s example off chasing house, which isn&#x27;t properly purchasing car, motorbike or any night off needs you on. Okay, Shark and long term loans then come to capital. But on Capitol cookies, your capital, we will discuss in more detail when we will face much advanced problem later. Tow this. Do you see you contract your downfall form of BSC provincial capital in your lord books so that it would be easy or you devised these toes just before the accepts. Okay, so the capital is a dull which we use duty, Bardi Transactions allergic to financing for the business. Okay, no data expenses, okay? And I think everyone, everyone will be familiar with the expenses. So OK, the expenses which are incurred to one the profit on which which are incurred who relieved business but no personal nature are no personal expenses are allowed, Like you cannot say that you are going to consider personal expenses in your profit and loss and profit and loss statement off the business. Okay, so that should not be the case. No revenue if you are into If you&#x27;re in the business of selling or just ugly sister someone else to your customer. Okay. In most of the cases, so you&#x27;re Belgian. Date your revenue through selling the goods and services to your customer either through care Sailor Day Brazil like receiving the amount after later point in time. So that will become your sets. You can also have other angle. Okay, so these are the five type of accounts against which sorry against which I have stated the terms very, very relevant to them as off now for, you know, driving the solution for the current problem. However, I would also like to see what I would order so like to introduce some different companies. Five day difficulties. First of all, no. Let&#x27;s talk about the balances that how the how the different type of accounts have balances in most of the cases. Okay, so a certain expenses generally very, very generally means in most of the guests. In 99% of the cases, 99% of the cases will be will be having never evidences you will get to know a lot for this to me. What is the actual meaning off their Rebalances? While we will be moving to advance problems because of the unless another ways, it will not be much clearer to you, but as a matter off you the basis for the current solution, you can remember this. This is very, very simple. Nothing. Nothing toe, You know, very large it revenue capital, liabilities. Well, generally have credit balances, is that thank you. So what does that mean? Portions is which of the falling accounts will ever never dependence. Okay, So as we have just understood that the supplies order invent tree will be considered as an insect. Hey. Okay, so So we have we also know what is the meaning of in victory? No confirm Asper These rules, the asset will have generally or debit balance. So no, we can begin. Dr Other solution based on the analysis are based on the material we have. Just George it down. Okay, The correct choice for problem 33 is see? Okay, so that&#x27;s all for the solution. Please make sure that you will, Right? You will ride on your job. Your job down in your notebook for sheet as well as this as well as the second sheet. Third ship is not It&#x27;s not needed. Believe I don&#x27;t. Okay, I&#x27;m asking you to write down the first interrogation because that in most of the cases, whenever you will have exam so before 5 to 10 10 days back before that you need to them. You need to devise all this. That&#x27;s all for the solution. Thank you.

Problem

Retained earnings is accurately described by all …

Problem 15 Easy Difficulty

Stockholders’ equity consists of which of the following?
A. bonds payable
B. retained earnings and accounts receivable
C. retained earnings and paid-in capital
D. discounts and premiums on bond payable

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting