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Manal Elkhoshkhany
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8. B & F Auto Body purchased equipment costing $60,000. Of

Customer Question

8. B & F Auto Body purchased equipment costing $60,000. Of this amount, $40,000 was paid in cash and the balance is due in 6months. Recording this purchase would have what effect on firm's accounting system?
       assets would increase $60,000
       assets would increase $100,000
       accounts payable would increase $40,000
       assets would increase by $20,000


9. On 7/1/07, Smart Company purchased a 4yr fire insurance policy for $4,800. Regarding this event, what amounts should be reported on the 12/31/07 balance sheet and income statement, respectively?   
Balance Sheet     Income Statement
$1,200 prepaid asset     $3,600 insurance expense
Balance Sheet     Income Statement
$600                         $1200
Balance Sheet     Income Statement
$4,200                     $600
Balance Sheet     Income Statement
$4,800                   $0

10. Which of the following accounts is considered a contra account?
       accumulated depreciation
       accounts receivable
       notes payable
Submitted: 8 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 8 years ago.
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Customer: replied 8 years ago.
FYI -answers I was given was actually wrong. The correct answers are:

8.     Question:     
B & F Auto Body purchased equipment costing $60,000. Of this amount, $40,000 was paid in cash and the balance is due in six months. Recording this purchase would have what effect on the firm's accounting system?

     Your Answer:     
                  total assets would increase $60,000             INCORRECT
                  total assets would increase $100,000             
                  accounts payable would increase $40,000             
                  total assets would increase by $20,000             CORRECT ANSWER
     Points Received:      0 of 2
     Comments:     
9.     Question:     
On July 1, 2007, Smart Company purchased a four-year fire insurance policy for $4,800. Regarding this event, what amounts should be reported on the December 31, 2007 balance sheet and income statement, respectively?

     Your Answer:     
                  
Balance Sheet
Income Statement
$1,200 prepaid asset
$3,600 insurance expense
   
                  
Balance Sheet
Income Statement
$600 prepaid asset
$1,200 insurance expense
   
                  
Balance Sheet
Income Statement
$4,200 prepaid asset
$600 insurance expense
   CORRECT ANSWER
                  
Balance Sheet
Income Statement
$4,800 prepaid asset
$0 insurance expense
   INCORRECT
Expert:  Manal Elkhoshkhany replied 8 years ago.

Hello indy

 

I apologize for this, yes I see what I did it wrong, but since I ALWAYS provide correct solutions as you can see from my feedback, I am willing to refund the amount paid for this question.

 

Would that be a sufficient apology?

 

I really am sorry about that, I was working fast and I missed the tricks in those questions

Customer: replied 8 years ago.
I would appreciate that. Thanks for understanding.
Expert:  Manal Elkhoshkhany replied 8 years ago.

I am the one who should thank you for understanding, and I really apologize, I can't believe I made those mistakes

 

Best wishes