Fred Pentell Company Completes the Following Transactions
A

question 67

Essay

Fred Pentell Company completes the following transactions
a. Mr. Pentell invests $5,500 cash in his company.
b. The company purchases equipment on account, $1600.
c. The company purchases additional equipment for cash, $600.
d. The company makes a payment on account for the equipment, $1,000.
Required: Record the above transactions in the basic accounting equation.
                                  Fred Pentell Company $$\begin{array}{l}\text {}\\\begin{array} { l l l l } &\text {ASSETS}&=\text {LIABILITIES}&+\text {PWNER`S EQUITY}\\\hline&\text {cash +equipment}&\text {accouint payable}&\text {F. Pentell, capital}\\\hline a.\\b.\\c.\\d.\\total\end{array}\end{array}$$

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Definitions:

Profit-Sharing Plan

A corporate program in which a company shares a portion of its profits with its employees, typically in the form of a bonus or retirement contribution.

Scanlon Plan

A gainsharing program designed to encourage productivity and cost-saving initiatives by sharing the resultant financial gains with employees.

Labour Input

The total hours worked by employees or the effort put in by employees towards the production of goods or services.

Gain-Sharing Plans

Performance-based compensation strategies designed to encourage teamwork and improve productivity by sharing the financial gains with employees.