On August 13, 2015, Swell Maps Enterprises Purchased Equipment for $1,300

question 36

Short Answer

On August 13, 2015, Swell Maps Enterprises purchased equipment for $1,300 and supplies of $200 on account. Which of the following journal entries is recorded correctly and in the standard format? a. Equipment $\quad$$\quad$ 1,300
$\quad$ Account Payable $\quad$$\quad$ 1,500
$\quad$ Supplies $\quad$$\quad$ 200

b. Equipment $\quad$$\quad$ 1,300
$\quad$ Supplies $\quad$$\quad$ 200
$\quad$ Accounts Payable $\quad$$\quad$ 1,500

c. Accounts Payable $\quad$$\quad$ 1,500
$\quad$ Equipment $\quad$$\quad$ 1,300
$\quad$ Supplies $\quad$$\quad$ 200

d. Equipment $\quad$$\quad$ 1,300
$\quad$ Supplies $\quad$$\quad$ 200
$\quad$ Accounts Payable $\quad$$\quad$ 1,500

Understand the payback and discounted payback methods and their limitations.

Recognize the concept of profitability index and its relation to NPV.

Apply the concept of average accounting return (AAR) and its significance in project evaluation.

Learn the impact of cash flows, discount rates, and other variables on the valuation of projects.

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