Kingston Supplies Bought $20 000 Worth of Goods from Princetown

question 21

Multiple Choice

Kingston Supplies bought $20 000 worth of goods from Princetown Pty Ltd on credit. Before payment was made Princetown, in turn, purchased $8000 worth of supplies on credit from Kingston Supplies. The general journal entry to be recorded in the books of Kingston Supplies to offset the amount owing to it against the amount it owes is:

• A) Accounts receivable, Princetown Pty Ltd $8 000 Accounts payable, Princetown Pty Ltd $8 000
• B) Accounts receivable, Princetown Pty Ltd 12 000 Accounts payable, Princetown Pty Ltd 12 000
• C) Accounts payable, Princetown Pty Ltd 12 000 Accounts receivable, Princetown Pty Ltd 12 000
• D) Accounts payable, Princetown Pty Ltd 8 000 Accounts receivable, Princetown Pty Ltd 8 000

Gain the ability to explain major sections of Stockholders' Equity in a balance sheet.

Understand how stock dividends and stock splits affect the market price of a corporation's stock.

Calculate and interpret Earnings Per Share (EPS).

Assess the ethical considerations in corporate financial decisions.

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Definitions:

Non-compliance

Failure or refusal to act in accordance with laws, regulations, or prescribed norms and standards.

Reciprocity

A social norm where actions or services are returned or repaid, emphasizing mutual exchange and cooperation.

Reciprocal Alliances

Collaborative agreements between businesses or entities where each party offers mutual benefits and support, fostering shared success.

Effective Networkers

Individuals who are proficient in establishing and maintaining professional connections that are beneficial for career and business development.