The adjusted trial balance of Blossom Company at December 31, 2019, includes the following accounts: Common Stock $17,200, Divid
ends $7,000, Service Revenue $38,900, Salaries and Wages Expense $16,200, Insurance Expense $2,400, Rent Expense $4,600, Supplies Expense $1,000, and Depreciation Expense $1,200. The balance in Common Stock is the balance as of January 1. Prepare a retained earnings statement for the year assuming net income is $13,500 for the year and Retained Earnings is $7,900 on January 1.
1 answer:
Answer:
Explanation:
Before preparing the retained earning statement, first we have to compute the closing balance of retained earning which is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $7,900 + $13,500 - $7,000
= $14,400
The statement of retained earnings is presented in the spreadsheet. Kindly find the attachment below:
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Answer:
The correct option is Dana might be indifferent between C, A, and B.
Explanation:
Note: See the attached photo for the indifference curve showing points A, B and C.
The answer can be explained using an indifference curve.
An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.
In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.
Therefore, the correct option is Dana might be indifferent between C, A, and B.
