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Alex_Xolod [135]
3 years ago
14

Blair Scott started a sole proprietorship by depositing $75,000 cash in a business checking account. During the accounting perio

d, the business borrowed $30,000 from a bank, earned $18,000 of net income, and Scott withdrew $12,000 cash from the business. Based on this information, what is the balance in Scott’s capital account at the end of the accounting period?
Business
2 answers:
o-na [289]3 years ago
6 0

Answer:

$81,000

Explanation:

The money with which Blair Scott started a sole proprietorship by depositing $75,000 is the CAPITAL

While the money the business borrowed is DEBT

The income earned $18,000 will increase Scott's capital (owner's equity) while the amount he withdrew from the business is called DRAWINGS and will reduce his capital

Based on this information, the balance in Scott’s capital account at the end of the accounting period will be his contribution of $75,000 + Net income of $18,000 - Drawings of $12,000 = $81,000

Doss [256]3 years ago
3 0

Answer: $81000

Explanation:

The capital account, in international macroeconomics, is a component of the balance of payments which records all transactions made between entities/parties in one country with entities in the rest of the world. These transactions consist of imports and exports of various goods, services, capital, and as transfer payments such as foreign aid and remittances. The balance of payments is composed of a capital account and a current account. Although, a narrower definition breaks down the capital account into a financial account and a capital account.

The capital account in accounting shows the net worth of a business at a certain point in time. It is also known as owner's equity for a sole proprietorship or shareholders' equity for a corporation, and it is reported in the bottom section of the balance sheet.

The capital account balance would be equal to the sum of cash deposit and net income minus drawings made.

Capital account balance= Cash deposit + Net income - Drawings made.

Capital balance= 75000+18000-12000

=93000-12000

=$81000

Therefore,the capital account is $81000.

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Answer:

The correct answer is C: underapplied by $2,500

Explanation:

Giving the following information:

Martinez Manufacturing applies overhead based on direct labor hours.

The company estimates that their overhead for the year will be $180,000 and that they will use 72,000 direct labor hours.

During the year, Martinez Manufacturing used 75,000 direct labor hours and actual overhead costs were $190,000

We need to calculate if the overhead was under or over applied and in what amount.

Predetermined overhead rate= total estimated manufacturing overhead for the period/ total amount of allocation base

Predetermined overhead rate= 180000/72000= $2.5 an hour

Now, we can calculate the amount of overhead allocated:

Overhead allocated= 75000 hours*2.5= $187,500

Over/under applied= actual overhead - allocated overhead= 190,000 - 185,500= $2,500 underapplied

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3 years ago
As a response to a rapidly changing marketplace, idea electronics found it necessary to reorganize, including a significant down
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Which business is exempt from using the accrual basis for accounting? A clothing manufacturer that has average gross annual rece
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Answer:

A home improvement store that just began business last year and had $2.7 million in gross receipts.

Explanation:

The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:

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A market structure in which sellers have no influence over price is known as an oligopoly monopolistic competition perfect compe
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2 years ago
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Suppose a competitive firm has​ cost, C​ = ​(0.002q3​) ​+ (22q)​ + 750, marginal​ cost, MC​ = 0.006q2​ + 22, and​ revenue, R​ =
aniked [119]

Answer:

 Options B and C are correct.

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  • Profit is positive.

Explanation:

At q = 150

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R > C so first is incorrect.

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MR is Negative

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