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3 years ago

The balance in the j. higgins, withdrawals account was. the entry to close the account would include a:

Business

1 answer:

PilotLPTM [1.2K]3 years ago

5 0

The correct answer to this question would be a credit entry.

A withdrawal account has a debit balance throughout the accounting period when the owner makes a withdrawal. At the end of the accounting cycle there needs to be a closing entry made that would zero out the withdrawal account. This entry will be a credit to the withdrawal account and a debit to the capital account. The amount will be the balance in the withdrawal account in order to bring the balance to zero.

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A company investing borrowed funds expects to earn a return greater than the interest it will pay for the use of funds is using

Naddika [18.5K]

Answer:

Financial leverage

Explanation:

Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).

When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.

Use of equity is the only option where no extra cost is incurred for use of funds.

When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.

This practice is called use of financial leverage.

3 0

3 years ago

Which of the following is not considered a credit?

Serga [27]

Answer:

which of the following is not considered a credit?

overdraft fee

Explanation:

5 0

3 years ago

On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to good

Firdavs [7]

Answer:

$10,730

Explanation:

1. Patent: $92,000/15 years = $6,133

$6,133 × 3/12 = $1,533

2.Goodwill: $552,000/15 years= $36,800

$36,800 × 3/12 = $9,200

Total: $1,533 + $9,200= $10,733

Approximately $10,730

3 0

3 years ago

Radison Enterprises sells a product for $102 per unit. The variable cost is $58 per unit, while fixed costs are $758,912. Determ

Ksenya-84 [330]

Answer:

Results are below.

Explanation:

Giving the following information:

Radison Enterprises sells a product for $102 per unit.

The variable cost is $58 per unit, while fixed costs are $758,912.

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 758,912 / (102 - 58)

Break-even point in units= 17,248 units

<u>Now, the selling price is $107:</u>

Break-even point in units= 758,912 / (107 - 58)

Break-even point in units= 15,488 units

8 0

3 years ago

Chang industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these

Fynjy0 [20]

If the company calls these bonds at a price of $201,000, the gain or loss on the retirement would be $2,000.

Here, $203,000 is the net carrying value of the liability - $201,000 is the price the bonds were called at and the price that Chang industries paid to retire the bonds and the associated liability.

Therefore, $203,000 - $201,000 = $2,000

The gain or loss on the retirement would be $2,000.

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. Thus, the issuer retires the bonds at the scheduled maturity date of the instruments.

Hence, bond retirement involves the cashing out of a bond that has been invested in.

To learn more about bond retirement here:

brainly.com/question/13960495

#SPJ4

4 0

1 year ago

The balance in the j.​ higgins, withdrawals account was. the entry to close the account would include​ a:

The balance in the j. higgins, withdrawals account was. the entry to close the account would include a: