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3 years ago

15

After these closing entries what will be the balance in the retained earnings account? Total Revenues $ 125,000 Total Expenses 6

0,000 Retained Earnings (beginning) 130,000 Dividends 15,000

1 answer:

WINSTONCH [101]3 years ago

5 0

Answer:

$10,000

Explanation:

Given the data above,

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The first benefit of trade given in Chapter 2 is that "trade makes people better off when preferences differ." How does the stor

Bess [88]

Answer: Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.

Explanation:

Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.

In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.

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3 years ago

Consider two firms producing smartphones. one uses a highly automated robotics process, while the other uses human workers on an

anastassius [24]

A. Which Firm will have Higher Profits in a Recession Period ?
During a recession period trade and industries are unsuccessful and there is allot of unemployment. During the period supply in the market and level of output in the company are likely to be low. Robotic automated process seems to be relatively cheap under high production output in a firm. Also the cost of maintenance of machinery is quite high which the firm can`t cater for during the period. In this period human workers are more recommended as the cost of production will be accounted for due to small numbers of employees where the cost of wages and salaries is quite low.
B. Which Firm will have a Higher Profit During a Boom?
During a boom the industry experiences a period of economic success as demand in the market is high. Automated robotics process are machines and carry out their work with allot of efficiency. Compared to human beings they are relatively faster and more efficient. This will will help the industry meet its high level of production target. They also reduce the cost of production as their maintenance cost is low under large scale production. Human workers seem expensive during this period because cost of wages and salaries is subject per-head.
The Firm with a Higher Beta.
The automated robotics firm will have a higher beta this is because the output will be high leading to increased supply and sale for better profitability. The robots will also function as an asset to the firm increasing the net worth to the company.

7 0

3 years ago

Grocery Corporation received $330,654 for 9.50 percent bonds issued on January 1, 2018, at a market interest rate of 6.50 percen

andre [41]

Answer:

Explanation:

Issue price of bond = $330,654

Face Value = $272000

Premium on issue of bond = $330,654 - $272000 = 58654

Journal entry for bond issuance:

Cash Dr $330,654

Bonds Payable $272000

Premium on Bonds payable $58654

(Being bond issued at a premium of $58654)

As per effective interest method, interest expense = market rate * book value of bond

= 6.5% * $330,654 = $21492.5

Cash interest = $272000 * 9.5% = $25840

Premium to be amortized on interest date = $25840 - $21492.5 = $4347.5 or $4348

Journal entry for interest payment on December 31:

Account Financial Issuance Interest paid

Statement

Bonds payable Balance Sheet 272000

Discount on Bonds payable NA NA NA

Interest expense Income Statement 0 21492.5

Premium on Bonds Payable Balance Sheet 58654 -3813

Note: Interest expense for the year:

Interest to be paid ($272000 * 9.5%) 25840

Less: Amortization of Premium (58654/6.5) 3813

Interest expense 21492.5

Journal entry:

Interest expense Dr. 21492.5

Premium on Bonds payable Dr. 3813

Cash Account 25306

Note: here, it has been premium has been written on Straight line basis.

3 0

3 years ago

Which of the following users of accounting information are interested in the quality of a company assets?

kaheart [24]

Answer:

D

Explanation:

Well public is all about quality

7 0

2 years ago

In setting a product's , a business needs to take into account the costs of producing, distributing, and promoting the product a

Illusion [34]

When setting the price of a product, a company needs to take into account the costs of producing, distributing and promoting the product, as well as a profit margin.

<h3>How to set the product price correctly?</h3>

It is essential that the company align its needs and objectives with the characteristics of the market and its business, in order to define a compatible and competitive price. It is essential to analyze income and expenses to establish an optimal balance in the pricing process, revising the strategy whenever necessary.

Therefore, it is essential that pricing is aligned to the market, to the fixed and variable costs of the business, considering its needs and goals for the business to be well positioned in the market.

Find out more about pricing here:

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4 0

2 years ago