Ask question

Ask question

All categories

3 years ago

12

In preparing closing entries A. each revenue account will be credited. B. each expense account will be credited. C. the owner’s

capital account will be debited if there is net income for the period. D. the owner’s drawings account will be debited.

1 answer:

Whitepunk [10]3 years ago

8 0

Explanation:

The closing entries for the following accounts are shown below:

1. Sales Revenue A/c Dr XXXXX

To Income Summary XXXXX

(Being revenue account closed)

2. Income summary A/c Dr XXXXX

To Expenses A/c XXXXX

(Being expenses accounts are closed)

3. Income summary A/c Dr XXXXX

To Owner capital XXXXX

(Being the difference is recorded)

4. Owner capital XXXXX

To Owner Drawing XXXXX

(Being the drawing account is closed)

You might be interested in

You need some money today and the only friend you have that has any is a miser. He agrees to loan you the money you need, if you

Art [367]

Answer:

$8.6

Explanation:

Calculation for How much total interest is he charging

First step is to calculate the present value (PV) using financial calculator by using this formula

PV=PV(Rate,Nper,PMT,FV,Type)

Rate represent Interest Rate

Nper represent Period

PMT represent Payment

FV represent Future Value

Type = 1 which represent the annuity due reason been that the 1st payment is to be made today

Let plug in the formula

Rate = 2%

Nper = 6

PMT = $30

FV = 0

Type = 1

Hence,

PV = PV(2%,6,30,0,1)

PV= $171.40

Since we have known the PV the last step is to calculate the total interest

Using this formula

Total interest =( PMT*Nper)-PV

Let plug in the formula

Total interest = ($30*6) - $171.40

Total interest = $180 - $171.40

Total interest = $8.6

Therefore the amount of the total interest he will be charging is $8.6

8 0

4 years ago

Read 2 more answers

The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. Th

lesantik [10]

Answer:

d.$5,000

Explanation:

In order to find the maximum amount of possible expansion in the money supply we will have to find the money multiplier. The formula for the money multiplier is

1/reserve ration =1/0.2=5

Now that we know that the multiplier is 5 we will multiply is by 1000 which is the initial deposit, to get the total possible expansion in the money supply, 1000*5= 5000

8 0

3 years ago

If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money suppl

kifflom [539]

If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.

<h3>What is budget deficit?</h3>

When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.

Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.

The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.

To know more about budget deficits refer to: brainly.com/question/14181631

#SPJ4

4 0

2 years ago

Based on his psychosocial framework, Erikson believed that people who haven't reached _____ have serious regrets about their lif

FinnZ [79.3K]

Based on his psycho social framework, Erikson believed that people who haven't reached integrity have serious regrets about their life and are terrified of death.

Explanation:

The psycho-social context is a characteristic form of practice which emerged early in the development of the discipline. Their objectives are to restore sustain and improve people's personal and social functionality.

It developed considerably out of its Psychoanalytical and Ego conceptual foundations based on psychological and social concepts. New information on identity and gender has been implemented.

According to Erikson the full recognition and acknowledgement of the death is a sense of dignity. It is important to take responsibility for your own life and to be able to undo the mistakes and to please yourself. The inability to do so generates a hopeless feeling.

4 0

4 years ago

The company has net nonoperating obligations (NNO) of $10,000 and 5,000 shares outstanding. Calculate the per-share stock price

Arte-miy333 [17]

The per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Explanation:

Net non-operating obligations (NNO) = $10,000

Outstanding shares = 5,000 shares

Discount rate = 7%

Terminal Growth rate = 2%

Expected free cash flows for Target Corp. for 2019:

Current Forecast Horizon Terminal

2019 2020 2021 2022 2023 Year

Free cash flows (FCFF) $4,650 $4,880 $5,130 $5,390 $5,650 $5,766

Discount factor at 7% 0.935 0.873 0.816 0.763 0.713

PV of FCFF $4,563 $4,478 $4,398 $4,311 $4,111

a. Sum of PV of FCFF for 2020 to 2032 = $17,750 ($4,563 + $4,478 + $4,398 + $4,311)

b. The PV Terminal Year = $4,111

c. Total Firm Value = $21,861 ($17,750 + $4,111)

d. Total Equity Value = $11,861 ($21,861 - $10,000)

e. Per Share Stock Price = $2.37 ($11,861/5,000)

Thus, the per-share stock price for 2021 using the FCFF information for Target Corp. is $2.37.

Learn more: brainly.com/question/22681779

6 0

3 years ago