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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)

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Vibrant Company had $970,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $535,00

Leni [432]

Answer:

Explanation:

From the give information; we are to:

1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.

The correct amount of the company's gross profit in each of the years 2016 - 2018 can be seen as computed in the table below.

VIbrant Company Income statement

2016 2017 2018

Sales 970,000 970,000 970,000

-

Cost of good

sold:

Beginning 270,000 270,000 270,000

Inventory

+

<u>Purchase 535,000 535,000 535,000 </u>

<u />

The cost of good

available for sale 805000 805000 805000

is:

-

<u>Ending Inventory 270,000 270,000 270,000 </u>

Cost of good sold 535,000 535,000 535,000

<u>Gross Profit 435 000 435000 435000 </u>

N:B ;

Gross Profit = Sales - Cost of good sold

Gross Profit = 970000- 535000

Gross Profit = 435000

2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

For 2016; the comparative income statement is computed as follows:

Debit Credit

Sales 970000

Less:(-)

Cost of good sold

Beginning Inventory 270000

Add Purchase <u> 535000</u>

Cost of goods available 805000

for sale

Less (-)

Ending Inventory <u> 250000</u>

Cost of good sold <u> 555000</u>

Gross profit <u> 415000</u>

For 2017; the comparative income statement is computed as follows:

Debit Credit

Sales 970000

Less:(-)

Cost of good sold

Beginning Inventory 250000

Add Purchase <u> 535000</u>

Cost of goods available 785000

for sale

Less (-)

Ending Inventory <u> 270000</u>

Cost of good sold <u> 515000</u>

Gross profit <u> 455000</u>

For 2018; the comparative income statement is computed as follows:

Debit Credit

Sales 970000

Less:(-)

Cost of good sold

Beginning Inventory 270000

Add Purchase <u> 535000</u>

Cost of goods available 805000

for sale

Less (-)

Ending Inventory <u> 270000</u>

Cost of good sold <u> 535000</u>

Gross profit <u> 435000</u>

8 0

3 years ago

Fixed costs included in this income statement are $2,000 for meal production and $400 for administrative costs. Maria has receiv

Olenka [21]

Answer:

While the special order generates a positive differential cost of $15

It should be rejected.

As this is an insignificant reward (15 / 1,000 = 1.5%)

considering the effort needed (300 / 2,000 = 15% production)

We increase production by 15% to increase our income by 1.5%

Any deviation from the expected cost will turn the project into a negative outcome the project is not useful for the current cost structure.

Explanation:

<u>MISSING INFORMATION</u>

TOTAL /// Per Unit

Sales revenue $10,000 $ 5.00

Costs of meals 8,000 4.00

Gross profit 2,000 1.00

Administrative costs 1,000 0.50

Operating profit 1,000 0.50

Fixed Cost

2,000 meal production

400 administrative cost

<em>Variable cost:</em>

unit sold: 10,000 / 5.00 = 2,000

Total Cost: 9,000

Less fixed of 2,400

Variable cost 6,600

6,600 / 2,000 units = 3.3 per unit

Special order:

Sales revenue 3.35 x 300 = 1,005

Cost per unit: 3.30 x 300 =<u> 990 </u>

revenue 15

7 0

3 years ago

Ag Class - Select the four jobs with projected growth over 10 percent.

Rashid [163]

Answer:

1,3,7

Explanation:

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3 years ago

The following information pertains to Peak Heights Company:

Delvig [45]

Answer:

Peak Heights Company

PEAK HEIGHTS COMPANY

Statement of Cash Flows

Operating Activities Section

Net income $15,625

Non-cash flow: Depreciation 6,700

Changes in working capital:

Accounts receivable -$4,400

Inventory 4,000

Salaries payable 750

Net cash from operating activities $22,675

Explanation:

A) Data and Calculations:

Peak Heights Company:

Income Statement for Current Year

Sales $85,900

Expenses Cost of goods sold $51,675

Depreciation expense 6,700

Salaries expense 11,900 70,275

Net income $15,625

Partial Balance Sheet Current year Prior year Changes

Accounts receivable $9,800 $14,200 -$4,400

Inventory 13,100 9,100 4,000

Salaries payable 1,620 870 750

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3 years ago

You want to endow a scholarship that will pay $10,000 per year forever, starting one year from now. The school’s endowment disco

BaLLatris [955]

Answer:

$142857.14

Explanation:

<u>Given:</u>

Present value (PV) = ?

Cash Flow (C) = $10,000

Discount Rate = 7% = 7 / 100 = 0.07

Calculation of Present Value.

Present Value = Amount of Cash Inflow / Discount rate

Present value = $10,000 / 0.07

Present Value = $142,827.143

So, Present value of Perpetuity is $142,827.14 must be donate to get scholarship .

6 0

3 years ago