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enot [183]
3 years ago
7

Elston Company compiled the following information as of December 31, 2014:Service Revenue $700,000Common Stock $150,000Equipment

$200,000Operating Expenses $625,000Cash $175,000Dividends $50,000Supplies $25,000Accounts Payable $100,000Accounts Receivable $75,000Retained Earnings, Jan 1, 2014 $375,000Elston's stockholders' equity on December 31, 2014 is
Business
1 answer:
Elden [556K]3 years ago
6 0

Answer:

The Elston's stockholders' equity on December 31, 2014 is $550,000

Explanation:

For computing the stockholder equity, first, we have to find out the ending retained earning balance which equals to

= Beginning retained earning balance + Net income - dividend paid

= $375,000 + $75,000 - $50,000

= $400,000

where,

Net income = Service revenue - operating expenses

                   = $700,000 - $625,000

                   = $75,000

Now the stockholder equity equals to

= Common stock + ending balance of retained earning

= $150,000 + $400,000

= $550,000

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The correct option is (b)

Explanation:

Aggregate supply curve is upward sloping as output increase with the increase in price. In the short run, wage rate is fixed. As such, in the short run, firms can hire more workers at fixed wage rate. An increase in price indicates more profits, thereby increasing output.

This is the reason for upward sloping AS curve.

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When it comes to brochures and especially slides, Orange Photography would agree with the chapter that subtle details, such as _
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If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest r
Stella [2.4K]

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Explanation:

As for the provided information, we know,

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as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will <em><u>rise,</u></em>

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5 0
3 years ago
On January 1, 2021, Legion Company sold $250,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December
notsponge [240]

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$9,838.56

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5 0
2 years ago
Read 2 more answers
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KonstantinChe [14]

Answer:

Cost Flow Methods

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit     Ending Inventory

(a) first-in, first-out (FIFO)                     $75                   $546

(b) last-in, first-out (LIFO)                       $71                   $542

(c) weighted average cost method     $73                   $544

Explanation:

a) Data and Calculations:

Item Beta   Cost

April 2  Purchase   $270

April 15  Purchase   272

April 20  Purchase 274

Total                      $816

Average cost per unit = $272  ($816/ 3 units)

Assume that one unit is sold on April 27 for $345

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit            Ending Inventory

(a) first-in, first-out (FIFO)                 $75 ($345 - $270)  $546 ($816 - $270)

(b) last-in, first-out (LIFO)                   $71 ($345 - $274)   $542 ($816 - $274)

(c) weighted average cost method $73 ($345 - $272)  $544 ($816 - $272)

Ending inventory = Cost of goods available for sale Minus Cost of goods sold

Gross profit = Sales Minus Cost of goods sold

3 0
2 years ago
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