Answer:
a. True
Explanation:
The capital account of a soul proprietor is similar to the equity account of a company. It shows how much the business owes the owner.
This includes the amount invested and net income over the years posted as part of the retained earnings.
Net income is the difference between the total revenue and total expenses.
Net income = $220,000 - $150,000
= $70,000
Net balance in capital account = $13,000 + $70,000
= $83,000
Answer:
3,220 units
Explanation:
The computation of the material quantity variance is shown below:
Direct material quantity variance = Standard Price × (Standard Quantity - Actual Quantity)
$750 = 2 gallons × $12.50 × (6,500 gallons ÷ 2 - actual quantity)
$750 = $25 × (6,500 gallons ÷ 2 - actual quantity)
$30 = 3,250 - actual quantity
So, the actual quantity would be
= 3,250 - $30
= 3,220 units
The Standard Price is computed below:
= 2 gallons × $12.50
The standard quantity is computed below:
= 6,500 gallons ÷ 2
= 3,250 units
When the level of output leads to sales revenue that covers the fixed and variable costs, this is called the Breakeven Point.
<h3>What happens at the Breakeven point?</h3>
This is the point where the company has sold enough units to make back its variable and fixed costs.
At this point, the company would be making $0 profits which is also considered in business to be the normal profit.
Find out more on normal profits at brainly.com/question/3522161.
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Answer:
7%
Explanation:
Interest income if Curtis invested
250,000 x 9% = 22,500
After tax interest income = 22,500 - (22,500 x 24%)
= 17,100
After tax rate of return = 17,100/250000
0.068
Approximately 7%
Answer:
c. In Paulson's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Service Revenue account will be too high and the ending balance for the Unearned Service Revenue account will be too low
Explanation:
Around 15th November, Paulson Painting endured a $6,000 cash amount from Apex Inc. in replacement for painting services to be rendered in the month of December. While posting the journal insertions correlated to this amount, Paulson's controller debits the Cash statement for $6,000 as well as charges Service Revenue toward $6,000. The statement which best describes the results of this posting is that, <u>in Paulson's general ledger, the ending balance for the Cash account will be accurate. Nevertheless, the ending balance regarding the Service Revenue account will remain extremely high as well as the ending balance for the Unearned Service Revenue account will remain extremely low.</u>
