Answer:
Wayman Corporation
Multiple-step income statement
Sales $425,000
Less: Cost of goods sold <u>$135,000</u>
Gross Profit $290,000
Operating Expenses
Salary Expenses $45,000
Utility Expenses $55,000
Advertising Expenses <u>$35,000</u>
Total Operating Expenses <u>($135,000)</u>
Net Operating Income $155,000
Other Income and Expenses
Interest expense <u>$25,000</u>
Net Income before Tax $130,000
Income tax expense <u>$55,000
</u>
Net Income <u>$75,000</u>
Answer:
A
Explanation:
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Answer:
Date Particulars Debit Credit
Jan 3 Cash $240,000
Common stock (30000*5) $150,000
Paid-in-capital in excess $90,000
Nov 2 Treasury stock $15,000
Cash $15,000
Dec 6 Cash $7,200
Treasury stock[75000/1500*600) $6,000
Paid in capital from treasuty cash $1,200
Answer:
True
Explanation:
The journal entries are the recording of the transactions in which the one account is debited and another account is credited along with the description and the date.
If we take the example.
Rent is paid for cash for $10,000
So, the journal entry would be
Rent expense A/c Dr $10,000
To Cash A/c $10,000
(Being rent is paid for cash is recorded)
So, the given statement is true
Answer:
eliminated due to firms entering the industry
Explanation:
In the long run , monpolistically competitive firms earn zero economic profit due to entry of firms into the industry.
A monpolistically competitive firm has low barriers to entry and exit of firms. In the short run when monpolistically competitive firms earn economic profit, firms enter into the industry in the long run and economic profit would be wiped out.
Other features of monpolistically competitive firms are:
1. They sell differentiated products
2. They set the prices for their goods and services
3. They have a downward sloping demand curve.
