1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mila [183]
3 years ago
7

The income summary account has a debit balance of $10,000 prior to closing. the owner's drawing account has a balance of $7,000

before closing. the owner's capital account will
Business
1 answer:
lana [24]3 years ago
5 0

Decrease by $17,000.

An income summer with a debit balance means that the company had a loss in that accounting cycle. In order to close an income summary with a debit balance you need to credit the income summary account and debit the capital account, which decreases the owner’s equity.

The drawing account is the money that the owner has withdrawn from the company. In order to close this account you will need to credit drawing and debit the capital account, which decreases the balance.

Both items will decrease the capital account, for a total of $17,000.

You might be interested in
According to Piaget, children in the preoperational stage are able to Group of answer choices reason abstractly and test hypothe
Olenka [21]

Answer:

represent objects with words and images

Explanation:

The preoperational stage occurs is the second stage of Piaget's theory of Cognitive Development. Here, the child becomes familiar with the use of symbols. This also helps in the development of the child's language skills.

The child starts to understand the concept of thinking. This is known as meta-cognition. The ability of the child to represent objects with words and images is integral in the learning and use of language.

Hence, the answer is represent objects with words and images.

5 0
4 years ago
Pepsi has a strong brand equity. Over the years, Pepsi has introduced Vanilla Pepsi, Lemon Pepsi, Pepsi One, Pepsi Blue, and Pep
antoniya [11.8K]

Answer: These expansions of the Pepsi brand are termed: <u>"(D) Line Extensions".</u>

Explanation: The extension of the line is the creation of a new product with two fundamental characteristics: First, the product belongs to the same category in which the brand was already entering. Second, the organization continues to use the same brand that it traditionally used in that category.

4 0
3 years ago
What is your reaction to Harriet's suggestion of using the cost of debt only?
Ahat [919]

Answer:

No, it is a bad idea to use only the cost of debt

Explanation:

Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.

Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.

When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.

8 0
3 years ago
Carla and Eliza share income equally. For the current year, the partnership net income is $40,000. Carla made withdrawals of $12
sveticcg [70]

Answer:

$54,000

Explanation:

Eliza's share of net income = $40,000 ÷ 2

                                             = $20,000

Eliza made withdrawals = $21,000

Eliza capital = $55,000

Eliza’s capital account balance at the end of the year:

= Eliza capital - Eliza withdrawals + Net income share of Eliza

= $55,000 - $21,000 + $20,000

= $54,000

Therefore, the Eliza’s capital account balance at the end of the year is $54,000.

8 0
3 years ago
Sarah meeham blends coffee for​ tasti-delight. She needs to prepare 160160 pounds of blended coffee beans selling for ​$4.834.83
Kruka [31]
6.256.25 + 3.003.00 = 625628003
7 0
3 years ago
Other questions:
  • Ada signed a simple discount promissory note for $5,500. the discount rate is 12%, and the term of the note is 5 months. what ar
    11·1 answer
  • A good or service is said to be scarce when:
    15·1 answer
  • Braxton Corp. has no debt but can borrow at 6.7 percent. The firm’s WACC is currently 8.5 percent, and the tax rate is 35 percen
    15·1 answer
  • The _[blank]_ and _[blank]_ work to create spaces that are better for the environment as well as healthier for people.
    8·1 answer
  • What gemstone is the most expensive per carat
    11·1 answer
  • Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a
    12·1 answer
  • Hope Springs needs tablet computers that are fast, include 24/7 tech support, and include a generous volume discount. These crit
    13·1 answer
  • A​ _____ is in​ top-down format and shows each level of​ design, its relationship to other​ levels, and its place in the overall
    9·1 answer
  • The foreign subsidiary of a large corporation is:_________ a) a cost center. b) an investment center. c) not a responsibility ce
    13·1 answer
  • In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!