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artcher [175]
3 years ago
14

American Chip Corporation’s reporting year-end is December 31. The following is a partial adjusted trial balance as of December

31, 2021. Account Title Debits Credits Retained earnings 81,000 Sales revenue 760,000 Interest revenue 3,500 Cost of goods sold 425,000 Salaries expense 110,000 Rent expense 16,000 Depreciation expense 31,000 Interest expense 5,100 Insurance expense 6,100 Required: Prepare the necessary closing entries at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

Explanation:

The closing entry for the following accounts are shown below:

1. Sales Revenue A/c Dr 760,000

  Interest Revenue A/c Dr $3,500

             To Income Summary $763,500

 (Being revenue account closed)

2. Income summary A/c Dr $593,200

                          To cost of goods sold $425,000

                          To Interest Expense $5,100

                           To Salaries  Expense $110,000

                           To depreciation  Expense $31,000

                            To Rent Expense $16,000

                             To  Insurance expense $6,100

(Being expenses accounts are closed)

3. Income summary A/c Dr $170,300

                           To Retained earning $170,300

(Being the difference is credited to retained earning)

The retained earning is computed by

=  Number 1 - Number 2

=  $763,500 -  $763,500

= $170,300

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Joaquin didn’t buy a netbook computer when they first came out, but he did purchase one a year after they were introduced to the
Andru [333]

Answer:

The answer is: Early adopter

Explanation:

Early adopter refers to consumers that use a new product or technology before others. Since early adopters tend to pay more for a new product, they also benefit first from the product's specifications and performance.

They also serve as reference for other users who are considering to buy or not to buy the new product.

3 0
2 years ago
At the beginning of the current year, trenton company inc.'s total assets were $248,000 and its total liabilities were $175,000.
anygoal [31]

The debt ratio is calculated by dividing the Total Liabilities by Total Assets. We are asked to calculate the debt ratio at the end of the year, hence we need to take year-end values for Total Liabilities and Total Assets.

We are given the Total Liabilities at the beginning of the year $175,000 and there is no change in the liabilities given, hence we can say that Total liabilities at the end of the year shall remain same = $175,000

We are given Total Assets at the end of the year are $260,000


Debt ratio = Total Liabilities / Total Assets = 175000/260000 = 0.673


Hence debt ratio at the end of the current year shall be <u>0.673</u>




8 0
3 years ago
Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se
Anna007 [38]

Answer:

Coupon rate = 0.04292 or 4.292%

Explanation:

To calculate the coupon rate of the bond, we will, use the formula for the price of the bond. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = x

Total periods (n)= 8

r or YTM = 0.051 or 5.1%

The formula to calculate the price of the bonds today is attached.

948 = x * [( 1 - (1+0.051)^-8) / 0.051]  +  1000 / (1+0.051)^8

948 = x * 6.437166243  +  671.7045216

948 - 671.7045216  =  x * 6.437166243

276.2954784 / 6.437166243  =  x

x = $42.92191128 rounded off to $42.92

Thus, the coupon payment on bond is $42.92

As the coupon payment is calculated by multiplying the coupon rate with the face value of the bond, then the coupon rate will be:

Coupon payment = face value * coupon rate

42.92 = 1000 * Coupon rate

Coupon rate = 42.92 / 1000

Coupon rate = 0.04292 or 4.292%

6 0
2 years ago
Mia has an outside basis of $50,000 in the Brimstone Partnership, including her share of liabilities of $25,000. In a liquidatin
fgiga [73]

Answer:

No gain or loss, Cash basis $10,000, Inventory $15,000

Explanation:

Calculation for Mia’s recognized gain or loss

First step is to calculate for Mia outside adjusted basis

Using this formula

Outside adjusted basis=Outside basis - Liabilities

Let plug in the formula

Outside adjusted basis=$50,000 - $25,000

Outside adjusted basis= $25,000

Second step is to calculate for Mia Gain or loss

Using this formula

Gain/Loss=Outside adjusted basis- Cash received - Inside basis

Let plug in the formula

Gain/Loss =$25,000 -$10,000 -$20,000

Gain/Loss = ($5,000)

Since Mia had ($5,000) this means Mia has no gain or loss

Last step is to calculate for Mia Inventory

Using this formula

Inventory = Cash + Gain/Loss

Let plug in the formula

Inventory =$10,000 + $5,000

Inventory = $15,000

Therefore Mai has NO gain or loss, Cash basis amount of $10,000 and Inventory amount of $15,000

7 0
3 years ago
When the interest rate in an economy increases, it is likely the result of either: an increase in the government budget surplus
SIZIF [17.4K]

Answer: c). a decrease in the government's budget surplus or an increase in its budget deficit.

Explanation: Budget surplus refers to the excess of government revenue from taxes and other sources over its expenditure. While, budget deficit refers to the excess of government expenditures over its revenue.

BS= T>G

BD= G>T

A decrease in the government's budget surplus or an increase in its budget deficit leads to an increase in the interest rate in the economy. Thus the correct option is c.

5 0
3 years ago
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