All categories

3 years ago

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:

Business

1 answer:

Nataly [62]3 years ago

6 0

Answer:

b. Dec. 31

Income Summary 925

Fees Earned 750

Rent Revenue 175

Explanation:

At the end of each accounting period, the elements of the income statements which are the revenues earned and the expenses incurred are usually closed to the income summary account.

The revenue earned which is normally a credit balance is closed by debiting the account and crediting the income summary. The expenses are closed by crediting the account and debiting the income summary.

Hence if Fees Earned, $750, and Rent Revenue, $175,

Total revenue = $750 + $175

= $925

You might be interested in

Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as foll

Nadya [2.5K]

Answer:

A. $30,000 decrease

Explanation:

Ortega Industries

Direct materials $ 150,000

Direct labor 240,000

Variable manufacturing overhead 90,000

Fixed manufacturing overhead 120,000

Total Manufacturing Costs for 15000 units is $ 600,000

Total Manufacturing Costs per unit= Total Costs/ Total units= $600,000 / 15000= $ 40

An outside supplier has offered to sell the component to Ortega for $34.

Profit per unit = $ 6

Profit for 15000 units = $6*15000= $ 90,000

The fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility= $ 120,000 Which cannot be used for any other facility.

Unavoidable Fixed Costs= $ 120,000

Less Profits= $ 90,000

Decrease in operating Profits $ 30,000

If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a $30,000 decrease because after the profit of $ 90,000 cancel the effect of fixed costs of $ 90,000 the fixed costs of $ 30,000 will still be unavoidable and cannot be used for any other facility.

4 0

3 years ago

Where did the indestrial revolution starts and why did it beinging there

Marat540 [252]

Answer:

it began in 1760. it started there because of the new inventions that were made like the cotton gin, electricity and other inventions. More and more countries got access to these inventions and they became more and more industrialized and urban.

5 0

2 years ago

Lucas Diving Supplies Company, in its first year of business, had labor costs of $57,000, overhead costs of $88,000, materials p

WARRIOR [948]

Answer:

$162,000

Explanation:

The amount of cost of goods manufactured is computed as

= Labor cost + Direct materials purchased + overhead costs - ending balance of materials - ending balance of work in process

= $57,000 + $25,000 + $88,000 - $3,000 - $5,000

= $162,000

Hence, the cost of goods manufactured is $162,000

7 0

3 years ago

For the fundraiser will sold 225 candy bars here in the dollar for each almond candy bar he sells and $0.75 for

Leya [2.2K]

8 0

3 years ago

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery

vekshin1

Answer:

Most Company

Project Y Project Z

1. Annual expected net cash flows $140,500 $151,347

2. Payback period 2.5 years 2.3 years

3. Accounting rate of return 15.3% 9.9%

4. Net present value, using 9% $105,220 $33,059

Explanation:

a) Data and Calculations:

Project Y Project Z

Initial investment costs $350,000 $350,000

Useful life of project 4 years 3 years

Salvage value $0 $0

Annual depreciation $87,500 $116,667

Sales $390,000 $312,000

Expenses

Direct materials 54,600 39,000

Direct labor 78,000 46,800

Overhead including depreciation 140,400 140,400

Selling and administrative expenses 28,000 28,000

Total expenses 301,000 254,200

Pretax income 89,000 57,800

Income taxes (40%) 35,600 23,120

Net income $53,400 $34,680

Accounting rate of return 15.3% 9.9%

= Net income/Initial investment cost * 100

Annual Cash inflows:

Net income $53,400 $34,680

Annual depreciation 87,500 116,667

Annual expected net cash flows $140,500 $151,347

PV annuity factor at 9% for 4 years 3.240 2.531

PV of annual cash inflows $455,220 $383,059

Net Present Value = (Initial investment - PV of annual cash flows)

NPV = $105,220 $33,059

Payback period = Initial investment cost/Annual cash inflow

6 0

3 years ago