Answer:
The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed is:
Debit Income Summary Account $63,300
Credit Retained Earnings $63,300
To close the income summary account.
Explanation:
a) Closing entries are made to close the temporary (Income Summary) accounts so that only the permanent (balance sheet) accounts remain. Temporary accounts are period accounts whose balances are taken to the income summary account. They are not carried over to the next accounting period, except the net financial performance result, known as the net income, which adjusts the Retained Earnings.
Answer: Selling the bonds at a premium has the effect of causing the cost of borrowing money to be lower than the bond when interest is paid.
Explanation: When a bond is traded above the par value, it is being sold at premium. Since the bond is sold above it, the interest rate is higher but the cost to borrow money is lower. Purchasing a bond a premium is expensive because it is above market value but selling a bond at premium contributes to more money made off of the sale.
Answer and Explanation:
The answer and workings can be viewed in the snapshot below:
An expanded income statement is generally divided by the different categories of revenue. The most common categories are <u>sales expenses and general and admin expenses.</u>
The selling, general, and administrative expense, or SG&A, refers to all corporate operational costs that are not accounted for in the cost of products sold. Since they raise a company's break-even point, management should exercise strict control over these expenses.
Prime costs are a company's outlay for the components used in production. The direct costs of labor and raw materials used in the production of a good are determined by the sales expenses and general and admin expenses. The direct costs of labor and raw materials used in the production of a good are determined by the prime cost.
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Answer:
23%
Explanation:
The computation of the average rate is shown below:
But before that following calculations to be done
Annual Depreciation is
= ($132,000 - $16,000) ÷ 10
= $11,600
The Annual Net Income would increase by
= $34,000 - $5,380 - $11,600
= $17,020
Now Average Investment is
= ($132,000 + $16,000) ÷ 2
= $74000
The Average rate of return is
= Increase in Annual Net Income ÷ Average Investment
= $17,020 ÷ $74,000
= 23%
