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4 years ago

10

Review and complete the following statement regarding the Income Summary account. The Income Summary account is (debited/credite

d) for the sum of all revenue accounts and is (debited/credited) for the sum of all expense accounts and its balance will be transferred to the (Retained Earnings/Cash) account.

1 answer:

Artist 52 [7]4 years ago

8 0

Answer:

Credited , Debited, and Retained Earnings

Explanation:

The closing entries are presented below:

1. Revenue A/c Dr XXXXX

To Income summary A/c XXXXX

(Being the revenue account is closed)

2. Income summary A/c Dr XXXXX

To Expenses A/c XXXXX

(Being the expenses are closed)

3. Income summary A/c Dr XXXXX

To Retained earnings A/c XXXXX

(Being the difference i.e net profit is recorded)

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AleksAgata [21]

Answer:

The answer is,

O To raise money for the corporation.

Explanation:

Issuing share is a method of financing for a corporation. Company can borrow money from external parties such as banks or issue debentures as well. However, the cost of such borrowings tends to be higher than issuing equity stocks and there are many legal necessities as well in such a process.

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3 years ago

On January 1, 2019, Wildhorse Co. issued $379,500, 7%, 5-year bonds at face value. Interest is payable annually on January 1. (a

nikklg [1K]

Answer:

See the explanation for the answer.

Explanation:

(a)

Bonds are issued at face value

date Account debit credit

Jan 1 ,2019 cash $379,500

bonds payable $379,500

[to record cash received

against bonds issued]

b.

Interest accrued from Jan-Dec = $379,500*7% = $26,565

Account

Dec 31 ,2019 Interest expense $26,565

Interest payable on bonds $26,565

As interest is accrued it will be expensed

.

However, it is not paid so it will be interest payable

c) Interest paid

Debit Credit

Jan 1 ,2020 Interest payable on bonds $26,565

Cash $26,565

8 0

3 years ago

A rich donor gives a hospital $100,000 one year from today. Each year after that, the hospital will receive a payment 5% larger

wariber [46]

Answer:

D) $779,843.27

Explanation:

The present value of this donation = Donation in Year 1/(1+ discount rate)^9 + Donation in Year 2/(1+ discount rate)^8 + ….. + Donation in Year 2/(1+ discount rate)^1

= $100,000/(1+9%) + $100,000*(1+5%)/(1+9%)^2 +$100,000*(1+5%)^2/(1+9%)^3…. +$100,000*(1+5%)^9/(1+9%)^10 = $779,843.27

Or we can easily input in excel and generate NPV as file attached; in which the formula is NPV(discount rate, cash inflow year 1 : cash inflow year 10) = (9%, 100000,100000*(1+5%)….,100000*(1+5%)^9) = $779,843.27

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3 years ago

22. Communication that takes place between a manager and employees of other workgroups is called ………… communication.

garri49 [273]

Answer:

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4 years ago

Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by d

Bingel [31]

Answer:

d. Skippy’s demand for peanut butter increases today.

Explanation:

The taste and preferences of the consumers are one of the factors affecting the demand for the goods. The demand for goods increases according to tastes and preferences. Another factor of an increase in demand is the expectation of a consumer regarding the future prices of the goods.

In the given scenario, Skippy's demand for the peanut butter will increase because of the above mentioned two reasons. Since he is very much fond of the peanut butter, the demand will remain constant. At the same time, after reading about the future unavailability of the peanut butter and the increase in the price of it, the demand for the peanut butter will rise the present day.

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3 years ago