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3 years ago

The owner's drawing account has a balance of $275. The correct entry to close the drawing account would be to debit:

Business

1 answer:

Dmitry [639]3 years ago

4 0

Answer:

Dr Owner capital account $275

Cr Drawings Account $275

Explanation:

The initial entry was:

Dr Drawings $275

Cr Inventory $275

And the closing entry is to close the drawing account which is done by crediting the whole balance left in the drawing account and charging it to owner capital account. By doing so the drawing shows lowers the profit as the owner has not paid any cash and the drawing account closes at zero balance at the end of the year.

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In September, Jeanette Company purchased materials costing $34,400 and incurred direct labor cost of $22,100. Manufacturing over

DedPeter [7]

Answer:

a. $34,900

Explanation:

The computation of the cost of direct material used is shown below:

= Opening balance of raw material + purchased materials - ending balance of raw material

= $10,300 + $34,400 - $9,800

= $34,900

Hence, the correct option is a.

7 0

3 years ago

The trial balance of Sheffield Corp. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventor

Ivahew [28]

Answer:

Particulars Amount

Beginning inventory, September 1, 2013 $18,870

Purchase $ 224,790

Less: Purchase return and allowance $ 5,430

Net purchase $ 219,360

Add: Freight in $9,780

Cost of goods purchased $229,140

Cost of goods available for sale $248,010

Less: Inventory August 31,2014 $20,100

Cost of goods sold $227,910

6 0

3 years ago

On December 16, 2015, B. Darin Company received $5,000 from S. Dee Company for rent of an office owned by B. Darin Company. The

WITCHER [35]

Explanation:

The journal entry is shown below:

Unearned rent revenue Dr $1,250

To Rent revenue $1,250

(Being the unearned rent revenue is recorded)

The computation is shown below:

= Received amount ÷ number of months × given number of months

= $5,000 ÷ 2 months × 0.5 months

= $1,250

So it include a debit to unearned rent revenue for $1,250 and credit the rent revenue for $1,250

4 0

3 years ago

A total of $4000 was invested, part of it at 8% interest and the remainder at 11%. if the total yearly interest amounted to $365

ella [17]

$1500 was invested at 11% $2500 was invested at 8% Assuming simple interest for each investment, we have the following expressions 0.11x = interest on 11% investment. (x = amount invested at 11%) 0.08(4000-x) = interest on 8% investment Adding the 2 expressions together and setting the sum to 365 gives 0.11x + 0.08(4000-x) = 365 Now solve for x by first distributing the 0.08 0.11x + 320 - 0.08x = 365 Subtract 320 from both sides and combine x's 0.03x = 45 Divide both sides by 0.03 x = 1500 So $1500 was invested at 11% and (4000-1500) = 2500 was invested at 8%

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3 years ago

Suppose a company purchased land and a building for $20,000,000 cash. The appraised value of the building was $17,000,000, and t

sladkih [1.3K]

Answer:

The amount of the purchase price will be allocated to the Land account is $6,400,000

Explanation:

For computing the purchase price of the land, first we have to compute the weightage of both the fixed assets which are shown below:

For building = Appraised value of building ÷ total value of fixed assets '

= $17,000,000 ÷ $25,000,000

= 68%

where,

Total value of fixed assets = Appraised value of the building + appraised value of the land

= $17,000,000 + $8,000,000

= $25,000,000

For land = Appraised value of land ÷ total value of fixed assets '

= $8,000,000 ÷ $25,000,000

= 32%

So, the purchase price of the land equal to

= Total purchase price of fixed assets × weightage of land

= $20,000,000 × 32%

= $6,400,000

6 0

3 years ago