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Sati [7]
3 years ago
15

For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid duri

ng the year. Which of the following entries could not be a closing entry?
a) debit retained earnings 37,000, credit dividends 37,000
b) debit revenues 187000, credit income summary 187000
c) debit income summary 78,000, credit retained earnings 78000
d) debit income summary 187000, credit revenues 187000
e) debit income summary 109000, credit expenses 109000
Business
1 answer:
Dovator [93]3 years ago
3 0

Answer:

D) Debit income summary 187000, credit revenues 187000

Explanation:

When dividend is declared, following journal entry is passed

Retained Earnings                                    Dr.

    To Dividend Payable

(Being declared dividend recorded)

When dividends are actually paid, the journal entry is

Dividend Payable A/C                              Dr.

     To Cash A/C

(Being dividend paid recorded)

Income summary account is prepared as a temporary account while income statement represents permanent account.

Income summary shows net income balance i.e Revenue less expenses.

As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.

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svetoff [14.1K]

Answer:

Me I would find out everything I need to know I would check to see what’s there Star are see how many complain and how long they been open ETC

Explanation:

5 0
3 years ago
Read 2 more answers
Ingress & Egress Math Quiz
Shtirlitz [24]

18 ticket takers should Madge hire, if Madge is the manager at a sports arena that draws an average 3,500 patrons per event and each ticket taker can process  200 event-goers per event.

Explanation:

The given is,

           Madge is the manager at sports arena

           3,500 patrons per event

          Ticket takers can process 200 event-goers per event

Step: 1

        Let, x - No. of ticket takers

        Formula to calculate ticket takers,

                  x=\frac{Average patrons per event}{Ability of ticket taker to process the event}

        Substitute the values,

                  x=\frac{3500}{200}

                     = 17.5

                  x ≅ 18 ticket takers

        Madge should hire 18 ticket takers.

Result:

        18 ticket takers should Madge hire, if Madge is the manager at a sports arena that draws an average 3,500 patrons per event and each ticket taker can process  200 event-goers per event.

8 0
3 years ago
A company has outstanding 10 million shares of $2 par common stock and 1 million shares of $4 par preferred stock. The preferred
deff fn [24]

Answer:

C. Preferred stockholders will receive the entire $300,000 and they must also be paid the remaining $20,000 sometime in the future before common stockholders will receive any dividends.

Explanation:

Preferred shares have preference over the common shares in respect of dividend. Since $300,000 is paid as dividend, the entire amount has to be paid to the preferred shareholders, as the total amount payable to them as dividend = $1,000,000 * 4 *8% = $320,000, which is more than the total dividend declared.

In addition, as the preferred shares have cumulative dividend preference the shortfall in any year is to be carried forward and paid in the year in which dividends are paid and that too before any dividend is paid to the common shareholders.

3 0
3 years ago
Money demand refers to a how much income people want to make per year. b how much wealth people want to hold in liquid form. c t
scoray [572]

Answer:

b. how much wealth people want to hold in liquid form.

Explanation:

Money demand refers to the amount of liquid assets or wealth, which can be quickly converted to cash, an individual desires hold at a particular point in time, which enables the individual to easily carry out transactions such as exchange of goods and services. It is simply referred to as the desire of people to hold cash. It does include illiquid physical assets that cannot be quickly converted to cash. It includes cash or bank deposits.

5 0
3 years ago
Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two dis
nata0808 [166]

Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.

A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.

What is discount points?

  • Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
  • Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
  • Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
  • Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.

To know more about discount points visit:

brainly.com/question/14329985?

#SPJ4

4 0
1 year ago
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