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rjkz [21]
3 years ago
7

Rider Company is in the process of preparing it closing entries. It first closes its revenue accounts by crediting the Income Su

mmary account for $68,000 and then, closes its expense accounts by debiting the Income Summary account for $45,000. The entry to then close the Income Summary account is:_____. A. Debit Income Summary, $68,000, and credit Income Summary, $45,000. B. Debit Income Summary, $23,000, and credit Retained Earnings, $23,000. C. Credit Income Summary, $23,000, and debit Retained Earnings, $23,000. D. Debit Dividends, $45,000, and credit Income Summary, $45,000.
Business
1 answer:
Ksivusya [100]3 years ago
7 0

Answer:

B. Debit Income summary                  Debit              $ 23,000

   Retained Earnings                           Credit                                $ 23,000

Explanation:

The closing entries are recorded to close the current year's income statement  to the retained earnings account,

According to the data in the question, the revenue is closed to the credit of the income Summary  of $ 68,000 and the expenses are closed to the debit of the Income Summary of $ 45,000. This leaves a credit balance of $ 23,000 in the income summary account which is closed by debiting the income summary account and crediting the retained earnings account.

Since the revenue exceeded the expenses, the result ia  a profir which should increase the retained earnings account, which would be the case by a credit to the retained earnings account.

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c. $524,000 and $250,000

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3 years ago
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Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivable with a face value of
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Answer:

Shally will not having any amount of bad debt deduction for the present year.

Explanation:

In the present year, Shally will not having any amount of bad debt deduction because she has a gain or income of $5,000. As, last year she has account receivable of $60,000 but this year she settled the account by receiving the $65,000 amount. So, she has received more amount than the basis in the receivable. Therefore, she will not have any bad debt deduction this year.

8 0
4 years ago
The Creamery is analyzing a project with expected sales of3,800 units, give or take 5 percent. The expected variable cost per un
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Answer:

operation cash flow ( OCF ) is  $98800

Explanation:

given data

number of units = 3800 units

variable cost = $185 per unit

fixed costs = $364,000

depreciation expense = $104,000

sales price = $305 per unit

tax rate = 35 %

fix cost = $360,000

to find out

what is the OCF given this analysis

solution

we know operation cash flow ( OCF ) is express as

OCF = [ { selling - variable cost ) × no of units } - fixed cost ] × [ tax rate ] + [ deprecation × tax rate ]      ..............................1

put here all these value

OCF = [ { 305 - 185 ) × 3800 } - 360000 ] × [ 35% of income before tax ] + [ 104,000 × 0.35 ]

OCF = 96000 - 0.35×96000 + 36400

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OCF = $98800

4 0
3 years ago
Which bond portfolio where all investment is made up front would be most negatively affected by a sharp rise in interest rates?
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Option C. barbell

By definition, money market products are liquid. Each buyer knows that they will be paid when they mature in the near future, so they are easily traded at a discount that matches the market rate.

When interest rates rise, bond prices fall (and vice versa), and long-term bonds are the most sensitive to changes in interest rates. This is because longer-term bonds have longer durations than shorter-term bonds that are nearing maturity with fewer coupon payments.

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2 years ago
The level of the Baring market index is 22,300 at the start of the year and 26,800 at the end. The dividend yield on the index i
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Answer: 24.48%

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8 0
3 years ago
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