Answer:So, a capital gain is a profit that occurs when an investment is sold for a higher price than the original purchase price. Investors do not make capital ...
Explanation:
Answer:
The Correct Statements regarding an adjusted trial balance and its use in preparing financial statements are:
1. The adjusted trial balance includes all accounts and balances appearing in financial statements.
3. Financial statements are easier to prepare using the adjusted trial balance than the general ledger.
5. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings.
6. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Explanation:
a) The above answers leave the following incorrect statements about the adjusted trial balance:
2. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance.
4. The balance sheet is the first financial statement prepared.
b) In conclusion, the adjusted trial balance, which lists the general ledger account balances, is compiled after considering period-end adjustment entries, in line with the accrual concept and the matching principles of generally accepted accounting principles.
Answer:
Floyd 43,500
Merriam 12,500
Ramelow 23,000
Explanation:
heir capital account balances as of December 31, 2020 stood as follows: Floyd $ 46,000
Merriam $ 25,000
Ramelow 1/3 interest.
23,000 is the third of the parthnership
23,000 x 3 = 69,000
46,000 + 25,000 + 23,000 = 94,000
loss of 94,000 - 69,000 = 25,000
distributed equally among the members:
Floyd 46,000 - 25,000 / 2 = 43,500
Merriam 25,000 - 25,000 / 2 = 12,500
Answer:
23,000 units
Explanation:
Beginning WIP inventory + Units started into production = Ending WIP inventory + Units completed and transferred out
Units started into production = Ending WIP inventory + Units completed and transferred out - Beginning WIP inventory
= 6,000 + 25,000 - 8,000 = 23,000
