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ZanzabumX [31]
3 years ago
11

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 __________.
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

Dr Income summary 23,000

    Cr Retained earnings 23,000

Explanation:

The income summary is a temporary account created to close the income statement and expense accounts. It has a credit balance if the company made a profit during the year, or a debit balance if it lost money.

It must be closed to retained earnings, if the company generated profits, retained earnings will increase. On the other hand, if the company generated losses, retained earnings will decrease.

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In 1 or 2 sentences, define an externality and explain how the government makes companies take responsibility for negative exter
tamaranim1 [39]

In economics an externality is the cost or benefit that affects someone who did not choose this. It is the true cost of a product that can be both positive or negative. Pollution can be an example of this. An educated labor force producing more is a positive example of this. The government rewards positive externality and punishes negative externality. Rewards can be surpluses and taxes can be punishments.

7 0
3 years ago
The process of asset transformation refers to the conversion of:_______
kondaur [170]

Answer: c. Risky assets into safer assets

Explanation:

The process of asset transformation refers to the conversion of risky assets into safer assets. Asset transformationa is simply a form of transformation in which financial institutions like banks use deposits in the generation of revenue through the pooling deposits in order to make loans. It has to do with transforming bank liabilities into bank assets.

6 0
3 years ago
Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue
Orlov [11]

Answer:

Rest of question:

... equals marginal cost.

Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.

As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.

This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.

8 0
2 years ago
You are assigned as the manager of risk management project for Health Network, inc. The attached case study provides brief intro
Grace [21]

Explanation:

<em>Structure of the information systems in Health Network:</em>

-Software: It is made up of 1000 production servers that make it possible for users to access the different services through the web.

-Hardware: It is made up of the three data centers that are the sites or facilities that contain the information systems, we can also include the 650 corporate laptops and mobile devices.

-Personal: These are the users who receive the benefits, such as all the potential clients, the doctors who provide their services, and all the personnel who work in the data centers.

<em>Main objective and scope of the project in Health Network:</em>

 

A risk mitigation plan must be developed that allows to face the various threats previously identified.

As the main scope of the project, a BCP (business continuity plan) must be developed that allows employees to continue working remotely and safely from the web.

A computer strategy should be considered that allows employees to access the payroll and accounting application from their homes during winter storms.

6 0
2 years ago
Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience
GrogVix [38]

Answer:

a. $169,800

Explanation:

As for the provided information we have,

Sales data, for each month

July              $120,000

August         $211,000

September   $198,000

Cash receipt budgeted for September shall be:

36% of sale of the month of July = $120,000 \times 36% = $43,200

60% of sale of the month of August = $211,000 \times 60% = $126,600

Thus, total expected amount = $169,800

Therefore, correct option is

a. $169,800

4 0
3 years ago
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