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alukav5142 [94]
3 years ago
11

Exercise 4-5 Computing income summary and ending capital balance from closing entries LO C1, P2 Capri Company began the current

period with a $20,000 credit balance in the K. Capri, Capital account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances.
Service fees earned 70,000
Salaries expense 38,000
Depreciation expense 8,000
Interest revenue 7,000
K. Capri, Withdrawals 12,000
Utilities expense 4,000

After closing the revenue and expense accounts, what will be the balance of the Income Summary account?
Business
1 answer:
vesna_86 [32]3 years ago
7 0

Answer:

$27,000

Explanation:

The closing entries are as follows:

1. Service fees earned A/c Dr $70,000

  Interest revenue A/c Dr $7,000

                  To Income Summary $77,000

(Being revenue account closed)

2. Income summary A/c Dr $50,000

           To Salaries expense $38,000

           To Depreciation expense $8,000

           To Utilities expense $4,000

(Being expenses accounts are closed)

3. Income summary A/c Dr $27,000    ($77,000 - $50,000)

                    To Retained earning $27,000

(Being the difference is credited to retained earning)

Therefore, the balance left in the income summary account is $27,000

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3 years ago
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production cost
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Answer:

The correct answer is $95,400 lower than absorption costing.

Explanation:

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Units in ending inventory = Units manufactured - Sold units

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Fixed manufacturing OH per unit = $595,800 ÷ 33,100 = $18

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3 years ago
Alice worked for Fountain Valley, Inc., a corporation that manufactured baby supplies. According to her employment contract with
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Question Completion with Answer Options:

A. Yes, according to the terms of her contract.

B. Yes, according to the duty of good faith and fair dealing.

C. No, according to the at-will termination provision in her contract.

D. No, because subsequent conduct of the parties modified the contract.

Answer:

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Answer:

B) GDP would definitely increase because GDP excludes leisure.

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Which of the following is true of both paying with a check and paying with a debit card? A. Both work like a loan from your bank
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