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Mrrafil [7]
3 years ago
5

Illustrate your understanding of how to use the adjusted trial balance to prepare a statement of retained earnings by completing

the following sentence. In order to prepare the statement of retained earnings, the balance of the (Retained earnings / Cash) account balance as well as any debit balance in the (Dividends / Supplies) account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the Income statement.
Business
1 answer:
Licemer1 [7]3 years ago
7 0

Answer:

Answer explained below

Explanation:

In order to prepare the statement of retained earnings, the balance of the RETAINED EARNINGS account balance as well as any debit balance in the DIVIDENDS account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the Income Statement.

NOTE:

Retained earnings refer to the net income accrued to a business after debiting its dividends to shareholders.

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On April 1, year 1, Mary borrowed $130,000 to re-finance the original mortgage on her principal residence. Mary paid 1 points to
Simora [160]

Answer:

Mary can deduct $1,300 in year 1 for her points paid.

Explanation:

a) Data and Calculations:

April 1, Amount borrowed by Mary to refinance the original mortgage on her principal residence = $130,000

Payment of 1 points to reduce Mary's interest rate from 7% to 6% amounts to 1% of $130,000 = $1,300.

b) Mary paying 1 points is beneficial to her since her interest cost is reduced from 7% to 6%.  This implies that her total finance cost at the end of the 30-year period will be reduced.

4 0
3 years ago
Glimmens, a continental restaurant, started its operations by renting the ground floor of a three-storied building. As the busin
WITCHER [35]

Answer:

D) The negotiator role

Explanation:

Business managers often have to negotiate with suppliers, employees or in this the landlord in order to solve a potential conflict, lower costs or maximize revenues. When two parties negotiate, they both seek to maximize their own benefit, so a negotiation process can either result in a better or worse position for the company.

In this particular case, Marvin negotiated with his landlord in order to lease another floor of the building at a lower than market cost which benefits the financial situation of the restaurant. He did a good job and was a good negotiator since his company will benefit from this negotiation process.

5 0
3 years ago
A cost-benefit analysis of a highway is difficult to conduct because analysts a. are unlikely to have access to costs on similar
antoniya [11.8K]

Answer:

d. will have difficulty estimating the value of the highway.

Explanation:

Cost-benefit analysis (CBA) is used to examine and compare the cost associated with a project or task and the benefits derived from it.

Simply stated, cost-benefit analysis is a form of utilitarianism commonly used by individuals, business firms and government in the decision-making process, as all the cost incurred are determined and analyzed.

This ultimately implies that, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Cost-benefit analysis (CBA) sums the total cost associated with a project (activity) and compares this cost against the total benefits that would be generated. Thus, it helps in the decision-making process by comparing the net present value (NPV) of the cost of a particular project with the net present value (NPV) of its benefits.

In this context, the cost-benefit analysis of a highway would be difficult to conduct because analysts will have difficulty estimating the value of the highway.

This ultimately implies that, the value or cost benefits associated with the highway is difficult to ascertain or estimate.

6 0
3 years ago
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the e
Sav [38]

Answer:

Eye Deal Optometry and Insight Machines

Journal Entries for Eye Deal:

Debit Right of Use Asset $437,424

Credit Lease Liability $437,424

To record the right of use asset and lease liability.

Debit Lease Liability $22,906.44

Debit Interest Expense $1,093.56

Credit Cash $24,000

To record the first lease payment and interest expense.

March 31, 2018:

Debit Lease Liability $22,843.71

Debit Interest Expense $1,156.29

Credit Cash $24,000

To record the second lease payment and interest expense.

Journal Entries for Insight:

January 1, 2018:

Debit Lease Receivable $437,424

Credit Lease Asset $437,424

To record the lease receivable and asset.

Debit Cash $24,000

Credit Lease Receivable $22,906.44

Credit Interest Revenue $1,093.56

To record the first lease receipt and interest revenue.

March 31, 2018:

Debit Cash $24,000

Credit Lease Receivable $22,843.71

Credit Interest Revenue $1,156.29

To record the second lease receipt and interest revenue.

Explanation:

a) Data and Calculations:

Cost of equipment = $320,000

Cash selling price (fair market value/PV) = $437,424

Lease term = 5 years (20 quarterly periods)

Quarterly lease payments = $24,000

Lease Schedule for the first year:

Period              PV                        PMT              Interest         FV

Jan. 1, 2018 $437,424.00 $24,000.00 $1,093.56 $462,517.56

Mar. 31            $462,517.56 $24,000.00 $1,156.29 $487,673.85

June 30          $487,673.85 $24,000.00 $1,219.18         $512,893.04

Sept. 30          $512,893.04 $24,000.00 $1,282.23 $538,175.27

Dec. 31            $538,416.17 $24,000.00 $1,406.04 $563,822.21

7 0
3 years ago
Your company, a sole proprietorship, has assets of $34,583 and liabilities of $55,867. you decide to liquidate the company. assu
yanalaym [24]

A sole proprietor is personally liable for the liabilities which remain unpaid after the utilization of assets. In the given case the sole proprietorship has total assets of $34,583 and liabilities of $55,867. It means total assets can be used to pay off $34,583 out of total liabilities of $55,867 and the proprietor shall be personally liable for the balance liabilities= 55867-34583 = $21,284

Hence, you are personally liable for <u>$21,284</u>




8 0
3 years ago
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