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iVinArrow [24]
3 years ago
6

Exercise 6.6 Closing entries. LO 6-1 The ledger accounts of AXX Internet Company appear as follows on March 31, 2019: ACCOUNT NO

. ACCOUNT BALANCE 101 Cash $ 71,000 111 Accounts Receivable 57,920 121 Supplies 9,700 131 Prepaid Insurance 24,100 141 Equipment 109,000 142 Accumulated Depreciation—Equipment 40,420 202 Accounts Payable 12,100 301 Aretha Hinkle, Capital 121,000 302 Aretha Hinkle, Drawing 12,100 401 Fees Income 349,260 510 Depreciation Expense—Equipment 20,260 511 Insurance Expense 10,500 514 Rent Expense 32,100 517 Salaries Expense 157,000 518 Supplies Expense 4,700 519 Telephone Expense 5,900 523 Utilities Expense 8,500 All accounts have normal balances. Required: Prepare the closing entries. Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
Business
2 answers:
Margarita [4]3 years ago
6 0

Answer:

Explanation:

March 31, 2019

Dr Fee income 249,260

Cr Income summary 249,260

March 31, 2019

Dr Income Summary 238,960

Cr Depreciation exp.-Equipment 20,260

Cr Insurance expense 10,500

Cr Rent expense 32,100

Cr Salaries expense 157,000

Cr Supplies expense 4,700

Cr Telephone expense 5,900

Cr Utilities expense 8,500

March 31, 2019

Dr Income Summary 10,300 [249,260-238,960]

Cr Retained earnings 10,300

March 31, 2019

Dr Aretha Hinkle, Capital 12,100

Cr Aretha Hinkle, Drawing 12,100

Marianna [84]3 years ago
3 0

AXX Internet Company General Journal

Mar 31, 2019

Dr Fees Income$349,260

Cr Income Summary$349,260

Revenue account closed

Mar 31, 2019

Dr Income Summary 239,960

Cr Depreciation Expense-Equipment 20,260

Cr Insurance Expense 11,500

Cr Rent Expense 32,100

Cr Salaries Expense 157,000

Cr Supplies Expense 4,700

Cr Telephone Expenses 5,900

Cr Utilities Expense 8,500

All expenses account closed

Mar 31, 2019

Dr Income Summary 109,300

Cr Aretha Hinkle, Capital 109,300

Summary account to capital closed

Mar 31, 2019

Dr Aretha Hinkle, Capital 12,100

Cr Arehtha, Hinkle, Drawing 12,100

Drawing to owner's capital closed

Workings

1st Income summary is the addition of all the expenses which is 239,960

2nd Income summary

Fees income- the total addition of all expenses

349,260 - 239,960 = 109,300

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Answer:

Janet Foster

a. Janet could save $12.44 on the printer by borrowing $800 to take advantage of the cash discount.

b. On the computer, the difference in the final payment between choices 1 and 2 is $197.

It is advisable for Janet to choose the first option.

Explanation:

a) Data and Calculations:

Printer:

List price of printer = $900

Trade discount =          100

Purchase cost =        $800

Cash discount terms = 2/10, n/30

Cash discount = $16 ($800 * 2%)

Interest on loan to purchase printer = $3.56 ($800 * 8% * 20/360)

Savings if loan is borrowed = $12.44 ($16 - $3.56)

Computer:

List price = $4,060

Trade discount = 25% or $1,015 ($4,060 * 25%)

Purchase cost = $3,045

Payment options:

1) = $160 * 17 months = $2,720

Balance on 18th month    325

Total payment =           $3,045

2) = Payment with 8% interest for 18 months equal payment = $180.08

From an online financial calculator:

N (# of periods)  18

I/Y (Interest per year)  8

PV (Present Value)   $3,045

FV (Future Value)  0

P/Y (# of periods per year)  12

C/Y (# of times interest compound per year)  12

PMT made at the end of each period

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Sum of all periodic payments $3,241.48

Total Interest $196.48

Difference in final payment:

Choice 1 , total payment =    $3,045

Choice 2, total payment =    $3,242

Difference in final payment = $197

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Which of the following scenarios would result in a decrease in the wage rate of solar panel installers and a decrease in the qua
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Answer:

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