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ELEN [110]
3 years ago
13

Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018

. During the 2018 accounting cycle, Love earned $19,400 of revenue, incurred $9,800 of expense, and paid $500 of dividends. Revenues and expenses were recognized evenly throughout the accounting period. Required Determine the balance in the Retained Earnings account as of January 1, 2019. Determine the balance in the temporary accounts as of January 1, 2018. Determine the after-closing balance in the Retained Earnings account as of December 31, 2017. Determine the balance in the Retained Earnings account as of June 30, 2018.
Business
1 answer:
konstantin123 [22]3 years ago
4 0

Answer and Explanation:

  • Closing Balance (Retained earning ) of 31 Dec 2018 is called Opening Balance of 1 Jan 2019 , i.e. $42,100
  • There is no particular information provide for 1 Jan 2018 .So, assume there is Zero balance of retained Earning
  • Calculation of retained earning of 31 Dec 2017

Retained earning                             $42,100

Less: revenue during the year        $19,400

Add: Expenses During the year      $9,800

<u>Add : Dividend                                  $500 </u>

Retained earning on 31 Dec 2017 $33,000

  • Retained earning is a temporary account So, $33,000 is balance of Retained earning At 30 June 2018.
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Answer:

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(C) Investments in the stock market are generally designed to increase an​ individual's future​ wealth, the purchase of bonds typically allows one to at least retain their purchasing​ power, while investment in savings accounts provide liquidity. FALSE

Explanation:

(A) The currency can be used to anything he owner wants.

(B) Correct, the ecnomics always define that a person after receiving his income has only two option available. It can used in consumer goods. Or it can saved  to invest

(C) The reason the stock and bonds exist is to raise fund for companys whichyield a return. The company takes the most benefit from this system as it would be difficult to convince a single peroson to invest a large amount in his business. Through sotck it can ask for fewer amount to more people but, this people will receive an income but it won't become rich for a couple shares.

As this part is not true, then the whole sentence must be catalogate as false.

5 0
3 years ago
Qualities of useful accounting information​
Bad White [126]

Answer:

Understandability.

Relevance.

Consistency.

Comparability.

Reliability.

Objectivity.

6 0
2 years ago
Which one of the following is not an assumption of the EOQ model? Decisions for one item can be made independently of decisions
irga5000 [103]

Answer:

Quantity discounts can be taken advantage of for large lot sizes.

Explanation:

The EOQ model assumptions:

the order of one item does not intervene with the other.

The order will arrive without delay and with a specific amount of goods.

no losses or damage in transit

The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:

Q_{opt} = \sqrt{\frac{2DS}{H}}

Its use: Demand of the good

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3 years ago
LO 7.3Which is not a section of the cash budget?
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Answer:

allowance for uncollectible accounts

Explanation:

The cash budget represents the cash inflow and cash outflow position with respect of cash receipts and cash payments i.e cash disbursement plus it also involves financing needs i.e how much amount is to be borrowed

But it does not involve the allowance for uncollectible accounts  as it is not shown in the cash budget because it is shown under the debtors side with the negative amount of the balance sheet

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8 0
3 years ago
Hotaling Corporation is analyzing a capital expenditure that will involve a cash outlay of $146,040. Estimated cash flows are ex
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Answer:

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2. 8% rate (Annuity factor = 5.206)

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