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iren2701 [21]
3 years ago
5

The ledger of Rios Company contains the following balances after adjustments: Retained Earnings $30,000; Dividends $2,000; Servi

ce Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000. Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the closing entries at December 31.
Business
1 answer:
ch4aika [34]3 years ago
7 0

Answer:

Service Revenue 50,000 debit

    Income summary  50,000 credit

--to close revenues accounts--

Income summary        34,000 debit

  Salaries and Wages Expense 27,000 credit

  Supplies Expense                      7,000 credit

--to close expenses accounts--

Income summary        2,000 debit

  Dividends                          2,000 credit

--to close dividends account--

Income summary       14,000 debit

  Retained Earnings          14,000 credit

Explanation:

To close the temporary accounts which are, revenues, expenses and dividends we will use an auxiliary account called Income Summary

Then, once all are closed we transfer their balance into retained earnings:

  Income summary

DEBIT           CREDIT

                    50,000

34,000

<u>  2,000                          </u>

       Balance 14,000

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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the fo
Sholpan [36]

Answer:

The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.

Explanation:

i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130  

Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176

CPI in 2020 = ($130 / $130) * 100 = 100

CPI in 2021 = ($176 / $130) * 100 = 135.38  

Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%

ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300

Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950

Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300

Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450

GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100

GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48

Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%

5 0
3 years ago
Match the threats in the left column to appropriate control procedures in the right col-umn. More than one control may be applic
marshall27 [118]

Answer: Please refer to Explanation

Explanation:

When there are no or relatively low control procedures in a company, there is a threat of financial mismanagement and misdemeanors. This is why control procedures are needed, to address this and stop the leakage of company resources.

1. Failing to take available purchase discounts for prompt payment.

d. File invoices by due date.

e. Maintain a cash budget.

Here two things can be done to control the threat. Firstly, by paying invoices during the discount period, the company can be able to take discounts on goods and services provided to it. Also by maintaining a cash budget, a company can put when a payment is due to be able to claim a discount and act accordingly.

2. Recording and posting errors in accounts payable.

Conduct an automated comparison of total change in cash to total changes in accounts payable.

Using a program to check whether the amounts in the cash account corresponds to the payments on the Accounts payable account will tell you if the amounts tally and will therefore reduce errors.

3. Paying for items not received.

Issue checks only for complete voucher packages (receiving report, supplier invoice, and purchase order).

When issuing checks, make sure that all the above mentioned reports are in order. That way you can check if the goods were delivered as well as if they were even ordered properly in the first place.

4. Kickbacks.

Require purchasing agents to disclose financial or personal interests in suppliers.

Train employees in how to properly respond to gifts or incentives offered by suppliers.

By requiring that purchase agents disclose their relationships with suppliers, you can monitor to check and see if there is a possibility of kickbacks occuring.

Also, by training employees on acceptable methods of receiving gifts, they can know when it is no longer a gift but rather a kickback.

5. Theft of inventory.

b. Document all transfers of inventory. c. Restrict physical access to inventory.

By documenting all transfers going in and out of inventory, the true inventory figure can be known from the records and then used to match with the actual inventory to see if they truly tally.

Restricting the amount of people who have access to the inventory to a few trusted people also limits the amount of people who can steal the inventory as well as making it easier to find out who did when it is done because the focus can be on a few people.

8 0
3 years ago
3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the
melisa1 [442]

Answer:

The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.

Explanation:

The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.

In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.

8 0
3 years ago
​Billy's Hamburger Barn has a single​ drive-up window.​ Currently, there is one attendant at the window who takes the order ​(20
Umnica [9.8K]

Answer:

The map of the current process is found in the attached

The minimum cycle time is 1 min 40 seconds

The longest cycle time is 2 min 35 seconds

The new minimum cycle is 1 min 15 seconds

The new longest cycle time is  2 mins

The potential problem that could surface from splitting the process is that once the customer has finished paying the customer has to wait for about 30 to 55 seconds before the second attendant finishes with packaging,hence ,a queue would likely be formed awaiting the second attendant.

The problem could be solved by ensuring the taking money and packaging takes the same time.

Explanation:

Minimum cycle time=20+55+25=100 seconds=1 minute 40 seconds

The longest cycle time=30+90+35=155 seconds=2 min 35 seconds

The new minimum cycle time=20+55=75 seconds=1 min 15 seconds

Taking customer's money also happened in the first 35 seconds of the 55 seconds above.

The new longest cycle time=30+90=120 seconds=2 mins

Download xlsx
6 0
3 years ago
The rate of change is how fast the data is changing.<br><br><br> True<br><br> False
Tasya [4]

Answer:

true

Explanation:

i got it right edg 2020

8 0
3 years ago
Read 2 more answers
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