If after preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $25,000. the entry to close the income summary account will be: a debit of $25,000 to owner capital.
<h3>Income summary</h3>
The debit balance of the amount of $25,000 in the income summary indicate that the company expenses is higher than the revenues generated by the company by $25,000.
Based on this the loss incurred will be taken out of the company owner's equity account by reducing it through a debit entry.
Therefore the income summary account has a debit balance of $25,000. the entry to close the income summary account will be: a debit of $25,000 to owner capital.
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Answer:
$ 44000
Explanation:
Given:
Actual overhead manufacturing cost, Ac = $ 352000
Actual direct labor hours, Ah = 56000
Estimated manufacturing overhead cost, Ec = $ 330000
Estimated direct labor hour, Eh = 60000
Now,
Predetermined Overhead Rate = Ec/Eh
on substituting the values in the above formula we get
= $ 330000/60000 = 5.5
also,
Underapplied Overhead = Ac + (Ah × Predetermined Overhead Rate)
on substituting the values in the above formula we get
Underapplied Overhead = 352000 - (56000 × 5.5)
or
Underapplied Overhead = $ 44000
Answer:
6%
Explanation:
Current interest rate on one year bond = 5%
Forward interest rate on one year bond = 7%
To Calculate the interest rate on two year bond we use this:
Interest rate = [Current interest rate on one year bond + Forward interest rate on one year bond]/2
Interest rate = [5 + 7]/2 = 12/2 = 6%
Therefore,
The interest rate on two-year bond is equal to 6%.
Answer:
See below
Explanation:
Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.
Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.
