Answer:
debit Sales $15,000; debit Purchases Returns and Allowances $200 and credit Income Summary for $15,200
Explanation:
Based on the information given the CLOSING ENTRY that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances are:
Debit Sales $15,000
Debit Purchases Returns and Allowances $200 Credit Income Summary for $15,200
($15,000+$200)
(To close revenue accounts and income statement accounts)
Answer:
a. Daniel must recognize $300 interest income for 2017 and a $200 gain on the sale of the bond in 2018
Explanation:
Since the interest was collected of $600 and the accrued interest is $300, so the remaining amount $300 reflect the interest income
And, the sale value of the bond is $10,200 without considering the interest collection and its purchase price without considering the accrued interest is $10,000. So, after comparing the purchase price and the sale price the gain of $200 would be determined
$10,200 - $10,000 = $200
Sorry but what is the question?
Answer: B. the social benefit from consuming the good to be greater than the private benefit.
Explanation:
A POSITIVE EXTERNALITY is one where the benefits are enjoyed by a third party as a result of an economic transaction.
Even though the third parties can be considered to be freeloaders, this externality is encouraged because it has such a larger social benefit which surpasses even private benefit.
For example, a student graduating from a university with skills they learnt there and contributing to society.
Answer:
The expanding accounting equation is:
Assets = Liabilities + Stockholders Equity
[Common Stock + Retained Earnings]
(Revenues - Expenses - Dividends)
Now, we replace the amounts in the formula
$84,325 = $2,560 + X
[ X + R ]
($54,780 - $28,125 - $13,450)
$84,325 = $2,560 + X
[ X + R ]
($54,780 - $28,125 - $13,450)
$84,325 = $2,560 + X
[ X + $13,205 ]
$84,325 = $2,560 + X
[ 68,560 + $13,205 ]
$84,325 = $2,560 + $81,765
Both sides are now equal to $84,325
Thus, Common Stock = $68,560