Answer:
b. Dec. 31
Income Summary 925
Fees Earned 750
Rent Revenue 175
Explanation:
At the end of each accounting period, the elements of the income statements which are the revenues earned and the expenses incurred are usually closed to the income summary account.
The revenue earned which is normally a credit balance is closed by debiting the account and crediting the income summary. The expenses are closed by crediting the account and debiting the income summary.
Hence if Fees Earned, $750, and Rent Revenue, $175,
Total revenue = $750 + $175
= $925
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Kei·ret·su
kāˈretso͞o/
noun
(in Japan) a conglomeration of businesses linked together by cross-shareholdings to form a robust corporate structure.
Since the coffee beans arrived on September 2 instead of on
September 1, LaTisha's best defense would be breach of a legally binding
contract by Marco. Marco failed without, any legal excuse, to deliver the
products as promised. Marco violated the legal agreement between the two
parties since he did not perform his obligation.
Given:
Net sales: 600,000
Accounts receivable: 750,000 debit
allowance for doubtful accounts: 1,500 debit
3% of the net sales will prove uncollectible
600,000 x 3% = 18,000
Net Realizable Value of the receivables to be reported on the financial statements at December 31,2014 is 733,500.
750,000 - 18,000 + 1,500 = 733,500
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