Answer:
The net income will be "$36,250".
Explanation:
The given values are:
Administrative expenses
= $15,000
Fixed overhead costs
= $30,000
According to the question:
The sales will be:
= 
= 
The production cost of the variable will be:
= 
= 
Variable selling will be:
= 
= 
The net income will be:
⇒ 
On substituting the values, we get
⇒ 
⇒
($)
Based on the beginning retained earnings balance and the net income as well as dividends, the retained earnings balance will be $1,585,500.
<h3>How much are retained earnings on Dec. 31?</h3>
This can be found as:
= Beginning retained earnings + Net income + dividends paid
Solving gives:
= 1,250,000 + 287,500 + 48,000
= $1,585,500
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Answer:
Partnership Business
Explanation:
Partnership business is a business enterprise owned, managed and financed by a minimum of two individuals for the purpose of making profit.
Grub Galore is owned by Bob and Rob which makes it a partnership business.
Advantages
1) Profit is shared by partners only.
2) It is financed by more than one person which makes capital more available.
3) Decision making is faster company to limited liability companies
Disadvantages
1) Loss is shared among partners only.
2) Death of one partner might lead to the end of the business.
3) Disagreement between partners might end the business.
Answer and Explanation:
The journal entry to record the given transaction is as follows
Retained earning Dr (0.30 million × $54) $16.2 million
To Common stock (0.30 million × $1) $0.3 million
To Additional paid in capital in excess of par (0.30 million × $53) $15.9 million
(Being the stock dividend is declared)
The computation of the shares after declaring the dividend is
= 30 million × 1%
= 0.30 million