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3 years ago

The total debits in the After-Closing Trial Balance will equal:______

Business

1 answer:

Mnenie [13.5K]3 years ago

7 0

Complete Question:

Shown below is a trial balance for Novelty Toys, Inc., on December 31,after adjusting entries:

Novelty Toys, Inc.

Trial Balance December 31

Cash $7,750

Accounts Receivable $6,375

Office Equipment $11,250

Accumulated Depreciation $3,000

Accounts Payable $3,875

Capital Stock $11,250

Retained Earnings $0

Dividends $3,750

Fees Earned $22,750

Salaries Expense $8,000

Advertising Expense $1,625

Depreciation Expense $2,125

$40,875 $40,875

The total debits in the After-Closing Trial Balance will equal:

Select one:

a. $25,375.

b. $29,125.

c. $40,875.

d. $18,125.

Answer:

$25,375

Explanation:

The After-Closing Trial Balance is prepared once the closing entries are posted. This results in closing of expense and income accounts for the year and the resulting balance taken forward to retained earnings. This means that After-Closing Trial Balance would contain only permanent general accounts which are balance sheet items. In the given scenario, the balance sheet debit balances are as under:

Cash $7,750

Accounts Receivable $6,375

Office Equipment $11,250

Total Debit Balance $25,375

Hence the option A is correct.

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Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year

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Answer: $107,500

Explanation:

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The gain he received was:

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3 years ago

A T-bill that is 290 days from maturity is selling for $96,040. The T-bill has a face value of $100,000.

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Answer: a 0.049, 0.05 and 0.05 or 5%

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BEY= [(100000 - 96040)/96040] * 365/290

BEY = 0.05

iii EAR = [(1+BEY/n)exp n - 1)

EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]

EAR = [(1 + 0.05/1.26) exp (1.26) - 1

EAR = (1.04) exp (1.26) - 1

EAR = 0.05 or 5%

The same formula are applied for the B part

Discount yield = [(100000-96040)/100000] * 360/365

Discount yield = 0.0396 * 0.986

= 0.039

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BEY = 0.041 × 1

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