Which of the following statements are TRUE?

Identify which accounts should be closed on May 31.

vaieri [72.5K]

Answer:

Cash ___________________ Not Closed

Supplies _________________Not Closed

Prepaid Insurance _________ Not Closed

Land ___________________Not Closed

Buildings ________________Not Closed

Equipment _______________Not Closed

Accounts Payable _________ Not Closed

Unearned Rent Revenue ____Not Closed

Mortgage Payable _________Not Closed

Common Stock ___________Not Closed

Rent Revenue ____________Closed

Salaries and Wages Expense_Closed

Utilities Expense __________ Closed

Advertising Expense _______ Closed

Interest Expense __________ Closed

Insurance Expense _________Closed

Supplies Expense __________Closed

Depreciation Expense _______Closed

Explanation:

In accounting, there are two types of accounts

Temporary
Permanent

Temporary

Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.

Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.

In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.

Rent Revenue

Salaries and Wages Expense

Utilities Expense

Advertising Expense

Interest Expense

Insurance Expense

Supplies Expense

Depreciation Expense

Permanent Accounts

Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.

Assets, Equity, and Liabilities accounts are permanent accounts.

In this question following accounts are permanent accounts

Cash

Supplies

Prepaid Insurance

Land

Buildings

Equipment

Accounts Payable

Unearned Rent Revenue

Mortgage Payable

Common Stock

5 0

2 years ago

Read 2 more answers

Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000,

Kobotan [32]

Answer:

b) $113,000

Explanation:

For the computation of net income under absorption costing first we need to follow some steps which is shown below:-

variable overhead per unit = $105,000 ÷ 35,000

= $3 per unit

The Variable cost of production per unit

Particulars Amount

Direct material $19.00

Direct labor $21.00

Variable overhead $3.00

Variable cost of production

per unit $43.00

Cost per unit of finished goods under absorption costing

Particulars Amount

Total direct material cost $665,000

($19 × 35000)

Total direct labor $735,000

($21 × 35000)

Total variable overhead $105,000

Total fixed overhead $175,000

Total $1,680,000

Units in finished goods = Number of units produced - units sold

= 35,000 - 21,000

= 14,000

Cost of finished goods under variable costing

= Variable cost of production per unit × Number of units in finished goods

= $43 × 14,000

= $602,000

Cost of goods sold

= Production cost - Finished goods cost

= $1,680,000 - $602,000

= $1,078,000

Income statement under absorption costing

Particulars Amount

Sales revenue $1,491,000

($71 × 21,000)

Less: cost of goods sold -$1,078,000

Gross Profit $413,000

Less : operating expenses -$300,000

Net operating income $113,000

3 0

3 years ago

Raw Materials Inventory, beginning to balance $36,000

lesya692 [45]

Answer:

1. Journal Entry Debit Credit

Raw materials inventory $73,400

($72,000 + $1,400)

Accounts payable $73,400

(Being raw materials purchase on credit)

2. Journal Entry Debit Credit

Work in process $64,300

($64,000 + $300)

Raw materials inventory $64,300

Raw Material Inventory Account

Beginning balance $36,000 | Work in process $64,300

Purchase $73,400 |

| Ending balance $45,100

| ($36,000 + $73,400 - $64,300)

3 0

3 years ago

Performed services for 27600 on account

choli [55]

?? What does this mean

7 0

3 years ago

Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of

zimovet [89]

Answer:

Correct answer is (c). bring civil suits under the Alien Tort Claims Act

Explanation:

Alien mean foreign national.

Alien Tort Claims Act (ATCA), also known as Alien Tort Statute, originated from U.S. under a provision of the Judiciary Act of 1789. The law grant U.S. federal courts original jurisdiction over any civil action brought by an alien for a tort in violation of international law or a U.S. treaty.

3 0

3 years ago