Goods and services are purchased by businesses as well as by individuals. O a. True O b. False

A company paid Jen Rogers, its sole stockholder, a total of $25,000 in dividends during the current year. The entry needed to cl

sergiy2304 [10]

Debit Income Summary and credit Dividends for $25,000.

Answer: Option 5.

<u>Explanation:</u>

The balancing account of the company or an organisation is where the entries of the company are made and recorded so that at then end of the year the financial position of the company becomes clear to the stake holders of the company.

It is a double entry book keeping record where single entry is made on two sides of the book, the debit side and the credit side. This makes the book in balance for every entry. Entry on the debit and the credit side is made with the same amount to maintain the balance.

7 0

3 years ago

Purple Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000

Sloan [31]

Answer:

The basic earnings per share is $4.15

Explanation:

Earning Per Share : Earning Per share shows a ratio between net income and weighted average outstanding shares.

In mathematically,

Earning Per Share = Net income ÷ weighted average outstanding shares

where,

Net income = $269,915

And, On Jan 1, 2018 the share is 50,000 whereas on April, 2018 the shares is 20,000. But we have to calculated for the December period. From April to December there are 9 months.

So, April 2018 shares = 20,000 × 9 ÷ 12 months = 15,000 shares

Hence, total weighted average outstanding shares is

= 50,000 +15,000

= 65,000 shares

Now, apply the above formula for computation

= $269,915 ÷ 65,000 shares

= $4.15 per share

Thus, the basic earnings per share is $4.15

5 0

2 years ago

Direct labor and overhead costs incurred to change raw materials into finished products are known as

san4es73 [151]

Answer:

conversion costs

Explanation:

5 0

2 years ago

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike

ANEK [815]

Quick ratio is 1.47.

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.

Gross Profit 72000 67000

Operating expenses and interest expense 56000 53000,

Pretax Income 2200014000

Income Tax 3000 4000

Net Income 14000 10000

Balance sheet Year? Year

cash 4000 7000

Accounts Receive ab 114000 18000

Taventory 40000 34000,

Property & Equipment 45000 36000

Total Assets 302000 97000

Current Liabilities ‘i6000 4.7000

Long term Liabilities 5000 45000

Common stock 30000 30000

Retained Earnings 1120005000

Total Liabilities & Stock holders equity 10300037000,

L. Current Ratio = Current Assets / Current Liabilities

Year? Year

Current Ratio 36347

2.Quick Ratio

‘Current Assets - Inventory / Current Liabilities

Year? Year

Quick Ratio is 1.47

2.Profit Margin = Net profit /Sales

Year? Year

Profit Margin 737% 5.99%

Learn more about quick Ratio here

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4 0

2 years ago

Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt

Andreyy89

Answer:

19.64%

Explanation:

The return on equity shall be determined through following mentioned formula:

Return on equity=Net profit/Equity

In the given question

Net profit=9.68%*$807,200=$78,136.96

Equity=Assets-Total Debt

=$1,105,100-64%($1,105,100)

=$397,836

Return on Equity=$78,136.96/$397,836

=19.64%

3 0

3 years ago

Goods and services are purchased by businesses as well as by individuals. O a. True O b. False​

Goods and services are purchased by businesses as well as by individuals. O a. True O b. False