Preparing closing entries, which involves journalizing and uploading the entries to the ledger, is the eighth phase in the accounting cycle. During closure, there are four entries. To the Income Summary account, the initial entry cancels revenue accounts.
<h3>What order should the steps for closing an account be taken in?</h3>
Following is the basic order of closing entries: Clear the balances in the revenue accounts by debiting each revenue account and crediting the income summary account. To eliminate the balances in all expenditure accounts, credit all expense, accounts and debit the revenue summary account.
A journal entry debiting all revenue accounts and crediting the income summary is used to accomplish this. The same procedure is then used to calculate expenditures. Crediting the expense accounts and debiting the income summaries closes out all expenditures.
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Answer:
Ben would pay more in taxes.
Explanation:
A progressive income tax increases the tax rate as the taxpayer earns more money.
In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.
Answer:
A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $100,000 x 5% = $5,000
As Allowance for Doubtful Accounts already have credit balance of $2,000, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,000 at the year end.
Adjustment Value = $5,000 - $2,000 = $3,000
Answer: II and III
Explanation:
From the question, we are informed that a customer has a fully paid options position and is long marginable stock and that subsequently he receives a margin call on his long stock position.
The statements that are true are that the customer cannot borrow against the long options contracts to satisfy the margin call and the long option contracts have a loan value of 0%.
Therefore, option C is the right answer.
Answer:
True
Explanation:
The deflation arise when there is a decline in the general level of the price in the overall economy. It could be said as a negative rate of inflation
On the other hand, the disinflation arise when the inflation rate is the decline over time but it would remain positive
Therefore the given statement is true
hence, the same is to be considered
