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mr Goodwill [35]
3 years ago
9

Assume the account number for income summary is 901.2

Business
1 answer:
kipiarov [429]3 years ago
3 0

Answer and Explanation:

The closing entries are shown below

a. Service revenue Dr $44,000

       To Income summary $44,000

(being the service account is closed)

b. Income summary Dr $33,100

        To Depreciation expense - equipment $3,000

        To Salaries expense $22,000

        To Insurance expense $2,500

        To Rent supplies $3,400

       To Supplies expense $2,200

(being the expenses are closed)

c. Income summary $10,900

         To C capital $10,900

(Being the income summary to capital is recorded)

4. C capital Dr $7,000

        To C withdrawals $7,000

(Being withdrawals of C capital is recorded)

The post closing trial balance is presented below;

<u>Particulars            Debit         Credit</u>

Cash                    $19,000

Supplies             $13,000

Prepaid insurance $3,000

Equipment           $24,000

Accumulated

depreciation                        $7,500

Capital

($47,600 + $10,900 - $7,000)  $51,500

<u>Total                $59,000       $59,000</u>

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Explain the equation for the income statement. What are the three major items reported on the income statement?
Sergio039 [100]

The equation for the income statement is Revenues - Cost of goods = Net income. The three major items reported on the income statement are net income, gross profits, and operating income.

The income statement is a statement of the profits and losses of a firm. It consists of three income statements. The Net income is derived by deducting the expenses of the firm from its revenues (Net income = Revenue - Expenses). It may also be calculated by adding the operating income with the non-operating items.

Gross profit is arrived at by subtracting the expenditure made on the products that were sold from the revenue of a firm. The Operating income is the result of subtracting the operating expenses from the gross profit.

To learn more about income statement : brainly.com/question/14308954

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4 0
1 year ago
Jon is the marketing head at Avion International, an import-export agency. His calendar is filled with: meetings with heads of t
HACTEHA [7]

Answer: Option D

Explanation: As per the job characteristics theory an employee who is performing a job which have a high variety of task to complete and require some special skills will feel more motivated and satisfied than others.

In the given case, Jon has a feeling that his job makes him to perform new task everyday, that's why, he never gets board with his job.

Hence from the above we can conclude that the correct option is D.

5 0
3 years ago
Read the following email,which Jim sent to his team. Then choose the answer below that best explains what is wrong with the emai
Ivenika [448]

Answer:

The answer is C.

7 0
3 years ago
Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acqui
Anni [7]

Answer:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

Explanation:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

8 0
3 years ago
When reviewing the balance sheet for Portable Pet Care, Inc., a mobile small animal care business, Ricky noted the following inf
mash [69]

Answer:

The net worth (owners' equity) for this business is $2.2 million

Explanation:

Net worth: It is also known as owner's equity which is a difference between total assets and total assets.

In this question, we use the accounting equation which is used to balance the debit and credit side of the balance sheet items.

So, the accounting equation is

Total Assets = Total Liabilities + Owner's Equity

where,

Company assets are $3.5 million

And, liabilities is $1.3 million

Now, apply the above equation to find out the value of the owner's equity

So, owner equity would be equals to

= $3.5 million - $1.3 million

= $2.2 million

Hence,  the net worth (owners' equity) for this business is $2.2 million

3 0
3 years ago
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