Answer:
The balance in stockholders' equity at the end of year 2 is $31,000
Explanation:
For computing the balance in stockholder equity at the end of year 2, first, we have to compute the balance for year 1 which is shown below:
Year 1 equity balance = Issue of stock + Net income
= $20,000 + $5,000
= $25,000
Now, year 2 balance would equal to
= Year 1 balance + Net income - Dividend paid
= $25,000 + $10,000 - $4,000
= $31,000
Hence, the balance in stockholders' equity at the end of year 2 is $31,000
Answer:
Explanation:
The journal entry is shown below:
Building A/c Dr $312,276
Land A/c Dr $276,924
To Cash A/c $61,900
To Notes payable A/c $527,300
(Being the purchase of building and land for cash and note payable is recorded)
The computation of the notes payable is shown below:
= Total purchase value - cash paid
= $589,200 - $61,900
= $527,300
Answer:
The reason for a civil law suit can be almost any harm or wrongful act done to an individual or business, by another person or business entity. For example, a breach of most contracts can be considered as the reason for a civil law suit. Also, car accidents and misfortunes take a big share in civil law suits.
If a defendant loses in a civil law suit, he usually pays in dollars, as reimbursement for the harm done. Rarely, this results in actual time in prison (behind bars).
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Usually, when harm or potential misunderstanding includes someone you know or work with, the first step is to try to settle things without court. Legal costs can become overwhelming, especially if the problem could be solved beforehand.
Also, the social and relationship aspect is extremely important. If you take a case to the court (especially if the reason is minor and could be potentially settled without the aid of legal entities), the relationship between you and the defendant will always have a hostile notion to it. That is a factor to take into consideration if the defendant is an acquaintance or co-worker.
Answer:
Income summary has a $208,630 credit balance before being closed
Explanation:
The closing entries should be:
Dr Service revenue 257,000
Cr Income summary 257,000
Dr Income summary 48,370
Cr Rent expense 10,700
Cr Utility expense 4,200
Cr Salary expense 19,200
Cr Depreciation expense 9,700
Cr Advertising expense 4,570
Income summary
Debit Credit
<u>18,370 257,000</u>
208,630
In order to close income summary:
Dr Income summary 208,630
Cr Retained earnings 208,630
If you want to close dividends:
Dr Retained earnings 18,700
Cr Dividends 18,700
Solution :
Assets = Liabilities + Paid in capital + retained earnings
1. $ 300,000 $ 300,000
2. $ 30,000 $ 30,000
3. $ 90,000 $ 90,000
4. $ 50,000 $ 50,000
5. $ 5,000 $ 5,000
6. $ 6,000 $ 6,000
7. $ 70,000 $ 70,000
8. --
9. $ 1,000 $ 1,000
Point 4 -- the accounts receivable will increase by $ 120,000 due to the credit sales and the cost of goods sold.
Point 6 -- Adjustments entry at the year end for 3 months from January to March 2022 should be reduced from both assets and retained earnings and the adjusted amount would be $ 4500.
Point 8 -- No impact as the cash is collected against the account receivable and both are assets.
