Answer:
The correct options are:
A. Debit to Factory Overhead
D. Credit to Factory Utilities Payable
Explanation:
The debit entry of the use of utilities in a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.
However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to the supplier of the service being enjoyed by the factory in order to run on daily basis
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For this problem, we are required to calculate the net operating income.
In order to answer the question, we will first calculate the impact of the changes on the Hardware department. Then we will add the remaining fixed costs that are currently charged to Linens that will continue.
To calculate net operating income, subtract operating expenses from the revenue generated by a property. Revenue from real Hardware department estate includes rental income, parking fees, service changes, vending machines, laundry machines, and so on.
Net income, also known as the bottom line, Hardware department indicates a business's profitability. It shows how much profit is left from revenue after accounting for expenses and liabilities. Net income is profit that can be distributed to business owners or shareholders or invested in business growth.
A corporation's positive net income causes an increase in the retained earnings, which is part of stockholders' equity. A net loss will cause a decrease in retained earnings and stockholders' equity.
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Answer:
$230,400
Explanation:
The computation of the ending retained earning balance is shown below:
The ending balance of retained earning = Opening balance of retained earnings + net income - net loss - cash dividend paid
= $294000 - $27,600 - $36,000
= $230,400
We simply deduct the net income and the dividend from the beginning balance of retained earning so that the correct balance could come.