All categories

3 years ago

Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014.

Business

1 answer:

Stells [14]3 years ago

6 0

Answer:

1. Dr Sales Revenue $411,940

Cr Income Summary $411,940

2. Dr Income summary $341,540

Cr Cost of Goods Sold $225,870

Cr Sales Returns and Allowances $13,650

Cr Sales Discounts $15,290

Cr Selling Expenses $17,400

Cr Administrative Expenses $39,150

Cr Income Tax Expense $30,180

3. Dr Income summary $70,400

Cr Retained earning $70,400

4. Dr Retained earnings $19,080

Cr Dividend $19,080

Explanation:

Preparation of closing entries for Homer Winslow Co. on December 31, 2014

1. Dr Sales Revenue $411,940

Cr Income Summary $411,940

(Being To close expense accounts)

2. Dr Income summary $341,540

($225,870+$13,650+$15,290+$17,400+$39,150+$30,180)

Cr Cost of Goods Sold $225,870

Cr Sales Returns and Allowances $13,650

Cr Sales Discounts $15,290

Cr Selling Expenses $17,400

Cr Administrative Expenses $39,150

Cr Income Tax Expense $30,180

(Being To close expense accounts)

3. Dr Income summary $70,400

( $411,940 -$341,540 )

Cr Retained earning $70,400

(Being To close net income)

4. Dr Retained earnings $19,080

Cr Dividend $19,080

(Being To close dividends to retained earnings)

You might be interested in

You have $10,000 to invest. You want to purchase shares of Alaska Air at $42.56, Best Buy at $51.42, and Ford Motor at $8.56. Ho

abruzzese [7]

Answer:

Alaska = 46.99 units

Best buy = 58.34 units

Ford Motor = 584.11 units

Explanation:

<em>To determine the unit of each class of stock to purchase, we wll multiply each of the percentages by the total fund to be arrive the proportion of fund to be invested in each class. </em>

<em>Further more, we will divide the allocated amount by the share price per unit</em>

Shares to be purchased to have the given proportion would be '

Alaska (20%) =(20%× 10,000)/42.56= 46.99 units

Best buy (30%) = (30% × 10,000)/ 51.42 = 58.34 units

Ford Motor (50%) = (50% × 10,000)/ 8.56 = 584.11 units

3 0

3 years ago

The following events occurred for Favata Company: a. Received $13,000 cash from owners and issued stock to them. b. Borrowed $10

Vladimir [108]

Answer and Explanation:

The indication of the account, amount and the direction of the effect are as follows

As we know that

Accounting equation is

Total assets = Total liabilities + stockholder equity

Based on this, the indication and the direction aare as follows

Assets = Liabilities + Stockholders' Equity

A) $13,000 = 0 + $13,000

It increased both the assets and the stockholder equity i.e capital

B) $10,000 = $10,000 + 0

It increased both the assets and the liabilities

C) $1,100 = $1,100 + 0

It increased both the assets and the liabilities

D) +$18,000 -$1,600 = $16,400 + 0

It increased the land by $18,000 and decreased the cash by $1,600 and at the same time it increased the liabilities by $16,400

E) +$6,000 -$1,600 = $4,400 + 0

It increased the equipment by $6,000 and decreased the cash by $1,600 and at the same time it also increased the liabilities by $4,400

Total $44,900 = $31,900 + $13,000

4 0

3 years ago

A company has positive cash flows from operating activities, negative cash flows from capital expenditures, and negative cash fl

Shalnov [3]

Growth stage. Profits from the company should be able to comfortably cover overhead and pay employees at this point. Sales are probably rising, and profit margins have risen once capital investments and loans have been repaid by the business.

<h3>What these terms means?</h3><h3>A) Positive cash flow</h3><h3>B) Negative cash flow</h3><h3>C) Dividends</h3>

The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow.
Money spent and money received represent inflows and outflows, respectively. Fundamentally, a company's capacity to produce positive cash flows, or more specifically, its capacity to maximize long-term free cash flow, determines its ability to create value for shareholders (FCF).
When a company has positive cash flow, its net balance on its cash flow statement for that particular period is higher than zero. In other words, the net result of all cash inflows and outflows over this period is positive rather than negative, and as a result, the company's cash reserves are increasing.
Because a capital expenditure involves money leaving your company, it has a negative value in comparison to income or revenue. Because they are being deducted from your balance sheet or show as a negative capital expenditure on cash flow statements, capital expenditures are negative.
a sum of money that is regularly paid by a business to its shareholders out of its profits (typically once per year) (or reserves) is called Dividends.

To know more about cash flows check this out:https://brainly.com/question/18301012

#SPJ4

8 0

1 year ago

10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what am

xz_007 [3.2K]

Answer:

the cost that allocated to the start up business is $61,600

Explanation:

The computation of the amount of the cost that allocated to the start up business is given below:

= Manufacturing facility costing × maintaining the overall cost percentage

= $560,000 × 0.11

= $61,600

Hence, the cost that allocated to the start up business is $61,600

We simply applied the above formula so that the amount could come

3 0

3 years ago

Complete the following sentence. When the long run average cost (LRAC) curve has a positive slope, it implies there are:

Andreas93 [3]

Answer:

It implies there are diseconomies of scale.

Explanation:

It implies there are diseconomies of scale in the industry

Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.

When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.

While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.

4 0

3 years ago