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The Retained earnings account has a credit balance of $34,000 before closing entries are made. If total revenues for the period

nevsk [136]

Answer:

The ending balance of retained earnings account is $43,400.

Explanation:

Simply put, retained earnings are an amount of net income left after payment of dividends to shareholders. This amount accumulates over time period as the company retains profit for its operations. Usually, it is arrived at using the formula below:

Retained earnings = Opening balance + Net income (or loss) - Cash dividends - Stock dividends

At the instance of the question, retained earnings = $34,000 + $27,400 ($105,200 - $77,800) - $18,000 = $43,400.

4 0

3 years ago

Read 2 more answers

During 2019, half of the treasury stock was resold for $180,000; net income was $510,000; cash dividends declared were $1,320,00

Sliva [168]

Answer:

$5,790,000 using opening balance assumption which was not provided in the question

Explanation:

Shareholders Equity 2019= Opening Shareholders Equity + Resold Treasury Stock + Net income - Cash Dividends Paid

Here

Resold Treasury Stock is $180,000

Net income $510,000

Cash Dividends Paid $1,320,000

Opening Shareholders Equity is missing so we assume the following remainder part as I didn't find the remainder part anywhere:

As of Dec. 31, 2018, Warner Corporation reported the following: Dividends payable- 20,000; treasury stock- 600,000; paid-in capital-share repurchase- 20,000; other paid-in capital accounts- 4,000,000; retained earnings- 3,000,000.

So

Opening Shareholder Equity = Opening paid-in capital accounts + Retained earnings - Treasury Stock + Paid in Capital share repurchases

Opening Shareholder Equity = $4,000,000 + $3,000,000 - $600,000 + 20,000 = $6,420,000

By putting values, we have:

Shareholders Equity = $6,420,000 + $180,000 + $510,000 - $1,320,000

Shareholders Equity = $5790,000

4 0

3 years ago

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 20

Zarrin [17]

Answer:

$1,247.12

Explanation:

For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below

Given that,

Future value = $1,000

Rate of interest = 4.151% ÷ 2 = 2.076%

NPER = 17 years × 2 = 34 years

The 20 years come from May 2019 to May 2036

PMT = $1,000 × 6.193% ÷ 2 = $30.965

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value or the ask price is $1,247.12

8 0

3 years ago

An economics professor is discussing a measure of inflation over time based on a basket of goods comprised of all the components

Jlenok [28]

Answer:

GDP Price Deflator

Explanation:

GDP price deflator is a measure of the general changes in the price level of all the finished goods and services in a country in a period. While GDP is a measure of the total output in an economy, the GDP price deflator shows the extent to which prices changed in a period. In proving the effects of price changes, the GDP deflator identifies a base year then compares the current prices to base year prices.

The GDP price deflator allows economists to compare the GDP of different periods while considering the inflation between those periods. It does this by comparing the nominal GDP with the real GDP.

3 0

3 years ago

Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing depar

Svetllana [295]

Answer:

Ice Cream Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to: __________

= $17.97.

Explanation:

a) Data and Calculations:

Units Materials Conversion

Beginning work in process inventory 900 $13,000 $5,100

Degree of completion 75% 20%

Units started into production 9,600

Total units in production 10,500

Units completed and transferred 8,500 100% 100%

Ending work in process inventory 2,000 90% 30%

Units Materials Conversion

Beginning work in process inventory 900 $13,000 $5,100

Costs added during the month $172,100 $242,100

Total production costs for the month $185,100 $247,200

Equivalent units of production:

Units Materials Conversion

Units completed and transferred 8,500 8,500 (100%) 8,500 (100%)

Ending work in process inventory 2,000 1,800 (90%) 600 (30%)

Total equivalent units 10,300 9,100

Cost per equivalent unit:

Materials Conversion

Total production costs $185,100 $247,200

Total equivalent units 10,300 9,100

Cost per equivalent unit $17.97 $27.16

6 0

2 years ago