Answer:
b. a debit to the Income Summary and a credit to the Revenues account for $75,000
Explanation:
As we know that
The closing entries are shown below:
1. Sales Revenue A/c Dr $75,000
To Income Summary A/c $75,000
(Being revenue account closed)
2. Income summary A/c Dr $62,000
To Expenses A/c $62,000
(Being the expenses accounts are closed)
3. Income summary A/c Dr $13,000 ($75,000 - $62,000)
To Owner's capital $13,000
(Being the difference is credited to owners capital)
Answer:
WACC = 0.08085 or 8.085% rounded off to 8.09%
Option c is the correct answer.
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- D, P and E represents debt, preferred stock and common equity respectively
- r represents the cost of each component
We first need to calculate the weight of each stock. We know the basic accounting equation is,
Assets = Debt + Equity
We know the debt to equity ratio is 3. Then total assets will be,
Assets = 3 + 1
Assets = 4
Using the CAPM equation, we can calculate the cost of equity.
r = risk free rate + Beta * Market risk premium
r = 0.03 + 1.5 * 0.09
r = 0.165 or 16.5%
WACC = 3/4 * 0.08 * (1 - 0.34) + 1/4 * 0.165
WACC = 0.08085 or 8.085% rounded off to 8.09%
Answer:
Item a
Debit :
Credit :
Item b
Debit :
Credit :
Item c
Debit :
Credit :
Item d
Debit :
Credit :
Item e
Debit :
Credit :
Item f
Debit :
Credit :
Explanation:
If there is no immediate payment of cash, raise a liability - accounts payable
The equity for the provided information as of December 31 is $ 311,000.
As we know Liabilities are the amounts to others whereas Assets are the items controlled and owned by the particular company and Equity refers to accumulated earnings and contributed capital.
So the basic equation we refer to for calculating the equity is
Assets = Liabilities + Equity
As we are provided that,
liabilities $ 148,000
cash 64,000
equipment 213,000
buildings 182,000
So,
the total assets ( sum of cash, equipment, and buildings ) are $459000.
Referring the equation, the equity = Assets - liabilities
= 4590000-148000
= 3110000
The desired equity is $311,000.
To know more about equity, asset and liabilities refer to the link brainly.com/question/15572405?referrer=searchResults
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