A test balance is used to detect any calculation error that may have occurred within the accounting system. For this, it is sought to verify if the total debits and the total credits are equal, for this the balance of all accounting books is compiled in column totals of both debit and credit. A company usually prepares a trial balance periodically, usually at the end of each reporting period.

In this case, to carry out the trial balance, you must first clarify the name of the company, the title of the trial balance and the date on which the trial balance is prepared, then proceed to list the ledger accounts and enter the debit and credit balances in the respective columns, then the columns are totalized and finally it is verified that the credit totals are equal to the debit totals

Answer

The correct order of the steps is (3), (2), (4) and (1)

7 0

3 years ago

When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?

geniusboy [140]

Answer:

c. a significant amount of market power

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

3 0

3 years ago

Selected transactions from the journal of Monty Corp., are presented below:

iogann1982 [59]

Answer:

Aug. 1 Cash 37,800

Common Stock 37,800 (Investment of cash for stock)

Dr.Cash 37,800

Cr. Common stock 37,800

10 Cash 17,010

Service Revenue 17,010 (Received cash for services performed)

Dr. Cash 17010

Cr. Service Revenue 17010

12 Equipment 31,500

Cash 5,040

Notes Payable 26,460 (Purchased office equipment for cash and notes payable)

Dr. Office Equipment 31500

Cr. Cash 5040

Cr. Account Payable 26460

25 Account Receivable 10,080

Service Revenue 10,080 (Billed clients for services performed)

Dr. Account Receivable 10080

Cr. Sales 10080

31 Cash 5,544

Accounts Receivable 5,544 (Receipt of cash on account)

Dr. Cash 5544

Cr. Account Receivable 5544

T account are prepared in the attached MS Excel File, Please find that.

Download xlsx

7 0

3 years ago

Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates it's fixed cost to be 550.00 and i

Citrus2011 [14]

Answer:

a. Breakeven in units is 2200 units

b. Break even in dollars is $1650

c. The answer is A. make a loss

Explanation:

The breakeven points in units is the point or number of units where the total revenue equals total cost and there is no profit or no loss. Below the breakeven quantity, the firm is operating at a loss and above it, it is operating at a profit.

The break even point in unit can be calculated by dividing the fixed costs by the contribution per unit. The formula for break even point in units is:

Breakeven in units = Fixed Costs / contribution per unit

Contribtuion per unit = Selling price per unit - Variable cost per unit

Break even in units = 550 / (0.75 - 0.5) = 2200 units/scissors

The break even point in dollars is the value of sales at which the company will breakeven and will make no profit and no loss. The break even point in dollars can be calculated by multiplying the break even point in units by the selling price per unit. Alternatively, it can also be calculated by dividing the fixed costs by contribution margin ratio.

Contribution margin ratio = (Selling price - variable cost) / selling price

CM ratio = (0.75 - 0.5) / 0.75 = 0.3333 or 33.33%

Breakeven in dollars = 2200 * 0.75 = $1650

Break even in dollars = 550 / ((0.75-0.5) / 0.75) = $1650

As 600 units is less than the breakeven number of units (2200 units) , it will make a loss.

5 0

3 years ago