Explanation:
the competition committee of southafrica, set up in the year 1989 by the southafrica government under the competition act to empower to investigate, control and restrict business, abuse of dominant positions and merges in order to achieve equity and efficiency in the southafrica economy.
A constant return of scale indicates that a firm is producing its ______ at a ______ ATC, which also shows that the firm is _______.
Answer:
The question is incomplete, the options are missing. The options are the following:
A) input, constant, lack of competitiveness
B) output, lower, doing well
C) output, constant, doing well
D) output, higher, doing well
E) input, lower, lack of competitiveness
And the correct answer is the option C: output, constant, doing well.
Explanation:
To begin with, in the microeconomics theory when it comes to the term of "constant return of scale" it refers to the situation in where a company is producing its output at a constant average total cost indicating that is doing well due to the fact that the costs are still covered by the earings that the company is having so that means that it could still keep on working for the next period. The term of return of scale focus on the changes donde in the inputs and how that affects the outputs and the earning regarding that base.
A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard deviation of 10. It takes 4 days for the supplier to deliver. The purchasing agent at the restaurant has established a 99.7% service level.
a) The Safety Stock and Reorder Point for the restaurant (in whole numbers). A fast-food restaurant buys hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the constant rate of 100 per day and are purchased at $0.025 per bun. It costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost.
b) How much should be ordered each time to minimize the restaurant’s total annual costs?c) And what is the length of order cycles (i.e. time between orders) in days? Assume the restaurant operates 360 days per year.
Answer:
Thus, from the calculations below;
The safety stock = 55
The reorder point = 695
quantity required to be ordered in order to reduce and minimize total annual cost for the restaurant = 3394 buns
The order cycles length = 34 days
Explanation:
From the given information:
The average demand (d) = 160
The standard deviatiion [tex]\sigma_d[/tex] = 10
Lead time = 4 days
Service level = 99.7% = 0.997
From the Standard Normal Curve; the z value at 99.7% = 2.75
The annual demand (D) = 36000
Ordering cost = $1
Unit purchased Cost = $0.025
The holding cost for the annual inventory = 25% of 0.025 = 0.00625
The reorder point can be determined by using the formula:
[tex]= \bar d \times Lead \ time +z\times \sigma_d \times \sqrt{LT}[/tex]
[tex]\mathbf{ = 160\ \times4+2.75 \times10 \times\sqrt{4}}[/tex]
= 695
The safety stock SS = [tex]z \times \sigma_d \times \sqrt{LT}[/tex]
[tex]= 2.75 \times 10 \times \sqrt{4}[/tex]
= 55
The economic order quality = [tex]\sqrt{2 \times D \times \dfrac{ordering \ cost }{annua l\ holding \ cost}}[/tex]
[tex]= \sqrt{2 \times 36000 \times \dfrac{1 }{0.00625}}[/tex]
=3394.11
The order cycle length = [tex]\dfrac{EOQ}{D}\times 360[/tex]
[tex]= \dfrac{3394.11}{36000}\times 360[/tex]
= 33.94
≅ 34 days
Lewis and Associates has been in the termite inspection and treatment business for five years. The following is a list of accounts for Lewis on June 30, 2017. It reflects the recurring transactions for the month of June but does not reflect any month-end adjustments:
Cash ………………………………………………. $6,200
Accounts Receivable ………………………………10,400
Prepaid Rent ……………………………………….. 4,400
Chemical Inventory ………………………………....9,400
Equipment …………………………………………..18,200
Accumulated Depreciation ………………………….1,050
Accounts Payable ………………………………….. 1,180
Capital Stock ………………………………………....5,000
Retained Earnings ……………………………….. ...25,370
Treatment Revenue ………………………………....40,600
Wages and Salary Expense ………………………. 22,500
Utilities Expense ………………………………….....1,240
Advertising Expense ……………………………….. 860
The following additional information is available:
a. Lewis rents a warehouse with office space and prepays the annual rent of $4,800 on May 1 of each year.
b. The asset account Equipment represents the cost of treatment equipment, which has an estimated useful life of ten years and an estimated salvage value of $200.
c. Chemical inventory on hand equals $1,300.
d. Wages and salaries owed but unpaid to employees at the end of the month amount to $1,080.
e. Lewis accrues income taxes using an estimated tax rate equal to 30% of the income for the month.
Required:
1. For each of the items of additional information, (a) through (e), identify and analyze the necessary adjustment on June 30, 2017.
2. On the basis of the information you have, does Lewis appear to be a profitable business?
Answer:
Lewis and Associates
1. Identification and Analysis of the items of additional information:
a. Rent Expense $400 Prepaid Rent $400
b. Depreciation Expense $150 Accumulated Depreciation $150
c.Cost of Chemical Used $8,100 Chemical Inventory $8,100
d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.
e. Income Tax Expense $1,905 Income Tax Payable $1,905
2. On the basis of the information, Lewis and Associates appears to be a profitable business, making a margin of 11% in after-tax income.
Explanation:
a) Additional Data and Analysis:
a. Rent Expense $400 Prepaid Rent $400
b. Depreciation Expense $150 Accumulated Depreciation $150
c.Cost of Chemical Used $8,100 Chemical Inventory $8,100
d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.
e. Income Tax Expense $1,905 Income Tax Payable $1,905
30% of the income for the month.
Income Statement for the Month Ended June 30
Treatment Revenue $40,600
Cost of Treatment Chemical 8,100
Gross profit $32,500
Expenses:
Wages and Salary $23,500
Utilities 1,240
Advertising 860
Depreciation 150
Rent 400
Total expenses $26,150
Income before taxes $6,350
Income taxes 1,905
Net income $4,445
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.20 to produce. Non-defective sandwiches sell, on the average, for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped.
The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $100,000, $130,000, and $150,000, respectively. Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a .90 chance that 95 out of each 100 sandwiches are non-defective and a .10 chance that 80 out of each 100 sandwiches are non-defective.
The expected profit level of design K1 is $____.
The expected Profit leve of design K2 is___.The expected profit level of design k3 is___.
Answer:
McBurger, Inc.
The expected profit level of design K1 is $_42,500__.
The expected Profit level of design K2 is_19,063__.
The expected profit level of design k3 is_20,625__.
Explanation:
a) Data and Calculations:
Daily production units at a typical McBurger restaurant = 500 sandwiches
Yearly production units =150,000 (500 * 300)
Unit production cost of a sandwich = $1.20
Selling price of non-defective sandwich = $2.50
Design K1 Design K2 Design K3
Calculation of non-defective units:
0.80 * 90/100 * 150,000 108,000
0.20 * 70/100 * 150,000 21,000
0.85 * 90/100 * 150,000 114,750
0.15 * 75/100 * 150,000 16,875
0.90 * 95/100 * 150,000 128,250
0.10 * 80/100 * 150,000 12,000
129,000 131,625 140,250
Sales Revenue $322,500 $329,063 $350,625
Production cost (180,000) (180,000) (180,000)
Cost of design (100,000) (130,000) (150,000)
Expected profit $42,500 $19,063 $20,625
Sales revenue = Non-defective sandwiches * $2.50
Product cost = Production units * $1.20
Expected profit = Sales Revenue - (Product cost + Design cost)
Bramble Corp. has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier is interested in producing the item for Bramble. If the item is produced outside, Bramble could use the released production facilities to make another item that would generate $200000 of net income. At what unit price would Bramble accept the outside supplier’s offer if Bramble wanted to increase net income by $140000?
Answer:
Bramble Corp.
Unit price at which Bramble would accept the outside supplier's offer
= $14.40
Explanation:
a) Data and Calculations;
Production capacity in units = 100,000
Variable costs = $600,000
Fixed costs = 900,000
Total costs = $1,500,000
Target net income 140,000
Total revenue = $1,640,000
Alternative income (200,000)
Differential revenue $1,440,000 ($1,640,000 - $200,000)
Unit price at which Bramble would accept the outside supplier's offer =
$14.40 ($1,440,000/100,000)
An investment offers $5,800 per year for 20 years, with the first payment occurring one year from now. a. If the required return is 7 percent, what is the value of the investment today
Answer:
Present value of the investment= $61,445.28
Explanation:
Giving the following information:
Annual payment= $5,800
Number of periods= 20 years
Interest rate= 7%
First, we need to calculate the future value of the investment:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {5,800*[(1.07^20) - 1]} / 0.07
FV= $237,773.86
Now, the present value:
PV= FV / (1 + i)^n
PV= 237,773.86 / (1.07^20)
PV= $61,445.28
Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
Answer:
Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand
Explanation:
1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.
2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.
Combining Supply and Demand
Scenario: The following shows a demand and supply schedule listing CDs demanded and supplied in the
millions) per week at each price. Graph each the following demand/supply schedules on one demand graph
and then answer the questions below:.
$6
Shortage/
Surplus
(Qs - Qd)
$5
$4
Price Per Quantity Quantity
Compact Demanded Supplied
Disc (Qd) (Qs)
$6
o
9
$5
2
6
$4
3
5
$3
4
4
$2
6
3
$1
9
0
$3
$2
$1
1
2 3 4 5 6 7 8
9 10 11 12 13 14
Answer:
the answer is $3
Explanation:
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Mesa County contracts with New Construct Inc. to build a courthouse. New Construct hires Odell to excavate the site. Odell’s work damages adjacent properties. Mesa files a suit against the excavator, who argues that the county is not named in his contract with New Construct. Most likely, the court will hold that Odell is:_________
a. not liable because Mesa is not named in Odell’s contract.
b. liable on the ground that Mesa is an incidental third-party beneficiary.
c. liable on the ground that Mesa is an intended third-party beneficiary.
d. not liable because Odell’s contract was with New Construct, not Mesa.
Answer:
c. liable on the ground that Mesa is an intended third-party beneficiary
Explanation:
In a contract, the third-party beneficiary is a business or a person that benefits from the agreement and the terms of the contract that is made between the two other parties. According to law, third-party beneficiary have certain rights which they can enforced if the contract is not fulfilled.
In the context, Mesa is a third party beneficiary. The Mesa County enters into a contract with New Construct Inc. to construct a court house. Now New Construct Inc. again hires the firm Odell to excavate the land site.
While excavating Odell damages few nearby properties, so Mesa County files a law suit against Odell. But Odell argues that Odell is not in agreement with Mesa County or have not entered into with any contract with the County, so Mesa cannot sue the excavator.
But the court hold that as Mesa County is the third party beneficiary of the contract and have certain rights, Odell is held liable for the loss and should compensate for the loss to the County.
Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the current bond price
Answer:
the current bond price is $1,147.20
Explanation:
The computation of the current bond price is shown below:
Given that
NPER = 10
RATE = 6%
PMT = $1,000 × 8% = $80
FV = $1,000
Here we assume the future value be $1,000
The formula is shown below:
= -PV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the current bond price is $1,147.20
An economic transaction in which one party trades a good or service for another good or services is called barter. comparative advantage. absolute advantage. a production possibility.
Answer:
barter
Explanation:
Barter can be regarded as act of trading goods/services involving two or more parties whereby a party provide a goods/services in return for goo/service provided to him/her by another party. It involves system of exchange without using money which means no monetary medium involve. It should be noted that An economic transaction in which one party trades a good or service for another good or services is called barter
Which functions do investment companies perform for their investors? Check all that apply: Asset management Diversification and divisibility Investment advice Lower transaction costs Record keeping
Answer: All of the above
Explanation:
Investment companies such as mutual and closed end funds work to increase the investments of investors by providing superior asset management services. By investing in many different sectors, they give the investors diversification and divisibility benefits which reduce risk to the investor.
Because these investment companies invest for a lot of people, they are able to buy in bulk which lowers transaction costs per investor. They also have to keep records of all these transactions so they provide the benefit of record keeping as well.
The functions that can be attributed to investment companies to their investors are;
Asset management Diversification divisibility Investment advice Lower transaction costs Record keepinginvestment companies are those companies that are responsible management Diversification and divisibility Investment advice to their clients.
Therefore, all the provided options are correct.
Learn more about investment companies at;
https://brainly.com/question/11834742
impact of collusion in terms of output and price on consumers and producers
Answer: See explanation
Explanation:
Collusion refers to the agreements among the sellers of a particular product to either fix or increase the price and also reduce output. The main idea behind this is to increase profits and also reduce the competitiveness in such market.
Collusion can bring about high prices for the consumers and this ultimately leads to the reduction in the consumer surplus. Also, the new firms that want to enter the market may discouraged since the collusion can be an entry barrier.
Deazia is the sole proprietor of Baldwin Hair Salon that reported net income of $44,000 for the year. During the year she withdrew $20,000 from the business for personal use. How much income from the above must Deazia include in her gross income for the year
Answer:
$44,000
Explanation:
Based on the given information we were told that the sole proprietor reported NET INCOME of the amount of $44,000 for the year which means that the amount of income from the above that Deazia must include in her GROSS INCOME for the year will be the reported NET INCOME amount of $44,000.
A middleman is Multiple Choice a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. a person or firm whose sole responsibility is to find distributors for a manufacturer's products. any intermediary between a manufacturer and end-user markets. a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. an intermediary that sells to ultimate consumers.
Answer:
would you still like me to help you with this question
A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's personal financial statement and income are consistent with those of her wealthy clients, yet she never buys limited partnership units for her personal account. Which statement is TRUE
Answer: Her actions are inconsistent with the advice being given to her clients and this must be disclosed
Explanation:
Since the registered investment adviser often recommends real estate limited partnership investments to her wealthy clients but she never buys limited partnership units for her personal account.
This shows that her actions are inconsistent with the advice being given to her clients and this must be disclosed.
During 2021, Blossom Co. incurred the following costs: Testing in search for process alternatives $390000 Costs of marketing research for new product 260000 Modification of the formulation of a process 570000 Research and development services performed by Crane Corp. for Blossom 485000 In Blossom's 2021 income statement, research and development expense should be
Answer:
See below
Explanation:
Given the above information, our concern when calculating amount of research and development costs charged to Blossom corp. for 2021 should be the period cost. This means costs that are incurred in the period under review. I.e 2021.
= Testing in search for process alternative + Cost of marketing research + Modification of formulation of a process + Consulting fees
= $390,000 + $260,000 + $570,000 + $485,000
= $1,705,000
Therefore, Blossom's 2021 income statement , research and development expense should be $1,705,000.
The purpose or objectives of competition policy
Answer:
to encourage creativity
Straight-Line: Amortization of bond discount LO P2 Skip to question [The following information applies to the questions displayed below.] Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 when the market rate is 12%. Problem 14-4A
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance
2. determine the total bond interest expense to be recognized over the bonds' life.
Answer:
Legacy
1. Journal Entry:
January 1:
Debit Cash $570,443
Debit Bonds Discount $69,557
Credit Bonds Payable $640,000
To record the issuance of the bonds at a discount.
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160
Explanation:
a) Data and Calculations:
January 1, 2019
Face value of bonds issued = $640,000
Price of bonds = $570,443
Bonds discount = $69,557 ($640,000 - $570,443)
Coupon interest rate = 8.5%
Market interest rate = 12%
Maturity period = 4 years
Interest payment = semiannual on June 30 and December 31
With straight-line amortization of bonds discount, the semiannual amortization will be = $8,695
Semi-annual interest payment = $27,200 ($640,000 * 4.25%)
Semi-annual interest expense = $35,895 ($27,200 + $8,695)
Annual interest expense = $71,790
1. Transaction Analysis
January 1:
Cash $570,443 Bonds Discount $69,557 Bonds Payable $640,000
2. Total bond interest expense to be recognized over the bonds' life:
= $287,160 ($71,790 * 4) or ($35,895 * 8)
A buyer who accepts goods but notifies the seller the goods are non-conforming a. cannot recover any damages. b. can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. c. cannot recover incidental damages. d. cannot recover consequential damages.
Answer:
B)can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.
Explanation:
Nonconfirming goods can be regarded as goods which did not meet specification that is been provided in a contract, in this case A buyer has the entitlement order for rejection of tender of the goods. the acceptance of the nonconfirming goods can also be revoked by the buyer. In a case, whereby a buyer accepts goods but notifies the seller the goods are non-conforming, he/she can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.
Explain how mixed costs are related to both fixed and variable costs. A. Mixed costs have a fixed portion that is a cost per unit of cost driver activity. Mixed costs also have a variable portion that is usually a cost per time period. B. Mixed costs are the sum of the fixed and variable costs that are related to equipment costs. These mixed costs are a form of committed costs during the production phase. C. A mixed cost is the sum of fixed costs and the portion of variable costs that are related to salaries and wages. These mixed costs are discretionary costs that easily fluctuate and must therefore be kept separate during a production phase. D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Answer:
D. A mixed cost has a fixed portion that is usually a cost per time period. A mixed cost also has a variable portion that is a cost per unit of cost driver activity.
Explanation:
As we know that
The variable cost is the cost that can change when the level of production increase or decrease
The fixed cost is the cost that remains fixed whether the production level increased or not
ANd, the mixed cost includes some part of the variable cost and some part of the fixed cost
So as per the given options, the option D is correct as the mixed cost involved the fixed portion that could be cost per the time. And, it involved the variable portion i.e cost per unit with respect to the cost driver activity
what is the positive impact of Commerce subject on our society?
Answer:
E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business
The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented below. Actual Results:Budget Data: 10,000 Trucks Produced and Sold12,000 Trucks Planned Unit selling price$15Unit selling price$14 Variable costs:Unit variable cost: Direct materials$ 52,800 Direct materials$ 5 Direct labor51,000 Direct labor4 Variable overhead 23,000 Variable overhead 2 Total variable costs$126,800Total unit variable costs$11 Fixed overhead$9,000Fixed overhead$9,600 Required: Prepare a variance analysis to compare actual results and the master budget.
a budget is used to do which of the following
Answer:
A budget is a financial plan used to estimate future income and expenses. The budgeting process may be carried out by individuals or by organizations. Budgets help an entity determine whether it can continue to operate with its projected income and expenses.
Explanation:
thank me later
Informal peacemaking and mediation are characterized on the continuum as having __________ personal control by disputants, whereas arbitration and litigation have ________ personal control by the disputants.
Answer:
high; low.
Explanation:
A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.
CALM is a 4-step process for addressing and defusing conflict.
These four step process for conflict resolution or defusing conflicts includes;
I. Clarify (C): this involves finding out more information about what caused the conflict.
II. Ask (A): you should ask the opposing party about the issues while being polite.
III. Listen (L): listen attentively to get more information.
IV. Move forward (M): do not dwell on the past issue after they have been resolved.
Mediation can be defined as an alternative dispute resolution (ADR) approach which involves an impartial and neutral third party who is saddled with the responsibility of proposing a solution to conflict between two or more parties.
Basically, a mediator is a professional trained in conflict or dispute resolution through the use of effective negotiation techniques and communication strategies. Thus, a neutral third party such as a mediator or negotiator from outside an organization or group, who will hear a conflict case via a nonbinding process should be availed the opportunity to make peace between two or more disagreeing parties.
Generally, the disputants (disagreeing parties) generally have a low personal control over an arbitration and litigation while during an informal peacemaking and mediation process, there is a high level of personal control by disputants on the continuum.
You have $25,832.81 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $210,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
Answer: 14 years
Explanation:
The question states that an individual has $25,832.81 in a brokerage account, and plan to deposit an additional $4,000 at the end of every future year until the money in the account totals $210,000 and it's expected to earn 10% annually on the account.
To know the number of years that it'll take to reach the goal, we'll solve this in Excel as:
= =NPER (10%,-4000,-25832.81, 210000).
= 14 years
Therefore, it'll take 14 years to reach the goal.
Vaughn Manufacturing incurred the following costs for 84000 units: Variable costs $504000 Fixed costs 392000 Vaughn has received a special order from a foreign company for 2500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4500 for shipping. If Vaughn wants to earn $5000 on the order, what should the unit price be?
Answer: $9.80
Explanation:
The unit price to earn $5000 on the order will be calculated thus:
The variable costs for 2500 units will be:
= 504000/84000 × 2500
= 15000
The unit price will now be:
= (15000+4500+5000) / 2500
= 24500 / 2500
= $9.80
The unit price is $9.80
Can you order with a Nike gift card online?
Answer:
ok call 911 hahaha thanks for the points
Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700
Journalize the closing entries.
Answer and Explanation:
The journal entries are shown below:
1 Fees Earned $614,500
To Income Summary A/c $614,500
(Being the closing of revenue accounts is recorded)
2
Income Summary A/c $486,900
To Rent Expenses A/c $140,000
To Supplies Expense A/c $18,200
To Wages Expenses A/c $320,000
To Miscellaneous Expenses A/c $8,700
(Being the closing of expenses accounts is recorded)
3
Income Summary A/c $127,600 ($614,500 - $486,900)
To Retained Earnings A/c $127,600
(Being the closing of the income summary is recorded)
4
Retained Earnings A/c $45,000
To Dividends A/c $45,000
[Being the closing of the Dividend account is recorded]