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1 year ago

The company's adjusted trial balance as follows includes the following accounts balances:

Business

1 answer:

frozen [14]1 year ago

7 0

Answer:

Closing Journal Entries:

1. Debit Fees Earned $56,000

Credit Income Statement $56,000

To close the account for the period.

2. Debit Income Statement $25,000

Credit Depreciation Expense $25,000

To close the account for the period.

3. Debit Income Statement $23,000

Credit Salaries Expense $23,000

To close the account for the period.

4. Debit Income Statement (Retained Earnings) $2,000

Credit Dividends $2,000

To close the account for the period.

Explanation:

Closing entries are journal entries that are made to close temporary (periodic) accounts, revenue and expenses to the Income Statement. This paves the way for only permanent accounts to remain for the Balance Sheet. Temporary accounts are not carried forward to the next period unlike permanent accounts.

Closing entries transfer all revenue and expense accounts at the end of an accounting period to an income summary account, for the purpose of calculating the financial performance results (called gross profit and net income or loss) for the period.

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4. Describe two methods you would use to find potential employees if you were in charge of advertising a job for a company. Expl

Novosadov [1.4K]

Answer:

If I had to take responsibility for advertising job for a company, there would be two possible methods that I use:

The first option is to post the job advertisement on social network or the website of the company. This can help approach the candidates who have already known about the company and concerned about the job opportunity here.

The second choice is to cooperate with a headhunter agency. By this method, the process that I have to be in charge of would be shorter, saving the time. In addition, headhunter companies have huge data of candidates and can approach much more than a company or a recruiter could do. They also have experience in screening the CV, interview to look for the most suitable candidates.

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2 years ago

Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividen

Butoxors [25]

Answer:

Cost of common stock is 12.02%

Explanation:

The cost of common stock can be computed from share price formula given below:

share price=do*(1+g)/r-g

do is the dividend just paid which is $1.70

g is the expected dividend growth per year which is 3.10%

r is the cost of common stock which is unknown

share price is $19.65

by changing the subject of the formula:

r=do*(1+g)/share price+g

r=1.70*(1+3.10%)/19.65+3.10%

r=1.7527/19.65+3.10%

r=0.0892+3.10%=12.02%

The company's cost of capital which is also the cost of common stock is 12.02%

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1 year ago

Card Corp. purchased bonds at a discount of $49,000, and accounted for the bonds as held to maturity. Subsequently, Card sold th

jonny [76]

Answer:

$42,000

Explanation:

Data provided

Bonds at a discount = $49,000

Sold bonds at a premium = $12,000

Discount amount = $19,000

The computation of the sale of bonds is shown below:-

Cost + Premium - (Cost - Carrying value cost)

Carrying cost = $49,000 - $19,000

= $30,000

Sale of bonds = (Bonds at a discount + Sold bonds at a premium) - (Bonds at a discount - Carrying cost)

($49,000 + $12,000) - ($49,000 - $30,000)

= $42,000

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2 years ago

A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: Th

xenn [34]

Answer:

The value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

Explanation:

Since the student's desired return of 6% will also start to be paid starting on his 65th birthday, the value of this deferred annuity today on his 50th birthday can be calculated by first calculating the value of the investment on the 65th birthday.

We therefore proceed with the following two steps:

Step 1: Calculation of the value of the investment on the 65th birthday

The value of the investment on the 65th birthday can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV at 65 = Present value of the annuity at 65th birthday =?

P = Annuity payment = Invested amount * Student's desired return = $8,900 * 6% = $534

r = Student's desired return rate = 6%, or 0.06

n = number of more years anticipate to live after 65th birthday = 21

Substitute the values into equation (1) to have:

PV at 65 = $534 * ((1 - (1 / (1 + 0.06))^21) / 0.06)

PV at 65 = $534 * 11.764076621288

PV at 65 = $6,282.02

Therefore, the value of the investment on the 65th birthday is $6,282.02.

Step 2: Calculation of the value of this deferred annuity today on his 50th birthday

The value of this deferred annuity today on his 50th birthday can therefore be calculated using the simple present value for as follows:

PV at 50 = PV at 65 / (1 + r)^N …………………………….. (2)

Where;

PV at 50 = the value of this deferred annuity today on his 50th birthday = ?

PV at 65 = Present value of the annuity at 65th birthday = $6,282.02

r = Student's desired return rate = 6%, or 0.06

N = number of years from 50th birthday to 65th birthday = 65 - 50 = 15

Substitute the values into equation (2) to have:

PV at 50 = $6,282.02 / (1 + 0.06)^15

PV at 50 = $6,282.02 / 2.39655819309969

PV at 50 = $2,621.27

Therefore, the value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

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1 year ago

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Answer: price competition

Explanation:

The type of competition would Funke and Dumphy likely engage in after the decrease in demand is price competition.

Price competition simply means when the companies in a particular industry lower their prices afsubst the prices of identical products in order to boost demand and sales.

Since there's a reduction in demand, Dumphy and Funke will engage in price competition to boost sales.

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1 year ago