Answer:
income summary 550 debit
retained earnings 550 credit
--to close income sumary against RE--
Explanation:
To complete the closing entries we should determinate the balance of the Income Summary account and then, transfer into Retained Earnings.
Income Summary
<u> Debit Credit </u>
2,450
<u> 3,000 </u>
Balance 550
We will debit income summary so his blanace ends in zero and credit retained earnings so net income is accumualted and added into equity to represent it in the balance sheet.
It would be false, because they don’t go into the same category
Using the cpi in 2013, of 233 and in 1998 of 163, divide 233/163=1.43 x 100=$143 the cost in 2013 of the same baby shower item as in 1998. In other words the purchasing power of the $1 decreased over this time period to account for this.
Answer:
c. $326,948
Explanation:
we must determine the market price of the bonds:
market price = PV of face value + PV of coupons
- PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49
- PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) = $80,843.40
total market price = $326,947.89 ≈ $326,948
since the market rate is lower than the coupon rate, the bonds should be sold at a premium.
Answer:
1. No journal entry required
2. No journal entry required
3 Dr Loss $470,000
Cr Contingent liability $470,000
Explanation:
Preparation of the journal entry to Record any amounts as a result of each of these contingencies
1. Based on the information given we were told that The likelihood of the payment is reasonably possible which means that contingent liability amount was not recognized and therefore NO JOURNAL ENTRY IS REQUIRED
No journal entry required
2. Based on the information given we were told that Environmental Printing was expecting to win the case and be awarded the cash amount involved which means NO JOURNAL ENTRY IS REQUIRED reason been the CONTINGENT GAIN will not be recognized until the amount is received.
No journal entry required
3. Contingent liability was recorded because the payment is reasonably possible and Estimated.
Dr Loss $470,000
Cr Contingent liability $470,000
