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Question
The adjusted trial balance of Sara's Web Services follows:
| SARAS WEB SERVICES Adjusted Trial Balance December 31 | ||
| Cash | $ 1,170 | |
| Supplies | 1,930 | |
| Prepaid insurance | 600 | |
| Computer equipment | 20,600 | |
| Accumulated depreciation Computer equipment | $ 5,400 | |
| Accounts payable | 325 | |
| Common stock | 3,000 | |
| Retained earnings | 10,925 | |
| Dividends | 4,800 | |
| Services revenue | 21,720 | |
| Salaries expense | 6,920 | |
| Depreciation expense | 2,000 | |
| Rent expense | 1,200 | |
| Supplies expense | 800 | |
| Utilities expense | 950 | |
| Insurance expense | 400 | |
| Totals | $41,370 | $41,370 |
a. Prepare the closing entries for Sara's Web Services.
b. What is the balance of the retained earnings account after the closing entries are posted?
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
B. $10,920
C. $25,750
D. $237,547
E. $33,513
Q:
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B. $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
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E. $900 but Scott would not be willing to acquire the machine.
Q:
A disadvantage of using the payback period to compare investment alternatives is that:
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Q:
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Year 2
Year 3
Total $4,000
$15,000
$6,000
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i = 10% n = 2
i = 10% n = 3 .9091
.8264
.7513 A. $6,217.50
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E. $0.00
Q:
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Q:
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The _______________________________ is computed by dividing a project's after-tax net income by the average amount invested in it.
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Q:
The process of restating future cash flows in terms of their present value is called _____________________.
Q:
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A. An annual period of 250 working days.
B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
Q:
The most useful budget figures are developed:
A. From the top down.
B. From the bottom up following a participatory process.
C. Solely by the budget committee.
D. By the CEO.
E. After the accounting period has begun.
Q:
Preparing a master budget is usually the responsibility of:
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B. The marketing department.
C. A budget committee.
D. The chief financial officer.
E. Lower level management.
Q:
Part of the cash budget is based on information drawn from the capital expenditures budget.
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Activity-based budgeting is a budget system based on expected activities and their activity levels, which helps management plan for the resources required.
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The budgets within the master budget must be prepared in a definite sequence as dictated by GAAP.
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The ______________________________ shows the budgeted costs for direct materials, direct labor, and overhead based on the budgeted production volume from the production budget.
Q:
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April
May
June
July Unit Sales 500
580
530
600 Ending Raw Materials Inventory
663 lbs. Ending Finished Goods Inventory
174 units Desired ending inventory:
Raw materials = 30% of next month's production needs
Finished goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
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Q:
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107,000 112,400 Operating expenses: Payroll
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5,400 5,700 Rent
1,500 1,500 Depreciation
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40,000 Bank loan payable
16,000 Additional data:
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(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $40,000 is required at the end of each month.
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Q:
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B. It is not permitted to be used for financial reporting.
C. It is not permitted to be used for tax reporting.
D. It assigns all manufacturing costs to products.
E. It requires only variable costs to be treated as product costs.
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Which of the following is not a product cost?
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B. Indirect manufacturing costs.
C. Direct materials.
D. Manufacturing overhead.
E. Advertising costs.
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Q:
When units produced exceed the units sold, income under absorption costing is higher than income under variable costing.