This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year

Answers

Answer 1

Answer:

$14.88

Explanation:

The computation of the stock price is given below:

A total return of 12% means that

= 0.12 × 14

= $1.68 in a year.

Now  

The total dividend payments for 4 quarters is

= 0.2 × 4

= $0.8.

Now the price of the stock should increase by

= 1.68 - 0.8

= 0.88

So the stock price one year from now is

= 14 + 0.88

= $14.88


Related Questions

The question, "What are the distinguishing characteristics of effective leaders?" sparked which approach to the study of leadership?

Answers

Answer:

behavioral approach to the study of leadership

Explanation:

In simple words, The behavioral approach is only concerned with what managers do and what they behave. The behavioral approach broadened the science of leadership to encompass the activities of leaders toward followers in diverse settings by moving the study of leadership to leader behaviors. Monitoring and analyzing a leader's movements and behaviors in response to a given circumstance is central to behavioral leadership theory.

The question, "What are the distinguishing characteristics of effective leaders?" sparked the:

Behavioral approach to the study of leadership

According to the given question, we can see that a question was asked which wants to mirror on the unique features of an effective leader and asked us to show the type of approach which was sparked as a result of this question.

As a result of this, we can see that the type of approach which was sparked as a result of the question about the distinguishing characteristics of effective leaders is behavioral approach.

This is because, this type of approach focuses on leaders and how their activities impacts the followers.

Read more here:

https://brainly.com/question/18229926

At December 31, 2020, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2020.

Answers

Answer:

Deferred tax asset = $21000

Explanation:

Given the warranty liability = $105000

Effective tax rate = 20%

The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.

Deferred tax asset = Effective tax rate x Warranty liability

Deferred tax asset = 20% x $105000

Deferred tax asset = $21000

relationship between short and long run in Philips curve

Answers

Answer:

In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off. In the 1960's, economists believed that the short-run Phillips curve was stable.

Explanation:

https://courses.lumenlearning.com/boundless-economics/chapter/the-relationship-between-inflation-and-unemployment/

Moonbeam Company manufactures toasters. For the first 8-months of 2017, the company reported the following operating results while operating at 75% of plant capacity:

Sales (350,000 units) $4,375,000
Cost of goods sold 2,600,000
Gross profit 1,775,000
Operating expenses 840,000
Net income $935,000

Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.

Required:
a. Prepare an incremental analysis for the special order.
b. Should Moonbeam accept the special order? Why or why not?

Answers

Answer:

Moonbeam Company

a. Incremental Analysis:

Sales revenue:

Units of toasters (21,600 at $8.12)   $175,392

Variable costs (21,600 * $7.12)           153,792

Shipping costs                                         3,100

Total incremental costs                   $156,892

Incremental net income                    $18,500

b. Moonbeam should accept the special order.  It has the required capacity to deliver the additional toasters.  It will generate an incremental income of $18,500, which is better than nothing.  

Explanation:

a) Data and Calculations:

Sales (350,000 units) $4,375,000

Cost of goods sold       2,600,000

Gross profit                     1,775,000

Operating expenses        840,000

Net income                    $935,000

Operating capacity = 75%

Current sales = 350,000

Plant capacity = 466,667 units (350,000/75%)

                                                  Total           Per Unit

Sales (350,000 units)           $4,375,000    $12.50

Variable cost of goods sold = 1,820,000 ($2,600,000 * 70%)

Variable operating expense =  672,000 ($840,000 * 80%)

Total variable costs =           $2,492,000    $7.12

Net income =                         $1,883,000

Special Order:

Incremental Sales revenue

Units of toasters (21,600 at $8.12)   $175,392

Variable costs (21,600 * $7.12)           153,792

Shipping costs                                         3,100

Total incremental costs                   $156,892

Incremental net income                    $18,500    

What is the change in net income if fixed cost of $20,000 can be avoided and Frannie could rent out the factory space no longer in use for $20,000?

Answers

Answer:

Note The full question is attached as picture below

1). Purchasing cost = 10,000* $18

Purchasing cost = $180,000

Making cost = Direct material + Direct labor + Variable overhead

Making cost = $65,000 + $55,000 + $30,000

Making cost = $150,000

Difference in cost (Per unit) = ($180,000-$150,000) / 10,000\

Difference in cost (Per unit) = $3

Change in net income = $180,000 - $150,000

Change in net income = $30,000 (Decrease)

2. Purchasing cost = 10,000*$18

Purchasing cost = $180,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

Difference in cost (per unit) = ($180,000 - $170,000) / 10,000

Difference in cost (per unit) = $1

Change in net income (decrease) = $170,000 - $180,000

Change in net income (decrease) = $10,000

3. Purchasing cost = $180,000 - $20,000

Purchasing cost = $160,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

Change in net income = $170,000 - $160,000

Change in net income = $10,000 (increase)

Find the intrinsic value of XYZ Inc. The DPS at the end of year 1 is $2.00; at the end of year 2 is $2.40; at the end of year 3 is $2.70. After the third year, the DPS grows at a constant rate of 5%. The required rate of return is 12%.

Answers

Answer: 34.33

Explanation:

Firstly, we'll calculate the terminal value

which willl be:

= 2.70 × (1+5%)/(12% - 5%)

= 2.70 x 1.05/(0.12 - 0.05)

= 40.5

Then, the intrinsic value will be:

= 2/1.12 + 2.4/1.12² + (2.7 + 40.5)/1.12³

= 34.33

Therefore, the the intrinsic value of XYZ Inc is 34.33

Dan purchases a 1000 par value 10-year bond with 9% semiannual couponsfor 925. He is able to reinvest his coupon payments at a nominal rate of 7%convertible semiannually.Calculate his nom

Answers

Answer:

9.2%

Explanation:

Missing word "Calculate his nominal annual yield rate convertible semiannually over the ten-year period"

Semi annual coupon payments = 9% / 2 = 4.5%

Par value = 4.5% * 1,000 = $45

interest rate per period = r = 7% / 2 = 3.5%

Number of periods, n = 2 x 10 = 20

FV of all the coupons reinvested = 45 / r * [(1 + r)^n - 1]

FV of all the coupons reinvested = 45 / 3.5% * [(1 + 3.5%)^20 - 1]

FV of all the coupons reinvested = $1,272.59

Receipt of par value at the end of the 10 years = par value = 1,000

Total accumulated value at the end of 10 years =  $1,272.59 + 1,000

Total accumulated value at the end of 10 years = $2,272.59

Invested amount = $925

i = nominal interest convertible semi annually.

$925 * (1 + i / 2)^n = 2,272.59  

925 * (1 + i / 2)^20 = 2,272.59

i = 2 * [(2,272.59 / 925)^1/20 - 1]

I = 9.19%

I = 9.2%

So, his nominal annual yield rate convertible semiannually over the ten-year period is 9.2%

As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________

Answers

Answer: c. competitor imitation

Explanation:

When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.

This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.

Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate?
a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.
b. The stock of Kaskin, Inc., has more total risk than Quinn, Inc.
c. The stock of Quinn, Inc., has more systematic risk than that of Kaskin, Inc.

Answers

Answer: a. The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc.

Explanation:

The beta of a stock measures its systematic risk which is its risk in relation to the market. With a higher systematic risk, there would be a higher expected return to compensate for this risk.

The beta is used to calculate the expected return in the CAPM formula:

Expected return = Risk free rate + Beta * Market premium

Note how the higher the beta, the higher the expected return based on the above formula.

what is another name for advertising?

Answers

Answer:

commercial,  message,  pitch

Explanation:

yes

Salud Company reports the following information.
Selected Annual Income Statement Data Selected Year-End Balance Sheet Data
Net income $445,000 Accounts receivable increase $46,000
Depreciation expense 93,000 Prepaid expenses decrease 16,500
Gain on sale of machinery 23,600 Accounts payable increase 7,400
Wages payable decrease 3,700
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Answers

Answer:

The Cash Flow statement is attached with this answer please find that

Explanation:

In the Indirect method the following adjustments are made in the net income for the period

Non cash AdjustmentsNon operating adjustmentsWorking capital changes

A complete answer is available in the attached file.

Matching Items Reported to Cash Flow Statement Categories (Indirect Method).
Adidas AG is a global company that designs and markets sports and fitness products, including footwear, apparel, and accessories. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities, Investing Activities, or Financing Activities section of the statement or use Not Applicable if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement).
1. Dividends paid.
2. Repayments of short-term borrowings.
3. Depreciation and amortization.
4. Proceeds from reissuance of treasury shares to employees.
5. [Change in] Accounts payable and other liabilities.
6. Cash collections from customers.
7. Purchase of investments.
8. Net income.
9. Purchase of property, plant, and equipment.
10. Increase in receivables and other assets.

Answers

Answer:

1. Dividends paid.

Classification: Financing Activity

2. Repayments of short-term borrowings.

Classification: Financing Activity

3. Depreciation and amortization.

Classification: Operating Activities

4. Proceeds from reissuance of treasury shares to employees.

Classification: Financing Activity

5. Change in Accounts payable and other liabilities.

Classification: Operating Activities

6. Cash collections from customers.

Classification: Not Applicable

7. Purchase of investments.

Classification: Financing Activity

8. Net income.

Classification: Operating Activities

9. Purchase of property, plant, and equipment.

Classification:  Investing Activities

10. Increase in receivables and other assets.

Classification: Operating Activities

You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx of updated technology to its manufacturing plants, service industry and the medical field in the last three years. This change boosted the growth of the country’s productivity by 75%, yet you see that wages have been very slow to respond to this growth. As you begin to analyze the natural unemployment rate for this time frame, what do you most likely discover?

Answers

Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.

Explanation:

The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.

Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.

The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exporting activities result in receivables. (LCU represents the local currency unit of the foreign entity.)

Required:
If the direct exchange rate increases, does the dollar weaken or strengthen relative to the other currency? If the indirect exchange rate increases, does the dollar weaken or strengthen relative to the other currency?

Answers

Answer:

The Hi-Stakes Company

a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.

b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.

Explanation:

When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions.  However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.

Bonita Industries constructed a building at a cost of $14400000. Weighted-average accumulated expenditures were $5620000, actual interest was $566000, and avoidable interest was $272000. If the salvage value is $1120000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Answers

Answer:

$338,800

Explanation:

Cost of the building = $14400000

Average accumulated expenditures =  $5620000

Actual interest = $566000

Avoidable interest =  $272000

Salvage value = $1120000

Useful life = 40 years

Depreciation expense for the first full year:

= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life

= (($14400000 + $272000) - $1120000) / 40

= ($14672000 - $1120000) / 40

= $13552000 / 40

= $338,800

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs. True False

Answers

Answer:

true......................

XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation:

Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Selling price $120 per unit

Marketing and administrative expenses

Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000

Manufacturing costs
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000

Using the information given, above:

a. Calculate unit product cost under the variable costing method and the absorption costing method.
b. Prepare an Income Statement under the variable costing method, as well as the absorption costing method.
c. Prepare a schedule to reconcile the net operating income under the variable and absorption costing methods

Answers

Answer:

XYZ Company

a. Unit product cost under:

1. variable costing method

Direct materials cost per unit                                              $30

Direct labor cost per unit                                                      $14

Variable manufacturing overhead cost per unit                  $4

Variable marketing and administrative expenses per unit $4

Total variable cost                                                               $52

2. absorption costing method:

Direct materials cost per unit                             $30

Direct labor cost per unit                                     $14

Variable manufacturing overhead cost per unit  $4

Fixed manufacturing overhead cost                  $32 ($1,280,000/40,000)

Total product cost per unit                                 $80

b1. Income Statement under the variable costing method

Sales revenue                             $4,200,000 ($120 * 35,000)

Cost of goods sold:

Variable cost of goods sold          1,680,000 ($48 * 35,000)

Variable marketing and admin        140,000 ($4 * 35,000)

Total cost of goods sold               1,820,000

Contribution margin                  $2,380,000

Fixed expenses:

Fixed marketing and

administrative expenses          $1,120,000

Fixed manufacturing overhead 1,280,000

Total fixed expenses               $2,400,000

Net operating loss                        $20,000

b2. Income Statement under the absorption costing method

Sales revenue                             $4,200,000 ($120 * 35,000)

Cost of goods sold:

Variable cost of goods sold          1,920,000 ($48 * 40,000)

Fixed manufacturing overhead    1,280,000

Less Ending inventory                   (400,000)

Total cost of goods sold              2,800,000

Contribution margin                   $1,400,000

Period expenses:

Marketing and Administrative:

Fixed                 $1,120,000

Variable                 140,000       $1,260,000

Net operating income                  $140,000

c. Schedule to reconcile the net operating income under the variable and absorption costing methods:

Net operating income under absorption = $140,000

Fixed cost absorbed in ending inventory =  160,000 ($32 * 5,000)

Net operating loss under variable =           ($20,000)

Explanation:

a) Data and Calculations:

Beginning inventory       0 units

Units produced    40,000 units

Units sold             35,000 units

Ending inventory   5,000 units

Selling price $120 per unit

Marketing and administrative expenses:

Variable marketing and administrative expenses per unit $4

Fixed marketing and administrative expenses per month $1,120,000

Manufacturing costs:

Direct materials cost per unit $30

Direct labor cost per unit $14

Variable manufacturing overhead cost per unit $4

Fixed manufacturing overhead cost per month $1,280,000

Schneider Inc. had salaries payable of $61,400 and $90,700 at the end of Year 1 and Year 2, respectively. During Year 2, Schneider recorded $620,000 in salaries expense in its income statement. Cash outflows for salaries in Year 2 were:

Answers

Answer:

$590,700

Explanation:

We can determine the amount of Cash outflows for salaries in Year 2 by preparing a Salaries Payable T - Account.

Salaries Payable T - Account.

Debit

Ending Balance                                          $90,700

Cash (Balancing figure)                            $590,700

Total                                                           $681,400

Credit

Beginning Balance                                     $61,400

Income Statement                                   $620,000

Total                                                           $681,400

thus,

Cash outflows for salaries in Year 2 were $590,700.

Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40. On the basis of this information, the fixed cost was:

Answers

Answer:

$550,000

Explanation:

The computation of the fixed cost is shown below:

But before that the variable cost per hour is

= (25,000 ×$30.40 - 22,000 × $33.40) ÷ (25,000 - 22,000)

= ($760,000 - $734,800) ÷ (3,000)

= $8.4

Now the fixed cost is

= $760,000 - (25,000 × $8.4)

= $550,000

Part A. Identify the following users of accounting information as either an internal (I) or an external (E) user.
______ 1. Shareholders
______ 2. Creditors
______ 3. Nonexecutive employee
______ 4. Research and development director
______ 5. Purchasing manager
______ 6. Human resources director
______ 7. Production supervisors
______ 8. Distribution managers
Part B. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user of accounting information.
______ 1. What are the costs of our service to customers?
______ 2. Should we make a five-year loan to that business?
______ 3. Should we spend further research on our product?
______ 4. Do income levels justify the current stock price?
______ 5. What are reasonable payroll benefits and wages?
______ 6. Which firm reports the highest sales and income?
______ 7. What are the costs of our productâs ingredients?

Answers

Answer:

Part A

1. Shareholders

Identification: External user

2. Creditors

Identification: External user

3. Non-executive employee

Identification: External user

4. Research and development director

Identification: Internal user

5. Purchasing manager

Identification: Internal user

6. Human resources director

Identification: Internal user

7. Production supervisors

Identification: Internal user

8. Distribution managers

Identification: Internal user

Part B

1. What are the costs of our service to customers?

Identification: Internal user

2. Should we make a five-year loan to that business?

Identification: External user

3. Should we spend further research on our product?

Identification: Internal user

4. Do income levels justify the current stock price?

Identification: External user

5. What are reasonable payroll benefits and wages?

Identification: Internal user

6. Which firm reports the highest sales and income?

Identification: External user

7. What are the costs of our productâs ingredients?

Identification: Internal user

The current price for a good is ​$​, and units are demanded at that price. The price elasticity of demand for the good is . When the price of the good drops by percent to ​$​, consumer surplus _______ increases decreases by ​$ nothing. ​(Enter your response to the nearest​ penny.)

Answers

Answer:

Consumer surplus decreases by $180.

Explanation:

Current consumer surplus =  $25 * 90 unit = $2250

If the price of goods drop to $23 then the new consumer surplus will be

$23 * 90 units = $2070

The change in consumer surplus is $180 .

Loco Pony Adventures rents clowns and ponies for children’s birthday parties. If the annual total cost of furnishing entertainment is given by TC = 0.5 Q 2 + 25 Q + 1,000, the average variable cost of catering to 30 birthday parties is:

Answers

Answer and Explanation:

The computation is shown below:

As we know that the variable cost is the cost that changed with the production

So the variable cost arise from TC should be

VC=0.5Q^2+25Q

= 0.5 × (30)^2+25 × 30

= 1200

And,  

AVC is

= VC ÷ Q

= 1200 ÷ 30

= 40

Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is

Answers

Answer: c. equal to the quantity of loanable funds supplied.

Explanation:

Equilibrium in any market occurs when the quantity demanded is equal to the quantity supplied and the loanable funds market are no different except that the quantity that is demanded and supplied in this market is the loanable funds and the price is the interest rate.

When the interest rate being offered by the financial institutions lending money is the same as the one being demanded by the people and companies who want loanable funds, the market is said to be in equilibrium.

How does the car insurance policy define insurance

Answers

Answer:

Insurance is an obligation of the insurer, confirmed by the insurance contract of the insurer with the policyholder, who arranges insurance for the benefit of the insured, towards the insured to mitigate the impact from the specified negative "loss event". The insurance only covers certain, pre-agreed insurance events that occur with a certain estimable probability. As such, the insurance does not affect the risk of the event or any damage, but only mitigates their impact.

What is the weighted average cost of capital if a business has a cost of equity of 11%, a yield on debt of 6%, a tax rate of 30%, 100 million market value of debt, and 250 million market value of equity

Answers

Answer:

9.028 %

Explanation:

weighted average cost of capital = cost of equity x weight of equity + cost of debt x weight of debt

where,

cost of equity = 11 %

cost of debt (consider after tax) = 6% x (1 - 0.30) = 4.20 %

weight of equity = 250 million ÷ 350 million = 0.71

weight of debt = 100 million ÷ 350 million = 0.29

therefore,

weighted average cost of capital = 11 % x 0.71 + 4.20 % x 0.29

                                                       = 9.028 %

In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as:___________.
A- Due diligence
B- Market intelligence
C- Consultation
D- Market evaluation

Answers

Answer:

A- Due diligence

Explanation:

Due diligence is an investigation, audit or the review that to be performed in order to confrim the facts within the consideration. It needs the examination of the financial records prior entered into the upcoming transaction with the other party

So as per the given situation, the first option is correct

Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calculate the nominal terminal value of the investment at the end of year 4.

Answers

Answer: $89300.65

Explanation:

Based on the information given in the question, the nominal terminal value of the investment at the end of year 4 will be calculated thus:

Inflation rate = 2%

Real terminal value of investment = $82,500

Normal terminal value of investment will be:

= $82500 × (1+2%)⁴

= $82500 × (1 +0.02)⁴

= $82500 × 1.02⁴

= $89300.65

Down and Out Co. operates an executive placement service for corporate executives displaced by corporate restructuring. Its monthly total cost of cases is given by TC = 25 Q 1/2 + 2,500; the average cost at a caseload of 25 attempted placements per month is:

Answers

Answer:

The average cost at a caseload of 25 attempted placements per month is 105.

Explanation:

The total cost function given in the question first correctly stated as follows:

TC = 25Q^1/2 + 2,500 ................ (1)

A caseload of 25 attempted placements implies that:

Q = 25

Substitute Q = 25 into equation (1), we have:

TC = (25 * 25^(1/2)) + 2,500 = 2,625

The average cost (AC) can now be calculated as follows:

AC = TC / Q = 2,625 / 25 = 105

Therefore, the average cost at a caseload of 25 attempted placements per month is 105.

The ________ is the difference between merchandise imports and exports and a measure of a country's international trade in goods.

Answers

Answer:

balance of trade

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

In Economics, a balance of trade is a measure of the difference between merchandise imports and exports, as well as a country's international trade in goods. Thus, it's a measure of the difference between the monetary value of the import and export of goods of a country over a specific period of time.

Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services: Fees Earned $1,150,000 Dividends 5,000 Rent Expense 200,000 Retained Earnings 450,000 Supplies Expense 19,300 Wages Expense 915,000 Miscellaneous Expense 31,900
Journalize the four entries required to close the accounts.

Answers

Answer: See explanation

Explanation:

The journal entry will be prepared thus:

May 31:

Dr Fees earned $1,150,000

Dr Retained earnings $16,200

Cr Rent Expense $200,000

Cr Supplies expense $19,300

Cr Wages expenses $915,000

Cr Miscellaneous expense $31,900

May 31:

Dr Retained earnings $5000

Cr Dividend $5000

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