Frosty Inc. has the following balances on December 31 prior to closing entries: Revenues$35,000 Retained Earnings, Jan. 1 10,000 Cash 7,000 Expenses 23,000 Accounts Payable 4,000 Dividends 1,000 Supplies 18,000 Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries?
A. Increase of $12,000.
B. Increase of $14,000.
C. Increase of $11,000.
D. Increase of $13,000.
Answer: C
You might also like to view...
Which of the following factors determines that a marketing channel is an indirect channel rather than a direct channel?
A) The products are complex and require extensive after-sales service. B) The products are intended for business-to-business markets rather than consumer markets. C) At least one marketing intermediary takes ownership of the products and controls distribution. D) Telemarketing and digital marketing are an integral part of the distribution system. E) The marketing channel uses one or more intermediaries who are a part of the company.
A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fallen to $15 per unit. This company's current FIFO inventory consists of 200 units purchased at $16 per unit. Net realizable value has fallen to $13 per unit. Calculate the value of this company's inventory at the lower of cost or market.
A. $3,000. B. $2,550. C. $2,700. D. $3,200. E. $2,600.
Answer the following statements true (T) or false (F)
A premise stating that accounting reports should be based on historical costs would indicate a normative approach.
The Office of ________ takes on the tough responsibility of deciding which polluters will be taken to court
A) Compliance B) Pollution Control C) Regulatory Enforcement D) Environment Protection