Ace Company reports revenues of $40,000 and expenses of $31,000. The company paid $5,000 cash in dividends this period. After closing entries are recorded, determine the amount of the increase or decrease in the Retained Earnings account.

Ace Company reports revenues of $40,000 and expenses of $31,000. The company paid $5,000 cash in dividends this period. After closing entries are recorded, determine the amount of the increase or decrease in the Retained Earnings account.

Name: Ace Company reports revenues of $40,000 and expenses of $31,000. The c
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Ace Company reports revenues of $40,000 and expenses of $31,000. The company paid $5,000 cash in dividends this period. After closing entries are recorded, determine the amount of the increase or decrease in the Retained Earnings account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Salamon, Inc. had Retained earnings of $400,000 on 1/1/22. The company earned $250,000 forthe year ended 12/31/22. The company declared a cash dividend of $75,000 and a stockdividend of $20,000 during the year.a. Prepare the journal entries to close net income and dividends into retained earnings.b. Prepare a Retained Earnings Statement for the year ended 12/31/22.
Please help
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $13,500 of common stock for cash. Recognized $68,500 of service revenue earned on account. Collected $60,800 from accounts receivable. Paid operating expenses of $35,600. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $76,000 of service revenue on account. Collected $68,800 from accounts receivable. Determined that $970 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $49,200 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0…
The ledger of Mai Company includes the following accounts with normal balances: Common Stock $11,000; Dividends $1,800; Services Revenue $33,000; Wages Expense $18,400; and Rent Expense $5,600. Prepare the necessary closing entries from the available information at December 31.
Carla Vista Corporation earned revenues of $223400, incurred expenses of $236700, and paid dividends of $3950 during the current year. After all closing entries have been posted, the balance in the Retained Earnings account will have O increased by $9350. O increased by $17250. O decreased by $13300. O decreased by $17250.
Romney's Marketing Company has the following adjusted trial balance at the end of the current year. The company issued 420 shares at the end of the year for $4,200 cash (for a total of 840 shares at the end of the year). The effect of this transaction is included below. Cash Accounts receivable Interest receivable Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable Deferred rent revenue Contributed capital (840 shares) Retained earnings Dividends declared Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense Total Debit $ 2,700 Credit 3,400 220 2,800 4,000 17,090 $ 4,200 3,600 4,520 3,300 1,100 4,900 3,440 720 43,300 220 1,400 20,700 2,400 500 1,350 10,200 3,900 $69,260 $69,260 Prepare a statement of financial position in good form at the end of the current year.
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Required 1A Required 1B Required 2A Required 2B Current Year: 1 Year Ago: 2 Years Ago: Complete this question by entering your answers in the tabs below. Compute the current ratio for each of the three years. Numerator: Current assets Current Year: 1 Year Ago: 2 Years Ago: I Current Year $ 27,733 83,694 104,187 9,115 259,862 $ 484,591 1 1 1…
The year-end adjusted trial balance of Aggies Corporation included the following account balances: Retained Earnings, $230,000; Service Revenue, $900,000; Salaries Expense, $390,000; Rent Expense, $150,000; Interest Expense, $85,000; and Dividends, $60,000. Record the necessary closing entries.
The ledger of Mai Company includes the following accounts with normal balances as of December 31: Retained Earnings $9,000; Dividends $800; Services Revenue $13,000; Wages Expense $8,400; and Rent Expense $1,600. Prepare its December 31 closing entries. 1 Record the entry to close revenue accounts. 2 Record the entry to close expense accounts. 3 Record the entry to close the income summary account. 4 Record the entry to close the dividends account.
During the year, a company had sales of $770,000 expenses of $330,000 and it declared and paid dividends of $265,000. The company began the year with retainer earnings of $160,000. What was the amount of retainer earnings at the end of the year? Show your work.
Hendrickson Inc. ended the current year with Revenues of $245,459 COGS of $123,492 Wage Expense of $52.770 If Retained Earnings had a beginning balance for the current year of $200,000, what will the ending Retained Earnings balance be for the year after all accounting processes are complete?
Adams Company reports the following balance sheet accounts as of December 31. $ 7,200 Retained earnings 74,200 Notes payable (due in 9 years) 8,200 Office supplies 6 Salaries payable Buildings Prepaid rent Merchandise inventory Accounts payable Prepaid insurance Accounts receivable Common stock Required: Prepare a classified balance sheet. Current assets Total current assets Plant assets Total plant assets Total assets Current liabilities Total current liabilities Long-term liabilities Total long-term liabilities Total liabilities 16,400 Land 22,000 Accumulated depreciation-Building 5,400 Mortgages payable (due in 5 years) 16,000 Cash 14,000 ADAMS COMPANY Balance Sheet December 31 Assets Liabilities Equity P Prev 8 of 8 $ $ $ ‒‒‒ --- T 0 0 0 0 0 0 0 Next $ 70,000 54,000 4,400 46,000 7,400 36,000 40,000