Explain whether the fees income account is a permanent account or temporary account.

Question

Harvey’s Home Decor common stock is currently selling at $72.50 per share. The company follows a 65% dividend payout ratio and has a P/E ratio of 22. There are 50,000 shares of stock outstanding. What is the amount of the annual net income for the firm?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

g.

To determine

Explain whether cash account is a permanent account or temporary account.

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

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Harvey’s Home Decor common stock is currently selling at $72.50 per share. The company follows a 65% dividend payout ratio and has a P/E ratio of 22. There are 50,000 shares of stock outstanding. What is the amount of the annual net income for the firm?

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

g.

To determine

Explain whether cash account is a permanent account or temporary account.

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

g.

To determine

Explain whether cash account is a permanent account or temporary account.

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

g.

To determine

Explain whether cash account is a permanent account or temporary account.

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

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Answer 5

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

g.

To determine

Explain whether cash account is a permanent account or temporary account.

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

Answer 6

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

Answer 7

Chapter 3, Problem 11DQ

a.

To determine

Explain whether the fees income account is a permanent account or temporary account.

Answer 8

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

Answer 9

b.

To determine

Explain whether the J.J. drawing account is a permanent account or temporary account.

Answer 10

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

Answer 11

c.

To determine

Explain whether Accounts payable is a permanent account or temporary account.

Answer 12

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

Answer 13

d.

To determine

Explain whether accounts receivable is a permanent account or temporary account.

Answer 14

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

Answer 15

e.

To determine

Explain whether J.J. capital account is a permanent account or temporary account.

Answer 16

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

Answer 17

f.

To determine

Explain whether prepaid rent account is a permanent account or temporary account.

Answer 18

g.

To determine

Explain whether cash account is a permanent account or temporary account.

Answer 19

g.

To determine

Explain whether cash account is a permanent account or temporary account.

Answer 20

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

Answer 21

h.

To determine

Explain whether advertising expense account is a permanent account or temporary account.

Answer 22

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

Answer 23

i.

To determine

Explain whether utilities expense account is a permanent account or temporary account.

Answer 24

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

Answer 25

j.

To determine

Explain whether equipment account is a permanent account or temporary account.

Answer 26

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

Answer 27

k.

To determine

Explain whether salaries expense account is a permanent account or temporary account.

Answer 28

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

Answer 29

l.

To determine

Explain whether prepaid insurance account is a permanent account or temporary account.

Answer 30

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Answer 41

Ch. 3 - Increases are recorded on which side of asset,...Ch. 3 - What is a footing?Ch. 3 - Prob. 1.3SRQ Ch. 3 - Prob. 1.4SRE Ch. 3 - Prob. 1.5SRE Ch. 3 - Prob. 1.6SRA Ch. 3 - Prob. 2.1SRQ Ch. 3 - Prob. 2.2SRQ Ch. 3 - What is a trial balance and what is its purpose?Ch. 3 - Prob. 2.4SRE

Explain whether the fees income account is a permanent account or temporary account.

Solution Summary: The author explains whether the fees income account is a permanent account or temporary account.

Concept explainers

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Explain whether the fees income account is a permanent account or temporary account.

Explain whether the J.J. drawing account is a permanent account or temporary account.

Explain whether Accounts payable is a permanent account or temporary account.

Explain whether accounts receivable is a permanent account or temporary account.

Explain whether J.J. capital account is a permanent account or temporary account.

Explain whether prepaid rent account is a permanent account or temporary account.

Explain whether cash account is a permanent account or temporary account.

Explain whether advertising expense account is a permanent account or temporary account.

Explain whether utilities expense account is a permanent account or temporary account.

Explain whether equipment account is a permanent account or temporary account.

Explain whether salaries expense account is a permanent account or temporary account.

Explain whether prepaid insurance account is a permanent account or temporary account.

Chapter 3 Solutions