Answer:
$20,000
Explanation:
When a financial statement analysis technique shows the changes of income statement or balance sheet items over the period of time with the same financial statements, it is called Horizontal Analysis. It shows the firm's capability of either increasing or decreasing of assets or expenses over the period. Here,
Balance Sheet
Account Title Year 1 Year 2 Changes (Increase/Decrease)
Cash $20,000 $40,000 $20,000 Increase
Answer:
1. Debit Utilities Expense $215; credit Accounts Payable $215.
Explanation:
The adjusting entry is as follows
On December 31
Utilities Expense A/c Dr $215
To Accounts Payable A/c $215
(Being the accrued utilities expense is recorded)
Since the utility is an expense so it would be debited to the utility expense and the payment is not made till yet that would become a liability so we credited the account payable
Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
The right answer for the question that is being asked and shown above is that: "decrease." If the price of butter increases, then the demand for margarine will likely <span>decrease. The answer is correct as far as the price of the butter increases.</span>
Answer:
2021 understated by $3,060
2022 overstated by $3,060
Explanation:
<u>June 30, 2021</u>
DEBIT CREDIT
Note receivable $68,000
Sales $68,000
<u>Dec 31, 2021</u> (July 1, 2021 to Dec 31 2021)
DEBIT CREDIT
Interest receivable $3060
Interest Income $3060
Working = 68,000 x 9% x6/12 = $3060
<u>March 31, 2022</u>
DEBIT CREDIT
Cash 72,590
Interest receivable 3,060
Interest income 1,530
Note Receivable 68,000
Working = 68000 x 9% x 3/12 = 1,530
2021 income will be understated by $3,060 if adjusting entry is not prepared and revenue is not recognized
2022 income will be overstated by $3,060
