Answer and Explanation:
The computation is shown below
1. The adjusted balance in the retained earning is shown below:
= beginning balance of retained earning + adjusted net income
where,
beginning balance of retained earning is $860,000
And, the adjusted net income is
= $68,000 × (1 - 0.35)
= $44,200
So, the adjusted balance in the retained earning is
= $860,000 + $44,200
= $904,200
2. Now the journal entry is
Inventory $68,000
To Retained earning $44,200
To Tax payable $23,800 ($68,000 × 35%)
(Being the adjustment of ending inventory is recorded)
It increased the inventory and along with it it also increased the equity and liabilities so the respective account is debited and credited
Answer:
$6,500 was distributed to preferred shareholders
Explanation:
Dividend distributed to preferred share is based on the predetermined rate associated with these share. When the dividend is declared preferred share dividend is paid first. The remainder is distributed between the common stockholders.
Value of Preferred share = 8000 shares x $10 par value = $80,000
Preferred Dividend = $80,000 x 5% = $4,000
Accrued dividend of 2016 = $4,000 - $1500 = $2500
Total Dividend Accrued = $2,500 + $4,000 = $6,500
Answer:
c. Increase of $192,500
Explanation:
Note: The full question is attached
Particulars Luxury Amount$
Sales $950,000
(380000*250/100)
Less: Variable cost $612,500
(245000*250/100
) <u> </u>
Total contribution $337,500
Less: Fixed expenses <u>$80,000 </u>
Net Operating Income <u>$257,500</u>
Change in Operating Income = New Profit - Existing profit = $257,500 - $65,000 = $192,500
Hence, there is an increase of $192,500
Answer:
Price decreases and demand increases
Explanation:
After achieving a required profit, stores usually start to sell their products on sale. A sale is an opportunity for the buyers to buy goods and services at low prices. Price and demand have an inverse relationship, that is why, on sale, the price decreases and moves the point down, whereas, the increase in the demand moves the point up.
Answer:
d. All of the above
Explanation:
Every workplace has its written and unwritten rules, regulations, and social conventions.
Staying up late which would make an employee sluggish at work, choosing to wear pajama pants in a formal office meeting, and inviting loud and rowdy friends to your workplace would definitely have a negative effect on one's job because those decisions and behavior are unprofessional.