Answer:
$2,217,777.78
Explanation:
The computation is shown below:
The accumulated depreciation amount till 31 Dec 2013
= ($2,800,000 - $180,000) ÷ 9 × 2
= $582,222.22
Now the expenses recorded as the purchase is $2,800,000
so,
The Retained earnings understated by
= $2,800,000 - $582,222.22
= $2,217,777.78
Owning you're on the hydroelectric power station.
Answer:
Gwinnett's profits for the year will decrease by $1,000
Explanation:
total costs for normal 14,000 cases:
- Variable manufacturing cost $294,000 / 14,000 = $21 per case
- Fixed manufacturing cost $56,000
- Variable selling and administrative cost $42,000
- Fixed selling and administrative cost $38,000
- total = $430,000
the incremental revenue of selling 1,000 cases to the school district = $23 x 1,000 = $23,000
the incremental costs for producing and selling 1,000 more cases:
- variable manufacturing costs = $21 x 1,000 = $21,000
- variable S&A costs = $3 x 1,000 = $3,000
- total incremental costs = $24,000
incremental revenue - total incremental costs = $23,000 - $24,000 = -$1,000
Answer:
The cash collection on September 9 is records by the entry:
Debit Cash $5,300
Credit Accounts Receivable $5,300
Explanation:
Barnes Books allows for possible bad debts. On May 7, the company writes off a customer account. The journal entry:
Debit Allowance for Doubtful Accounts $5,300
Credit Accounts Receivable $5,300
On September 9, the customer unexpectedly pays the $5,300 balance. The journal entries:
1. Debit Accounts Receivable $5,300
Credit Allowance for Doubtful Accounts $5,300
2. Debit Cash $5,300
Credit Accounts Receivable $5,300
