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Zielflug [23.3K]
1 year ago
12

The characteristic that a new accounting standard should not favor one group of companies over others or achieve a particular so

cial outcome is an example of:_________
Business
1 answer:
Aleks04 [339]1 year ago
7 0

Neutrality is the characteristic that a new accounting standard should not favor one group of companies over others or achieve a particular social outcome. Because management wants to see the company grow, financial statements created by the corporation are by definition slightly skewed. This implies that they are more likely to indicate improved performance while omitting to disclose negative incidents.

Management must produce entirely objective financial accounts in order to be neutral. For instance, a business that has knowledge of a potential lawsuit must record it in its financial statement notes. The financial statements would become unreliable in the eyes of creditors and outside investors if this information were withheld.

#SPJ4

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Tore Company's records reveal the following information regarding its inventory. Beginning inventory was $100,000 at cost and 16
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Answer:

$150,000

Explanation:

Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation,

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Beginning Inventory = $160,000 in retail

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Cost of goods sold = $500,000

So, End Inventory = 160,000+500,000+10,000-500,000

End Inventory = $150,000

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3 years ago
What is the purpose of checks and balances in the constitution?
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On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance repres
shepuryov [24]

Missing information:

Karla Tanner opens a web consulting business called Linkworks and recorded the following transactions in its first month of operations.

Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.

Apr. 2 The company prepaid $9,000 cash for twelve months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.

Apr. 6 The company completed services for a client and immediately received $4,000 cash.

Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days.

Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3.

Apr. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9.

Apr. 25 The company completed work for another client for $2,890 on credit.

Apr. 28 The company paid $5,500 cash in dividends.

Apr. 29 The company purchased $600 of additional office supplies on credit.

Apr. 30 The company paid $435 cash for this month’s utility bill.

Journalize, and prepare income statement and balance sheet

Answer:

Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.

Dr Cash 80,000

    Cr Common stock 80,000

Apr. 2 The company prepaid $9,000 cash for twelve months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Dr Prepaid rent 9,000

    Cr Cash 9,000

Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.

Dr Equipment 8,000

Dr Supplies 3,600

    Cr Accounts payable 11,600

Apr. 6 The company completed services for a client and immediately received $4,000 cash.

Dr Cash 4,000

    Cr Service revenue 4,000

Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days.

Dr Accounts receivable 6,000

    Cr Service revenue 6,000

Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3.

Dr Accounts payable 11,600

    Cr Cash 11,600

Apr. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Dr Prepaid insurance 2,400

    Cr Cash 2,400

Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9.

Dr Cash 4,400

    Cr Accounts receivable 4,400

Apr. 25 The company completed work for another client for $2,890 on credit.

Dr Accounts receivable 2,890

    Cr Service revenue 2,890

Apr. 28 The company paid $5,500 cash in dividends.

Dr Dividends 5,500

    Cr Cash 5,500

Apr. 29 The company purchased $600 of additional office supplies on credit.

Dr Supplies 600

    Cr Accounts payable 600

Apr. 30 The company paid $435 cash for this month’s utility bill.

Dr Utilities expense 435

    Cr Cash 435

Adjusting entries:

a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space.

Dr Rent expense 750

    Cr Prepaid rent 750

b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.

Dr Insurance expense 200

    Cr Prepaid insurance 200

c) Office supplies on hand as of April 30 total $1,200.

Dr Supplies expense 3,000

    Cr Supplies 3,000

d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month.

Dr Depreciation expense 500

    Cr Accumulated depreciation - equipment 500

e) The company has completed work for a client, but has not yet billed the $1,800 fee.

Dr Accrued income 1,800

    Cr Service revenue 1,800

f) Wages due to employees, but not yet paid, as of April 30 total $2,600.

Dr Wages expense 2,600

    Cr Wages payable 2,600

                 Linkworks

            Income Statement

For the month ended April 30th, 202x

Service revenue             $14,690

Wages expense             ($2,600)

Supplies expense          ($3,000)

Depreciation expense      ($500)

Insurance expense           ($200)

Rent expense                    ($750)

<u>Utilities expense               ($435)</u>

Net income                      $7,205

retained earnings = $7,205 - $5,500 (dividends) = $1,705

                   Linkworks

               Balance Sheet

For the month ended April 30th, 202x

Assets:

Cash $59,465

Accounts receivable $4,490

Accrued income $1,800

Prepaid rent $8,250

Prepaid insurance $2,200

Supplies $1,200

Equipment net $7,500

Total assets: $84,950

Liabilities and stockholders' equity:

Accounts payable $600

Wages payable $2,600

Common stock $80,000

Retained earnings $1,705

Total liabilities and stockholders' equity: $84,905

3 0
3 years ago
Goodman Auto started the year with total assets of $300,000 and total liabilities of $175,000. During the year, the business rec
kow [346]

Answer:

The answer is $ 200,000

Explanation:

The net income reported by Goodman Auto for the year was,$475,000 - $275,000 = $ 200,000.

The net income is difference between revenue earned by the company and expenses incurred in order to earn this revenue. In the problem goodman auto revenue is equal to 475,000 and expense are 275,000. So the difference between 475,000 and 275,000 will be reported as net income.

5 0
3 years ago
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