Answer:
Net income after adjustment $225,000
Explanation:
The various adjustments are effected below:
$ Note
Net income before adjustment 232,500
Depreciation (4,400) 1
Rental income 910 2
Supplies (310) 3
Fees earned <u> (3,700) </u> 4
Net income after adjustment <u>225,000</u>
Notes
1 Depreciation represents a consumption of asset hence it is an expense which reduces profit .So, it deducted
2. Rental income accrued implies income earned but not received. So we need to record it for the period it was earned, hence we add it.
3. Supplies used represents consumption of assets, i.e an expense. So, we deduct it from the income.
4. The income received in advance represents unearned income . This would be deducted from the net income
Answer:
d
Liabilities are what someone owes and assets are what someone owns and is worth something. The house is an asset and the car loan is a liability. According to the numbers provided the assets have an increase of $6,000 with +10,000 from the house and -4,000 from the car. And liabilities had a decrease of $25,500 with a -$29,000 from mortgage and car loans and a +3,500 from the savings account and debt. So assets increase and liabilities decrease.
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Answer: 0
Explanation:
Firstly, we will calculate the nominal value in 2015 which will be:
= $500 x 1 million
= $500 million
The nominal value in 2016 will be:
= $1000 x 1 million
= $1 billion
Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:
= $500 million x 1 million sets
= $500 million
Therefore, the increase in real GDP is zero.
Answer:
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