very much indeed. thanks for the points
Answer:
Option (b) $30,000
Explanation:
Data provided in the question:
shares of common stock issued @ $7 per share = 10,000
shares of common stock issued @ $8 per share = 20,000
Net income = $100,000
Dividend paid = $50,000
Number of treasury stocks purchased = 3,000
Price per stock of treasury stocks = $10
Now,
The balance in the Treasury Stock account at the end of 2021
= Number of treasury stocks purchased × Price per stock of treasury stocks
= 3,000 × $10
= $30,000
Hence,
Option (b) $30,000
Answer:
e. $4,500
Explanation:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $3,000
2 $4,000 $2,000
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000
This means that year 2's net income was understated by $5,000.
But year 1's net income was overstated by = $2,500 - $3,000 = -$500.
The adjustment on the retained earnings account should be $5,000 - $500 = $4,500
Answer:
$83,000
Explanation:
Calculation to determine How much is the adjusted cash balance per books on December 31?
Balance per books on Dec. 31, $82,600
Add Note collected by the bank including interest $2,000
Less Bank service charge ($50)
Less NSF check ($650)
Less Book error ($900)
($1000-100)
Adjusted cash balance per books $83,000
Therefore the adjusted cash balance per books on December 31 is $83,000
Answer:
1.Predetermined overhead allocation rate = $2.10 per Machine Hour
2.Overhead allocated = $10,605
Explanation:
1. Predetermined overhead allocation rate
using
Estimated manufacturing overhead costs / Estimated Machine Hours = Predetermined overhead allocation rate
=<u>$9,450</u> / <u>4,500 Machine Hours</u> = $2.10 per machine hour
Therefore,
Predetermined overhead allocation rate = $2.10 per Machine Hour
2. Manufacturing overhead allocated during the year
Actual Machine Hours Used x Predetermined overhead allocation rate = Overhead allocated
<u>5,050 machine hours</u> x <u>$2.10 per Machine Hour </u>=<u> $10,605
</u>
Therefore,
Overhead allocated = $10,605