1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
11111nata11111 [884]
3 years ago
8

What effect will this adjustment have on the accounting records?

Business
1 answer:
12345 [234]3 years ago
6 0

Answer:

a.Increase Net Income

Explanation:

Unearned Revenue

The Accrual Principle requires Incomes and expenses to be recorded in the period they occur or incur.

Revenue not earned has not yet occurred and can not be recognized hence no effect on revenues reported for the period.

Fees earned

Fees earned represents increases in economic benefits from non primary activities of the company.

This has the overall effect of increasing Net income in the reporting period

You might be interested in
Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been s
patriot [66]

Answer:

can return the bracelet and get her money back

Explanation:

Minors have a restriction on the products that they can. To purchase these products they must have consent of their parent or guardian.

An identity card is required to determine the age of the buyer to avoid wrong sales to minors.

Items prohibited from sale to minors include: alcohol, tobacco, petrol, offensive weapons, intoxicating substances, and expensive jewelry.

So in this scenario since due diligence was not carried out by the store to check Heather's age on purchase, she can return the diamond bracelet and get back her money.

This was an illegal sale.

3 0
3 years ago
The following information is related to Kingbird Company for 2017.
Sati [7]

Answer:

Net income is $2,474,000

Retained earning for the year 2017 is $2,142,000

Retained earnings balance at December 31, 2017 is $3,123,000

Explanation:

A multi-step income statement is an income statement that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income of a company for a particular period.

This can be prepared as follows:

Kingbird Company

Mutiple step income statement

for the year ended December 31, 2017

<u>Details                                                                  $         </u>

Sales Revenue                                           26,100,000

Cost of goods sold                                  <u>  (16,100,000) </u>

Gross profit                                                10,000,000

Operating expenses:

Selling and administrative expenses      <u>  (4,710,000) </u>

Operating income                                       5,290,000  

Other income (loss):

Gain on the sale of investments                     111,000

Write-off of goodwill                                      (821,000)

Loss due to flood damage                            (391,000)

Interest income:

Interest revenue                                          <u>     71,000  </u>

Income before tax                                       4,260,000

Income taxes for 2017                              <u>  (1,254,000) </u>

Income after tax                                          3,006,000

Extraordinary items:

Loss on wholesale div. disp. (net of tax)      (441,000)

Loss on wholesale div. op. (net of tax)       <u>   (91,000) </u>

Net income                                                   2,474,000

Preferred stock dividend                                (81,000)

Common stock dividend                           <u>     (251,000) </u>

Retained earning for the year 2017             2,142,000

Retained earnings balance, Jan. 1, 2017   <u>     981,000 </u>

Retained earnings bal., Dec. 31, 2017       <u> 3,123,000 </u>

8 0
3 years ago
Prior to the write off of a $500 customer account, Athena Company had the following account balances: Accounts receivable $19,60
Effectus [21]

Answer:

Net accounts receivable Before $18,600 and  After $18,600

Explanation:

solution

we know that here

net accounts receivable before write-off  

Accounts Receivable = $19,600  

and Allowance for doubtful debt = $1,000

so Net accounts receivable =  $19,600 - $1,000 =  $18,600

so

Journal Entry for write off is here    

Allowance for doubtful Accounts = $500

Accounts Receivable = $500

and

Net accounts receivable after write off is    

Accounts Receivable= $19,100

and

Allowance for doubtful debt= $500  

so Net accounts receivable = $19,100 - $500

Net accounts receivable = 8,600

so Net accounts receivable Before $18,600 and  After $18,600

6 0
3 years ago
A coffee shop buys 2000 bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $12
aleksley [76]

Solution :

The optimal order quantity, EOQ = $\sqrt{\frac{2 \times \text{demand}\times \text{ordering cost}}{\text{holding cost}}}$

EOQ = $\sqrt{\frac{2 \times 2000 \times 12}{3.6}}$

        = 115.47

The expected number of orders = $\frac{\text{demand}}{EOQ}$

                                                      $=\frac{2000}{115.47}$

                                                      = 17.32

The daily demand = demand / number of working days

                               $=\frac{2000}{240}$

                              = 8.33

The time between the orders = EOQ / daily demand

                                                 $=\frac{115.47}{8.33}$

                                                  = 13.86 days

ROP  = ( Daily demand x lead time ) + safety stock

        $=(8.33 \times 8)+10$

         = 76.64

The annual holding cost = $\frac{EOQ}{2} \times \text{holding cost}$

                                         $=\frac{115.47}{2} \times 3.6$

                                         = 207.85

The annual ordering cost = $\frac{\text{demand}}{EOQ} \times \text{ordering cost}$

                                           $=\frac{2000}{115.47} \times 12$

                                           = 207.85

So the total inventory cost = annual holding cost + annual ordering cost

                                            = 207.85 + 207.85

                                            = 415.7

6 0
2 years ago
Ramesh works in a small civil-society organization with the mission to fight child labor in india. His organization has identifi
-Dominant- [34]

"A multinational organization known for responsible labor standards" has the most adequate resources to collaborate with Ramesh in the achievement of this goal.

Child labor alludes to the work of kids in any field that denies kids of their rightful childhood, meddles with their capacity to go to school, and that is rationally, physically, socially or ethically risky and destructive. This is viewed as exploitative by numerous global associations.  

6 0
3 years ago
Other questions:
  • When a tax is placed on the sellers of a product, buyers pay _ and sellers receive _ than they did before the tax?
    14·1 answer
  • Arbitration is a noncoercive method of resolving a dispute between employer and union.
    10·1 answer
  • In 1971, nixon imposed wage and price controls in an effort to curb inflation.
    12·1 answer
  • Payday loans could be considered
    9·1 answer
  • At a rate of 6.5%, what is the future value of the following cash flow stream?
    11·1 answer
  • What evidence indicated throughout the 1920s that the economy was not as healthy as most believed? why weren’t these weaknesses
    7·1 answer
  • According to Maria Halmo, what is the most important aspect of managing finances?
    7·1 answer
  • Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allow
    6·1 answer
  • Cheyenne Corp. had the following transactions during 2017:
    8·1 answer
  • Sexton, Corp., has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 860 $ 940 $ 900 $ 1,000 Sales in the y
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!