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solmaris [256]
3 years ago
5

At the end of the year, assume the balance of Inventory is $109,225 and physical inventory on hand is $106,320. The adjusting jo

urnal entry to record shrinkage will be:_______
a. a $215,545 debit to Cost of Goods Sold and a $215,545 credit to Inventory.
b. a $109,225 debit to Inventory and a $109,225 credit to Cost of Goods Sold.
c. a $2,905 debit to Cost of Goods Sold and a $2,905 credit to Inventory.
d. a $2,905 debit to Inventory and a $2,905 credit to Cost of Goods Sold.
Business
1 answer:
xxMikexx [17]3 years ago
8 0

Answer:

The answer is C. a $2,905 debit to Cost of Goods Sold and a $2,905 credit to Inventory

Explanation:

Here, the physical inventory which is a current asset is lower than the inventory balance in the book. This can happen as a result of theft or error in filling the book.

The reality should be considered. The value of inventory($109,225) on the book balance should be reduced to the value of physical cash($106,320).

The difference should be calculated. The difference here is $2,905

So we debit cost of goods with this value and credit physical inventory on hand.

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Pappy's Toys makes two models of a metal toy—Standard and DeLuxe. Both models are produced on a single machine. The price and co
Molodets [167]

Answer:

a) it will do 210,000 units of standard

b) 127,500 units of standard

     19,000 units of deluxe

Explanation:

         Standard   Deluxe

Sales                      115        135

Variable Cost      50         54

CM                            165         189

Constrain resource     0.5                1.5

   (machine hours)

CM per constrain  330.00    126.00

a)

As the company can use up to 105,000 machine hours It will use as much as it can in doing Standard model which yield a better contribution of the constrain resource.

105,000 machine hours available / 0.5 hours per standard unit = 210,000 units

As there are 230,000 untis available for Standard we can use the entire capacity for standard and achieve the maximum contribution

b) as there isn't enough demand for standard the compay will do the 127,500 and the rest fill it with deluxe:

105,000 hours - 127,500 x 0.5 = 28,500 hours for deluxe

28,500 / 1.5 hours per unt = 19,000 units for deluxe

3 0
3 years ago
Compared to a short-term investment, what is the general return of a long-term investment? A) A long-term investment has a simil
slavikrds [6]

Let understand that "short-term investment" are investments that can be easily converted to cash and has a maturity period of less than a year. Example of this investment are Money Market.

"Long term investment" are investment that runs over a long period of time and yield higher return than the short-term investment". Example of these investment are stocks, bonds, real estate

  • People invest in "Long term investment" because its offers more risk for higher rewards.

In conclusion, long-term investment has a greater return because it has greater risk.

Learn more about this here

<em>brainly.com/question/17681451</em>

8 0
3 years ago
The accountant for Main Street Jewelry Repair Services, Inc. forgot to make an adjusting entry for Depreciation Expense for the
charle [14.2K]

Answer:

C) Total assets are overstated.

Explanation:

The journal Entry for the Depreciation is as follows:

Dr. Depreciation Expense          xxx

Cr. Accumulated Depreciation   xxx

By missing this Journal entry the Accumulated depreciation account will be understated as we know that this is a contra asset account and this will net off the Long term assets. So, as a result the total asset will be overstated.

8 0
3 years ago
When the price of a bond is above the equilibrium price, there is excess ___ in the bond market and the price will ___.
Setler [38]
C. When price is too high, people are less willing to purchase the good, so demand is lower when price is higher. (Demand curve is always slopping downwards as a result). As the price is high, producers are more willing to sell their goods (I.e. bonds) which will give them more money per unit good being sold. This will result in Quantity Supplied (Qs) being greater than Quantity Demanded (Qd), and so, there is a surplus of bonds in the market. This will cause a downward pressure to apply on price, so that Qd = Qs eventually.

Hope this helps!
8 0
3 years ago
Formulating Financial Statements from Raw Data
Tpy6a [65]

Solution:

General Mills, Inc., Income statement for year ended May 25, 2003

Particulars                                               Millions $

Revenue                                                $10,506

Less Cost of goods sold                       - 6,109

                                                            ----------------

Gross profit                                            4,397

                                                            ----------------

Less operating expenses                     - 3,480

                                                            -----------------

                                                                  917

                                                             -----------------

Balance sheet May 25, 2003

Assets             Million $            Liabilities                             Million $

Cash                  703                 Total Liabilities                      13,752

Non cash           17,524            Stockholders' equity              4,475

Total assets       18,227             Total Liabilities & equity       18,227

Statement for cash flows for year ended May 25, 2003

            Particulars                                                     Million $

    Cash from operating activities                                 1,631

    Cash from financing activities                                 - 885

    Cash from investing activities                                 - 1,018

                                                                                    --------------

   Net change in cash                                                      -272

                                                                                    ----------------

   Cash, beginning year                                                   975

                                                                                     -----------------

                                                                                           703

A negative amount for cash from financing activities reflects the reduction of long term debt

                   Profit margin = ( Net income / Revenue ) * 100

                                         = ( 917 / 10,506 ) * 100

                                         = 8.72%

                   Asset turnover = Revenue / total assets

                                             = 10,506 / 18, 227

                                             = 0.57

                  Return on assets =( Net income / Total assets ) * 100

                                                = ( 917 / 18, 227 ) *100

                                                = 5.03%

                  Return of equity = ( Net income / Total shareholder equity )*100

                                               = ( 917 / 4,475 ) *100

                                               = 20.49%

4 0
3 years ago
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