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
ICE Princess25 [194]
3 years ago
15

You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains t

hese selected balances at March 31, 2022. Supplies $4,600 Prepaid Insurance 7,500 Notes Payable 21,000 You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,500.
2. There were $530 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.
4. The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.
5. Wage expense totals $270 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 8% note dated January 1, 2022.
Business
1 answer:
Greeley [361]3 years ago
3 0

Answer:

rent revenue 21,500 debit

  unearned revenue  21,500 credit

--to amend incorrect recognition of revenue--

Supplies expense  4,070 debit

              Supplies          4,070 credit

--to record use of supplies--

Insurance expense  1,875 debit

              Prepaid Insurance 1,875 credit

--to record use of supplies--

advertizing expense 150 debit

repair expense        1050 debit

utilities expense       200 debit

    account payable           1,400 credit

--to record accrued expenses--

wages  expense   810 debit

   wages payable       810 credit

--to record accrued wages--

interest expense 420 debit

  interest payable    420 credit

--to record accrued interest--

Explanation:

#1 unearned revenue

The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.

#2 Supplies adjustment:

Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense

#3 expired insurance:

value per month: $7,500 / 12 months = 625

month expired between Jan 1st and March 31st: 3

total value f expired insurance: $625 per month x 3 month = 1,875

#4 accured expenses concetps were incurred and we most recognize them

#5 each day $270 times 3 days accrued = 810 total wages accrued

#6 accrued interest expense: principal x rate x time

$21,000 x 0.08 x 3/12 = $420

You might be interested in
Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchas
gladu [14]

Answer:

a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.

b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.

b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.

c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

Explanation:

a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?

Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real *  (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400

b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?

b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real *  (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800

b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real *  (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?

c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real *  (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400

c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real *  (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

6 0
3 years ago
costs that a firm remaining in business will still incur even if it halts current production are called
vekshin1
They are “fixed costs”
3 0
3 years ago
Your uncle is offering to sell you his T-shirt printing business for $1M. You think a multiple of 10X earnings (profit) is fair.
Archy [21]
No because it is to expensive and the modern outfits are changing relatively quickly
8 0
2 years ago
The term Blank______ is difficult to define and apply to products, and one can think about it from an organizational, consumer,
Sliva [168]

<em>It can be </em><em>challenging to define and apply the term "new" </em><em>to items. One can consider it from an</em><em> organizational, consumer, or even legal standpo</em>int.

<h3>The meaning of "new product"</h3>

"New products" can include items that have never been produced or sold by your company previously but have been introduced to the market by others. new product innovations developed and released to the market. They could be wholly original works or previously released works that you have improved and updated.

<h3>What is a new to the company product?</h3>

Products that are new to the company, meaning that while other companies may have created or sold them before, the company has never done so. Products that have just entered the market and have never before been available there

learn more about new to the company product here <u>brainly.com/question/14094175</u>

<u>#SPJ4</u>

6 0
2 years ago
Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods sold. Cost of goods sold for Feb
Law Incorporation [45]

Answer:

Purchases for February would be: $46,500

Explanation:

Prepare a Purchases Budget to find the Purchases for February.

<u>Purchases Budget for February</u>

Budgeted Cost of Sales                                                    $45,000

Add Budgeted Closing Inventory ($45,000 × 30%)         $13,500

                                                                                           $58,500

Less Budgeted Opening Inventory                                 ($12,000)

Budgeted Purchases                                                         $46,500

5 0
3 years ago
Other questions:
  • The size of a loan and its issuance costs​ (as a percentage of the amount​ borrowed) are​ ________.
    13·1 answer
  • You are waiting in the lobby of the office of your dream job. you brought along your resume, and a portfolio of work to demonstr
    15·1 answer
  • If real GDP declines in a given year, nominal GDP _____. rev: 04_09_2018 Multiple Choice must also be increasing may either rise
    8·1 answer
  • At age 55, Ellen separated from service with her former employer. She rolled over $19,000, the entire balance of her 401(k), int
    10·1 answer
  • England Productions performs London shows. The average show sells 1,300 tickets at $60 per ticket. There are 150 shows a year. N
    5·1 answer
  • I LOVE WYBIE oml oml oml
    8·2 answers
  • Amy transfers property with a tax basis of $970 and a fair market value of $650 to a corporation in exchange for stock with a fa
    6·1 answer
  • Your hypothesis is that "Quarterly maintenance of plant machinery will reduce the number of product defects except when worker r
    15·1 answer
  • Loudon Company has the following unit costs: direct materials $6, direct labor $3, variable overhead $2, fixed overhead $1. Unde
    13·1 answer
  • rose ordered a package of macaroons from an out of state bakery. she received the cookies the following week. what type of e-com
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!