C usually when they are put to a boil.
Answer:
The answer is: C) $14,000
Explanation:
ABC Tax Planning Services paid six months of rent in advance, from January to July. It spends $7,000 per month on rent, so the six months prepaid rent would be $42,000. On April 30, 2018, ABC had already rented the offices for 4 months, so it had only two months left in its Prepaid Rent account, equivalent to $14,000 (2 x $7,000).
Answer:
b. 2018 net income is overstated by $750
Explanation:
As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.
Also we can deduct the same logic considering the accounting equation
Assets = liab + equity
if asssets are 750 higher than it should, then Equiy is higher as well
+750 = +750
Equity is affected for the net income and dividends. Thus, we can also conclude the net income is overstated by 750
Answer:
I believe all of the above
Explanation:
went with what came to mind if its wrong very sorry.
Answer:
(a) $40
(b) $24,000
(c) 40%
Explanation:
Given that,
Selling price = $100 per unit
Variable costs = $60 per unit
Fixed costs = $2,500 per month
Contribution margin per unit:
= Selling price - Variable costs
= $100 per unit - $60 per unit
= $40
Total Contribution margin:
= Contribution margin per unit × No. of units sold
= $40 × 600 units
= $24,000
Contribution margin ratio:
= (Selling price - Variable costs) ÷ Selling price
= ($100 per unit - $60 per unit) ÷ $100 per unit
= 0.4 or 40 %