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BlackZzzverrR [31]
3 years ago
14

Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entr

y affect the accounting equation. Assume a December 31 closing date. The first event is recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)
1. Paid $6,300 cash in advance on April 1 for a one-year insurance policy.
2. Received a $15,300 cash advance for a contract to provide services in the future. The contract required a one-year commitment starting September 1.
3. Purchased $1,750 of supplies on account. At year’s end, $130 of supplies remained on hand.
4. Paid $6,300 cash in advance on March 1 for a one-year lease on office space.
Business
1 answer:
Tatiana [17]3 years ago
7 0

Answer:

1. Prepaid insurance (Dr.) $6,300

  Cash (Cr.) $6,300

2. Cash (Dr.) $15,300

   Unearned Income (Cr.) $15,300

3. Purchases (Dr.) $1,750

   Accounts payable (Cr.) $1,750

   Cost of Goods Sold (Dr.) $1,620

   Ending Inventory (Dr.) $130

   Purchases (Cr.) $1,750

4. Prepaid office rent (Dr.) $6,300

   Cash (Cr.) $6,300

Explanation:

The adjusting entry is a journal entry recorded at end of accounting period to adjust events or transactions to comply with the accrual concept.

The closing entries are journal entries required to close a transaction or event in the period. The purpose is to follow matching concept of accounting.

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A company produces 100 cars in the year 2017 but only manages to sell 90 of the cars. In the year 2018 they sell the 10 cars tha
forsale [732]

Answer:

The question has below options:

A. The unsold cars count as inventory investment for 2017. 2018 GDP is not affected.

B.The unsold cars count as consumption spending in 2018.

C. The unsold cars count in the inventory investment category for both years and count as consumption spending in 2018.

Option B is the correct answer

Explanation:

The unsold stock of 10 cars in 2017 is classified as investment  since  the cost of producing them is expected to yield returns in 2018 when they have been sold.

However, the unsold stock of 2017 becomes 2018 consumption of GDP since it relates to household expenditure in 2018, as a result it is accorded such classification.

It cannot be classified as government expenditure as the government is not the one purchasing the vehicle

Also, the ten cars have nothing to do with import or export as they are trade within the domestic economy

7 0
3 years ago
On March 15, a fire destroyed Blossom Company's entire retail inventory. The inventory on hand as of January 1 totaled $5300000.
Svet_ta [14]

Answer:

The value of inventory destroyed=$4,082,000

Explanation:

<em>The value of the inventory destroyed is the difference between the the cost of the total goods available for sale and the cost of goods sold</em>

The value of inventory destroyed = cost of goods available for sale - value of inventory sold

Cost of goods sold = 3540,000 - (20%×  3540,000)= 2,832,000

The cost of goods available for dale = opening inventory + purchases + freight charges

$5300000 + $1432000 +  $182000 = 6,914,000

The value of inventory destroyed = 6,914,000 - 2,832,000 = 4082000

The value of inventory destroyed=$4,082,000

7 0
2 years ago
Firms face competing pressures in the marketplace–how to achieve lower costs through proven approaches to production, while look
Solnce55 [7]

Answer:

1. Pressures for local responsiveness may make it difficult to ______________________________.

 

monitor and adapt to changing customer tastes in a large number of foreign markets

2. __________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Localization strategy

3. ___________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.

 

Transnational strategy

4. A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) _______________________.

international strategy

5. Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ________________________________.

orient their companies toward either a global standardization or transnational strategy  

Explanation:

When a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions, and internationally located subsidiaries or retail outlets, the entity tends to realize more competitive advantages than when it uses a single strategy.  This is why the transnational strategy is offering the best alternative for international businesses in the globalized economy.

7 0
3 years ago
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When selling convenience goods such as tobacco, newspapers, chewing gum, and potato chips to convenience stores, companies often
valentinak56 [21]

Answer: intensive distribution

                 

Explanation: In simple words, it refers to a marketing strategy under which a company offers its product through as many outlets as possible in the market so that customers can easily find their product when in need.

The core objective of implementing thus Strategy is to make customer satisfied regarding the availability. These strategy is implemented for the products that already have a strong customer base.

Hence from the above we can conclude that the correct option is B.

5 0
2 years ago
Which of the following is a correct statement about promoting energy conservation?
Paladinen [302]

Answer:

we need to know what the options are

Explanation:

4 0
2 years ago
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