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
Shtirlitz [24]
3 years ago
13

During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021,

you discover the following:
a. An insurance policy covering three years was purchased on January 1, 2021, for $6,600. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.
b. During 2021, the company received a $850 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $850 was credited to sales revenue. No entry was recorded for the cost of merchandise.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $900 were on hand at December 31.
d. Hales borrowed $25,000 from a local bank on October 1, 2021. Principal and interest at 12% will be paid on September 30, 2022. No accrual was recorded for interest.
e. Net income reported in the 2021 income statement is $40,000 before reflecting any of the above items.

Required:
Determine the proper amount of net income for 2021.
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

adjusting entries:

a. An insurance policy covering three years was purchased on January 1, 2021, for $6,600. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.

Dr Prepaid insurance 4,000

    Cr Insurance expense 4,000

b. During 2021, the company received a $850 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $850 was credited to sales revenue. No entry was recorded for the cost of merchandise.

Dr Sales revenue 850

    Cr Unearned revenue 850

c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $900 were on hand at December 31.

Dr Supplies 900

    Cr Supplies expense 900

d. Hales borrowed $25,000 from a local bank on October 1, 2021. Principal and interest at 12% will be paid on September 30, 2022. No accrual was recorded for interest.

Dr Interest expense 750

    Cr Interest payable 750

e. Net income reported in the 2021 income statement is $40,000 before reflecting any of the above items.

net income after adjustments = $40,000 + $4,000 - $850 + $900 - $750 = $43,300

You might be interested in
A business should have separate accounts for recording revenue and expenses
Dmitriy789 [7]

Answer:

A business should have separate accounts for recording revenue and expenses. Expenses have the opposite effect from revenue on the capital account. Temporary capital accounts are extensions of the owner's capital account. ... Revenues increase owner's equity, and increases in revenues are recorded as debits.

pls  mark me the brainliest

3 0
2 years ago
What are some things you want money can buy
Helen [10]

Answer:

I want a new car and a home.

Explanation:

6 0
2 years ago
Explain the teams and conflict in organization
zzz [600]

\:  \:  \:  \:  \:  \:  \:

<h2><u>arise when there are disagreements over their goals, methods or needs of the team. </u></h2>

  • <u>So </u><u>w</u><u>hen </u><u>the </u><u>conflicts </u><u>are </u><u>in </u><u>between </u><u>the </u><u>team </u><u>members </u><u>they</u><u> arise, addressing these disagreements and coming to a mutual </u><u>understanding </u><u>it </u><u> allows everyone to collaborate harmoniously and productively.</u>

<h2><u>hope</u><u> it</u><u> helps</u></h2>
7 0
2 years ago
Cho ví dụ môi trường kinh doanh ở các nước đầu tư
Snowcat [4.5K]

Answer:

???

Explanation:

3 0
2 years ago
Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a f
xxMikexx [17]

Answer:

The correct answer is b) a Ponzi scheme.

Explanation:

The Ponzi Scheme is a fraudulent investment operation that involves paying investors interest obtained from the money of new investors (and not from the generation of genuine profits). It is a pyramidal system, in which the only way to share benefits requires that participants recommend and capture (refer) to more clients with the objective that new participants produce benefits to primary participants.

This system does not invest in financial or other instruments, it only redistributes money from some investors to others, so the system works only if the number of investors in the pyramid continually grows; once people stop entering the "business", the scammer is prevented from fulfilling his promise and the pyramid collapses

7 0
3 years ago
Other questions:
  • Zokro, a nongovernmental not-for-profit organization, uses the indirect method to prepare its statement of cash flows. In determ
    9·1 answer
  • Although most alexandria staff are voracious readers, no one has read all of the books sold by alexandria and most know some are
    12·1 answer
  • Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owne
    14·1 answer
  • The _____ of an ad is defined as being the average number of times a person must see or hear a message before it becomes effecti
    7·1 answer
  • The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and
    5·1 answer
  • When does accrual basis accounting record a transaction?
    15·2 answers
  • Agreeable and adaptable employees are easy to
    6·2 answers
  • Which domain is the most common and reserved for commercial organizations and businesses?
    8·1 answer
  • Exercise 6-8 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $350 petty cash fund on September 9. On Septemb
    10·1 answer
  • Adams, Inc., is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued h
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!