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nevsk [136]
3 years ago
15

Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some inventory items, resulting in an in

ventory understatement by $670,000. Assume that Berkshire has a 35% income tax rate and that this was the only error it made. If undetected, what is the effect of this error on Berkshire's December 31,2017 balance sheet?
a. Assets understated by $670,000 and shareholders' equity understated by $670,000.
b. Assets understated by $435,500 and shareholders' equity understated by $435,500.
c. None of these answer choices are correct
d. Assets understated by $670.000, liabilities understated by $234,500 and shareholders' equity understated by $435,500
Business
1 answer:
ziro4ka [17]3 years ago
8 0

Answer:

d. Assets understated by $670.000, liabilities understated by $234,500 and shareholders' equity understated by $435,500

Explanation:

Assets in Inventory will be understated by $670.000, this will also understate the tax payable to authorities by $234,500 because profits will be understated and equity will be understated by $435,500.

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svet-max [94.6K]

Answer:

d. $6,120 U

Explanation:

Calculation to determine the materials price variance for the month

Using this formula

Materials price variance = (AQ × AP) – (AQ × SP)

Let plug in the formula

Materials price variance = $138,600 – (7,200 meters × $18.40 per meter)

Materials price variance = $138,600 – $132,480

Materials price variance = $6,120 U

Therefore Materials price variance is $6,120 U

6 0
3 years ago
Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Free trade has not produced al
iragen [17]

Answer:

Lowered, improved, increased, choice

Explanation:

Free trade has not produced all of the economic impacts that were originally predicted. At the same time, it is known that global shifts in production and trade have generally lowered consumer cost, improved company profits, and increased product choice.

3 0
3 years ago
What+is+the+required+monthly+payment+on+a+$350,000+mortgage?+assume+a+standard+mortgage+(360+months)+with+monthly+payments.+use+
notka56 [123]

Divide the hobby fee you're being charged by means of the number of bills you'll make each year, commonly twelve months. Multiply that discern with the aid of the initial balance of your loan.

Solution:

EMI or Equated monthly payment

= P x R x (1+R)^N]/[(1+R)^N-1]

Where,

P = Principal = $350,000

R = Monthly rate of interest = Annual rate / 12

= 6.9 %/ 12

= 0.575% or 0.00575

N = Number of installments = 360

So, EMI

= $350,000 x 0.00575 x [(1.00575) ^ 360] / [(1.00575) ^ (360-1)]  

= $350,000 x 0.00575 x 7.877979 / [7.877979 – 1]

= $2,305.

The monthly price is the quantity paid according to a month to pay off the loan within the term of the mortgage. while a mortgage is taken out it isn't always only the primary amount, or the authentic quantity loaned out, that wishes to be repaid, but additionally, the hobby that accumulates. Your month-to-month payment on a 600k loan could be $three,477. which is your general estimated monthly price which includes the most important interest, taxes, and loan coverage.

Disclaimer:- your question is not in a correct format, please see below for the correct question format.

What is the required monthly payment on a+$350,000 mortgage?assume a standard mortgage (360 months) with monthly payments.+use+a+nominal+rate+of+6.90%.

Learn more about Monthly payments here:-brainly.com/question/11965695

#SPJ4

4 0
1 year ago
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, th
dimulka [17.4K]

Answer:

The solution is shown in the file attached below

Explanation:

Download docx
8 0
3 years ago
On December 31, 2018, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu
Sunny_sXe [5.5K]

Answer:

$2,850

Explanation:

Given the following :

Face value of security = $100,000

Carrying value = $95,000

Effective interest rate = 6%

Interest paid semianually = $2500

The effective interest revenue recognized for the six months ended December 31, 2018 is:

IF effective interest rate = 6%

Semiannual interest = 6% / 2 = 3%

Therefore effective interest revenue for six months will be the product of the carrying value and the interest rate within the six months period :

3% = 0.03

0.03 * $95,000 = $2,850

3 0
3 years ago
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