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BartSMP [9]
3 years ago
5

A reversing entry is the exact opposite of an adjusting entry made in a previous period. is made when a business disposes of an

asset it previously purchased. is made when a company sustains a loss in one period and reverses the effect with a profit in the next period. reverses entries that were made in error.
Business
1 answer:
Ulleksa [173]3 years ago
7 0

Answer: A reversing entry: <em><u>"is the exact opposite of an adjusting entry made in a previous period.".</u></em>

<em><u /></em>

Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.

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Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, th
Ber [7]

Answer:

Incentive Corporation

A. Assets = Liabilities + Stockholders’ Equity

a. Assets (Cash +$129,600 )= Liabilities + Stockholders' Equity (Common stock +$5,400 and Additional Paid-in Capital $1124,200)

b.  Assets (Cash +$37,800 )= Liabilities + Stockholders' Equity (Common stock +$1,400 and Additional Paid-in Capital $36,400)

B. Journal Entries:

Debit Cash $129,600

Credit Common stock $5,400

Credit APIC $124,200

To record the issuance of 5,400 shares of common stock for cash at $24.

Debit Cash $37,800

Credit Common stock $1,400

Credit APIC $36,400

To record the issuance of 1,400 shares of common stock for cash at $27.

C. Journal Entries:

1. Debit Cash $107,100

Credit Common stock $10,200

Credit APIC $96,900

To record the issuance of 5,100 common stock shares with $2 par value  for $21 per share.

2. Debit Cash $26,400

Credit Common Stock $2,200

Credit APIC $24,200

To record the issuance of 1,100 common stock shares with $2 par value for $24 per share.

3. Stockholders' Equity

INCENTIVE CORPORATION

Balance Sheet (Partial)

At December 31

Stockholders’ Equity

Contributed Capital:

Common Stock                       $6,200

Additional Paid-in Capital       121,100

Total Contributed Capital   $127,300

Net income                                  200

Total Stockholders’ Equity $127,500

4. The maximum amount of cash dividends that Incentive Corporation can declare and distribute is $200, despite having $49,000 in the bank account.

Explanation:

a) Data and Calculations:

Authorized shares, 12,000 of common stock at $1 par value

Net income at year-end = $200

Cash balance at bank = $49,000

Transactions:

Cash $129,600 Common stock $5,400 APIC $124,200

Cash $37,800 Common stock $1,400 APIC $36,400

b) Transactions:

1. Cash $107,100 Common stock $10,200 APIC $96,900

2. Cash $26,400 Common Stock $2,200 APIC $24,200

5 0
3 years ago
Many countries engage in trade protection by imposing import tariffs or quotas for at least some goods. this is because:
kobusy [5.1K]
I think the answer here would be D
6 0
3 years ago
A company that uses a job order costing system would make the following entry to record the flow of direct materials into produc
jonny [76]

Answer:

debit Work in Process Inventory, credit Raw Materials Inventory.

Explanation:

For reasons of accounting principles, the physical inventory must have priority to that of the continuous method; since the first constitutes information of greater objectivity and can therefore serve as a reference point to determine if there are missing or surpluses in the inventories, which after being well purified, can be adjusted through the cost of sale account and the inventory account accordingly if the permanent inventory turns out to be greater than the physical one, the cost of sale account must be <u>debited</u> for the amount of the difference, while the inventory account will receive a <u>credit</u> for the same value.

7 0
3 years ago
S. S. Sarkar (S.S.S.), a real estate investment company, is considering investing in a shopping center. The sale price is $5,000
Alex777 [14]

Answer:

S.S.S. should not purchase the shopping center because its NPV is negative, i.e. -$1,952,890.30

Explanation:

Note: See the attached file to see how the net present value is calculated.

From the file, it can seen that the project will result in a negative NPV of $1,952,890.30. Therefore, S.S.S. should not purchase the Shopping center.

Download xlsx
7 0
3 years ago
If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money marke
kondaur [170]

Answer:

2. False

Explanation:

The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.

In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.

6 0
3 years ago
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