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DIA [1.3K]
3 years ago
7

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: An insurance policy covering three years was purchased on January 1, 2021, for $4,200. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item. During 2021, the company received a $675 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $675 was credited to sales revenue. No entry was recorded for the cost of merchandise. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $645 were on hand at December 31. Hales borrowed $17,000 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. Net income reported in the 2021 income statement is $33,000 before reflecting any of the above items.
Required:
Determine the proper amount of net income for 2021. (Amounts to be deducted should be indicated by a minus sign.)
Unadjusted Net income:
Adjustments:
a.
b
c.
d.
Adjusted net income:
Business
1 answer:
Nana76 [90]3 years ago
3 0

Answer:

$35,260

Explanation:

Calculation to Determine the proper amount of net income for 2021

Unadjusted net income $33,000

Adjustments:

a. Insurance expense overstated $2,800

[4,200-(4,200/3)]

b. Sales revenue overstated $(675)

c. Supplies expense overstated $645

d. Interest expense understated $(510)

(12%*17,000*3/12)

Adjusted net income $35,260

Therefore the proper amount of net income for 2021 will be $35,260

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Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the st
stealth61 [152]

Answer:

hello  your question is incomplete below is the complete question and the missing table

Your investment bank has an investment of $100 million in the stock of the Swiss Roll Corporation and a short position in the stock of the Frankfurter Sausage Company. Here is the recent price history of the two stocks: on the evidence of these six months how large would your short position in Frankfurter sausage needed to be to hedge you as far as possible against movements in the price of swiss Roll

answer : $42003667

Explanation:

$100 million in stocks

According to the data provided in the table attached below, to short the Frankfurt in order to hedge investment in Rolls is calculated below

we have to calculate the total return on both Roll corporation and Frankfurter sausage

for f-sausage

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.1 .... + 1 + 0.1 ) = -0.0297 =  -2.97%

for Roll corporation

∑ (1 + monthly returns ) / 100

= ( 1 - 0.1 + 1 - 0.05 .... + 1 + 0.1 ) = -0.012475 =  - 1.24%

next we will calculate the total loss inquired when investing in Roll corporation

Total loss = percentage loss * total investment

                 = 0.012475 * $100 million  =  - $ 1247500

we will have to offset the loss by shorting investments in F sausage

hence : $1247500 = investment in sausage * total return

             1247500 = investment in sausage * 0.0297 ( The total return of F sausage is positive because it was a short position )

hence short investment in F sausage to offset loss incurred in ROLLS INVESTMENT

= 1247500 / 0.0297 = $42003667

8 0
3 years ago
Mathis Co. at the end of 2017, its first year Of operations, prepared a reconciliation between pretax financial income and taxab
hram777 [196]

Answer:

$360,000, $ 900,000, $360,000

Explanation:

Particulars Amount

Income tax payable($1, 800,000 * 30%) $ 540,000

Less: Change in deferred tax asset ($3,000,000 *30%) $ 9,000,000

Add: Change in deferred tax liability ($ 2,400,000 * 30%) $ 720, 000

Income tax expense $ 360,000

Deferred tax asset ($ 3,000,000 *30%) = $ 900,000

Deferred tax asset = $ 900,000 non current

Deferred Tax liability to be recognized($ 1, 200,000 * 30%)  $360,000

check the attached file for well formatted solution

4 0
3 years ago
Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and se
Rufina [12.5K]

Answer:

diminishing ; assumed

Explanation:

Given:

total utils from doing so after

the fourth, fifth, sixth, and seventh wings are 30, 50, 65, 72

Now,

marginal utility from fifth = total utility from fifth - total utility from fourth

= 50 - 30

= 20 utils.

marginal utility from sixth = total utility from sixth - total utility from fifth

= 65 - 50

= 15 utils.

marginal utility from seventh = total utility from  - total utility from sixth

= 72 - 65

= 7 utils.

Here,

the marginal utility is diminishing i.e from 20 to 15 and from 15 to 7 utils

also,

it is assumed that the marginal utility will decrease when we analyse the consumer utility because the consumers gets satisfied and thus, the increase in satisfaction leads to the decrease in utility

hence, the answer is diminishing ; assumed

4 0
3 years ago
How can a digital pen make a task easier
dezoksy [38]
More exact than normal pen
7 0
3 years ago
Suppose you are travelling in Japan and you want to purchase an electronic device that costs 6774.35 yen. The exchange rate is 1
emmasim [6.3K]

In U.S. dollars this device would cost $55.

Exchange rate is the value of a currency in terms of another currency. It is the rate at which a currency would be exchanged for another currency. Based on the information provided in the question, $1 exchanges for 123.17 yen.

Price of the device in US dollars = cost of the device in yen / exchange rate

6774.35 yen /  123.17 yen = $55

To learn more, please check: brainly.com/question/14705259

8 0
2 years ago
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