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
vekshin1
3 years ago
11

During the adjusting process two transactions were missed. The first is for unearned rent revenue of which $450 was earned durin

g the period, the second was for accrued interest payable of which $275 is owed for the period. As a result of these omissions
1. liabilities are overstated by $725.
2. assets are overstated by $725.
3. net income is understated by $175.
4. revenue is overstated by $725.
Business
1 answer:
masya89 [10]3 years ago
4 0

Answer:

3. net income is understated by $175

Explanation:

There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.

Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.

Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.

You might be interested in
Yurman Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or th
vekshin1

Answer:

b. $660,000.

Explanation:

Deferred revenues or unearned revenues refer to money that a company received in advance for goods or services that it still has delivered or provided. In this case, the company hasn't provided services for years 2017, 2018 and 2019 = $200,000 + $320,000 + $140,000 = $660,000

6 0
3 years ago
If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/
Alexus [3.1K]

Answer:

The the largest loan this buyer can afford is 14,533.75.

Explanation:

This can be determined using the formula for calculating the present value of an ordinary annuity as follows:

Step 1: Calculations of the present value or the loan the buyer can afford for a 30 year loan at 5 1/2%

PV30 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV30 = Present value or the loan the buyer can afford for a 30 year loan at 5 1/2% =?

P = monthly payment = 1000

r = interest rate = 5 1/2% = 5.50% = 0.055

n = number of years = 30

Substitute the values into equation (1) to have:

PV30 = 1000 * ((1 - (1 / (1 + 0.055))^30) / 0.055)

PV30 = 1000 * 14.5337451711221

PV30 = 14,533.75

Step 2: Calculation of the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%

PV20 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV30 = Present value or the loan the buyer can afford for a 20 year loan at 4 1/2% =?

P = monthly payment = 1000

r = interest rate = 4 1/2% = 4.50% = 0.045

n = number of years = 20

Substitute the values into equation (1) to have:

PV20 = 1000 * ((1 - (1 / (1 + 0.045))^20) / 0.045)

PV20 = 1000 * 13.0079364514537

PV20 = 13,007.94

Conclusion

Since 14,533.75 which is the present value or the loan the buyer can afford for a 30 year loan at 5 1/2% is greater than the 13,007.94 which is the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%, it therefore implies that the the largest loan this buyer can afford is 14,533.75.

5 0
2 years ago
Two best friends, Thelma and Louise, are making long-range plans for a road trip vacation to Mexico. They will embark on this ad
chubhunter [2.5K]

Answer:

Bond Price​= $1,081.1

Explanation:

Giving the following formula:

Face value= $1,000

Number of periods= 5*2= 10 semesters

Coupon= (0.1/2)*1,000= $50

YTM= 0.08/2= 0.04

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 50*{[1 - (1.04^-10)] / 0.04} + [1,000 / (1.04^10)]

Bond Price​= 405.54 + 675.56

Bond Price​= $1,081.1

5 0
2 years ago
Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. when he arrived he disco
inysia [295]
The answer is The income effect. 
Income effect is described as the change in demand of a service or good brought on by change in the income of a consumer.It is observed in two cases first is when income of person increases and second is when price of goods or service decreases. 
The scenario given in the question is an example of second case as the price of burger was less than normal Steve perceived his income to be able to buy more product in same price
8 0
3 years ago
The relationship between increasing prices and decreasing money value is called
Lana71 [14]

Answer:

Inflation occurs when prices rise across the economy, decreasing the purchasing power of your money.

Explanation:

Can I please get on the brainlist

6 0
1 year ago
Read 2 more answers
Other questions:
  • Creative task performance involves employee responses to task demands that are novel, unusual, or, at the very least, unpredicta
    7·1 answer
  • Select the examples that best demonstrate likely tasks for Engineering and Technology workers. Check all that apply.
    12·2 answers
  • In order for the hitch ball to be secured properly, what should be the last part assembled?
    6·1 answer
  • If the Ford Focus is the cost​ object, classify each of the following costs as indirect or​ direct, respectively: property taxes
    15·1 answer
  • Which of the following would be an advantage of leasing a vehicle?
    14·1 answer
  • Equilibrium occurs when supply and demand coordinate to
    15·2 answers
  • Which of the following statements is true about profits in a monopolistically competitive market? A. Most firms will earn substa
    13·1 answer
  • Mongar Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhe
    7·1 answer
  • Ziva is an organic brocolli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant
    11·1 answer
  • If the japanese yen appreciates against the u.s. dollar,
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!