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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.

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We see that for every 8 sandwiches that the customer needs, he will pay for 5. Lets see how many groups of 8 sandwiches the order of 675 sandwiches contains. If we do Euclidean Division we see that there are 84 groups of 8 and that three sandwiches are the remainder. 675/8=84.375; Hence we have 84 groups and 0.375*8=3 sandwiches that remain. Thus, the customer would play for 84*5= 420 sandwiches if he had ordered 84 groups of 8 (namely 672 sandwiches). Since he needs another 3 sandwiches and there is no promotional offer for those, he will have to pay in total for 423 sandwiches. It is important to not divide the total number by 8 and then multiply it by 5; the customer gets the free sandwiches only if he completes an offer of 5 sandwiches, thus we have to group the sandwiches in octads and deal with the remainder separately.
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2 years ago
In the figure below, ∆LMN is an equilateral triangle, side \overline {LM} LM is bisected by O, side \overline {LN} LM is bisecte
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Based on the calculations, the measure of angle PON (∠PON) in equilateral triangle LMN is equal to 30°.

<h3>What is an equilateral triangle?</h3>

An equilateral triangle can be defined as a special type of triangle that has equal side lengths and all of its three (3) interior angles are equal.

Since triangle LMN is an equilateral triangle, the following applies:

LN = LM = MN

∠LNM = ∠L = ∠LM = 60°

OP // MN (O and P are midpoint).

∠NPO = 90° + (90° - 60°) = 120°

∠PNO = ∠LNP/2 = 60/2 = 30°.

Therefore, ∠PON is given by:

∠PON = 180° - (∠PNO + ∠NPO)

∠PON = 180° - (30° + 120°)

∠PON = 180° - 150°

∠PON = 30°

Read more on equilateral triangle here: brainly.com/question/14709905

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1 year ago
The great disparity in economic prosperity between north and south korea can best be explained by the​ _____________.
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Political and economic system differences
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3 years ago
Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The numbe
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It can be deduced that the number of blankets that must be sold in order for the company to achieve the target profit is 40000.

<h3>How to calculate the target profit</h3>

From the information, Blissful Blankets' target profit is $520,000 and each blanket has a contribution margin of $21. Fixed costs are $320,000.

Therefore, the number of blankets that must be sold to achieve the target profit will be:

= (520000+320000)/21

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2 years ago
RAK Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.7 percent coupon b
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Answer:

5.31%

Explanation:

FV = 1000

Coupon rate = 5.7%

No of compound = 2

Interest per period = $28.5

Bond price = $1048

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Coupon rate set on new bonds = Rate(Nper, PMT, -PV, FV) * 2

Coupon rate set on new bonds = Rate(40, 28.5, -1048, 1000) * 2

Coupon rate set on new bonds = 0.02655 * 2

Coupon rate set on new bonds = 0.0531

Coupon rate set on new bonds = 5.31%

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2 years ago
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