Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income <u>$46,200</u>
Beginning adjusted retained earnings for year 2017 <u>$926,200</u>
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
Answer:
Standard rate per direct labor hour is $27.1
Explanation:
Standard rate per direct labor hour includes the hourly pay rate, Payroll taxes and fringe benefits. For Theresa Corporation,
We have given that
Basic direct labor rate is $21.00 per hour
Payroll Taxes is 10% of basic direct labor rate i.e. 10% of $21.00 = $2.10 per hour
Fringe Benefits is $4.00 per hour.
So Standard rate per direct labor hour = $21.00 + $2.10 + $4.00 = $27.1
Answer:
Explanation:
The adjusted journal entry is shown below:
Unearned rent revenue A/c Dr
To Rent revenue A/c
(Being the adjusted entry of rent is recorded)
The computation of the rent revenue is shown below:
= Received amount × number of months ÷ (total number of months in a year)
= $32,400 × (5 months ÷ 12 months)
= $13,500
The 5 months is calculated from August 1 to December 31
Answer:
A
Explanation:
Seasons cycle, and therefore the menu with it
