Answer:
b. Total debits and total credits on the trial balance will still be equal.
d. The balance sheet equation will be in balance.
f. The account balances for cash and service revenue will be incorrect.
Explanation:
In accounting, this kind of mistake is called subsidiary entries under Types of Errors in Accounting. Therefore, all the transactions that recorded incorrectly are regarded as subsidiary entry.
Although, as regards this particular question, the account balances for cash and service revenue will not be correct, but this does not prevent the total debits and total credits on the trial balance from being equal nor prevent the balance sheet equation to balance.
The implication is that this error will not show in the trial balance. The solution to this error in order to detect this kind of error is to carry out a bank reconciliation frequently by comparing figures on the bank statement to the figures in the company's books.
Answer:
Option "2" is the correct answer to the following statement.
Explanation:
A short-term loan is a form of loan received to endorse short term business and personal wealth for a very short period. It is a tempting and temporary option, for most of the short term businesses which are not easily eligible for a loan from a financial institution.
This type of loan mostly paid back in a very short period usually in 12 months.
In this case, MVJ gets a loan for 90 days or 3 months so it is considered a short term loan.
Answer:
The goodwill that resulted from the transaction is $1.3 million, the excess paid by Backstreets Co. over the net assets of Jungleland Inc. acquired
Explanation:
Goodwill is the excess of purchase consideration over net assets acquired in a business combination.
The total net assets acquired can be deduced as total assets less total liabilities:
Land $2m
Buildings $3.7m
Inventory <u>$2.5m</u>
total assets 8.2m
Liabilities ($1.8m)
Net Assets $6.4 m
Purchase price $7.7 m
Goodwill is $1.3m ($7.7m -$6.4m)
The goodwill is the advantage that the owners business have over the new owners being the pioneers that set the business on the right path
Answer: $1.90
Explanation:
The dividend payment that has to be made needs to be less than the Earnings per share in order for the REIT to maintain its tax exempt status.
EPS = (Net income - Expenses) / Number of shares
Expenses = Operating expenses + Depreciation
= 400 + (6,000 / 15 years)
= $800
EPS = (1,000 - 800) / 100
= $2.00
<em>The only option less than $2.00 is the first option of $1.90 so this is correct. </em>
Answer:
C. 91,000 74,000
Explanation:
Calculation to determine the choices that correctly expresses the total equivalent units of production for Material X and Material Y
Calculation for Material X using this formula
Material X = Started and completed + Ending Work-in-process inventory
Let plug in the formula
Material X = 74,000 units + 17,000 units
Material X = 91,000 units
Therefore Material X will be 91,000 units
Calculation for Material Y
Based on the information given Material Y will be 74,000 units reason been that Y is added at the 80% point while the current point on the other hand is 30%.
Therefore Material Y will be 74,000 units.
