Answer:
Explanation:
Cost of machine - $80000
Useful life - 5 years
Salvage value -$5000
Depreciable amount = 80000-5000= 75000
Annual depreciation = 75000/5 = 15000
Year DR Accum Dep
Cost 8000
1 Depreciation 15000 15000
2 Depreciation 15000 30000
Year 3 Depreciation 15000 45000
Year 4 Depreciation 15000 60000
Year 5 Depreciation 15000 75000
Financial statement template
Balanced sheet
Cash asset + Non cash asset = liabilities + Equity
Cash asset + 65000 = liabilities + equity
Income statement
Revenue - expenses = Net income
Revenue - 15000 - Net Income
Answer:
C, D , E , F.
Explanation:
These all are connected with money.
Sorry if I don't get this right I never had this question before.
Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
Answer:
$25,000
Explanation:
The computation of the adjusted balance of retained earning is shown below:
Since the depreciation expense is overstated on 2019 which decreased the earnings so it would be added
Since the depreciation expense is understated on 2020 which increased the earnings so it would be deducted
And, the ending inventory for 2020 is understated which decreased the earning so it would be added
Therefore, the adjusted balance is
= $24,000 - $4,000 + $5,000
= $25,000
