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stich3 [128]
2 years ago
9

A company switched from the cash basis to the accrual basis for recognizing warranty expense. The unrecorded liability for warra

nties was $1.6 million at the beginning of the year. Its tax rate is 35%. The company booked a year-end warranty liability of $3 million. As a result of this change, the firm would:
Business
1 answer:
Ostrovityanka [42]2 years ago
6 0

Answer:

Report a prior period adjustment decreasing retained earnings by $1,040,000

Explanation:

Report a prior period adjustment decreasing retained earnings by $1,040,000

Dr Retained earnings $1,040,000

Dr Deferred tax liability $560,000

(35%×$1,600,000)

Cr Estimated warranty liability $1,600,000

Therefore As a result of this change, the firm would Report a prior period adjustment decreasing retained earnings by $1,040,000

You might be interested in
What is a BFOQ? Should BFOQs be allowed?
Ulleksa [173]

Answer:

In employment law, a bona fide occupational qualification (BFOQ) (US) or bona fide occupational requirement (BFOR) (Canada) or genuine occupational qualification (GOQ) (UK) is a quality or an attribute that employers are allowed to consider when making decisions on the hiring and retention of employees—a quality that when considered in other contexts would constitute discrimination and thus be in violation of civil rights employment law. Such qualifications must be listed in the employment offering.[citation needed]

Explanation:

Canada

The law of Canada regarding bona fide occupational requirements was considered in a 1985 Canadian court case involving an employee of the Canadian National Railway, K. S. Bhinder, a Sikh whose religion required that he wear a turban, lost his challenge of the CNR policy that required him to wear a hard hat.[1] In 1990, in deciding another case, the Supreme Court of Canada amended the Bhinder decision: "An employer that has not adopted a policy with respect to accommodation and cannot otherwise satisfy the trier of fact that individual accommodation would result in undue hardship will be required to justify his conduct with respect to the individual complainant. Even then the employer can invoke the BFOQ defence."[2]

United States

In employment discrimination law in the United States, both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act contain a BFOQ defense. The BFOQ provision of Title VII provides that:

[I]t shall not be an unlawful employment practice for an employer to hire and employ employees, for an employment agency to classify, or refer for employment any individual, for a labor organization to classify its membership or to classify or refer for employment any individual, or for an employer, labor organization, or joint labor-management committee controlling apprenticeship or other training or retraining programs to admit or employ any individual in any such program, on the basis of his religion, sex, or national origin in those certain instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise ...[3]

i'm not able to add the balance of the answer so pls go to https://en.wikipedia.org/wiki/Bona_fide_occupational_qualification

5 0
3 years ago
Steeler Manufacturing uses an unrelated diversification strategy throughout its operations. For instance, Steeler has five core
galina1969 [7]

Answer:

highly-diversified

Explanation:

Based on the scenario being described within the question it can be said that Steeler Manufacturing would be considered a highly-diversified firm. This term refers to a business/organization that has a wide varied array of operations, all of which are completely unrelated to one another. Which is exactly what Steeler Manufacturing has with it's five subsidiaries. All of which are successful.

5 0
3 years ago
A company purchased $2,600 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $600 worth of merchandise. On
mamaluj [8]

Answer:

No options presented but the entry below should be right.

$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:

= 2,600 - 600

= $2,000

Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:

= 2,000 * ( 1 - 3%)

= $‭1,940‬

Date               Account details                                     Debit               Credit

July 12           Accounts Payable                               $2,000

                      Cash                                                                               $1,940

                      Merchandise inventory                                                    $60

4 0
2 years ago
XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nom
djverab [1.8K]

Answer:

Dr Rent revenue

Cr Unearned rent revenue, $4,500

Explanation:

Preparation of XYZ Company Journal entry

Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

(3/12 x $18,000 ).

Dr Rent revenue

Cr Unearned rent revenue, $4,500

(3/12 x $18,000 )

7 0
3 years ago
Suzy’s Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behav
prisoha [69]

Answer:

Cost= $6,242.18

Explanation:

Giving the following information:

Month Number of snow cones Total operating costs

January 3,500 cones  $5,000

February 3,800 cones $4,800

March 5,000 cones $6,800

April 3,600 cones $5,450

May 4,700 cones $6,200

June 4,250 cones $5,950

Suzy uses the high-low method to determine her operating cost equation.

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)

Variable cost per unit= (6,800 - 4,800) / (5000 - 3,500)= 1.3333

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 6,800 - (1.3333*5000)= 133

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 4800 - (1.3333*3,500)= 133

Q= 4,582

Cost= 133 + 4582*1.3333= $6,242.18

6 0
3 years ago
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