1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miv72 [106K]
2 years ago
9

On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consum

ed supplies of $800. If no adjusting entry is made for supplies
a. stockholer's equity will be overstated by $800.
b. assets will be understated by $350.
Why the answer is (a)? and why (b) is wrong answer?
Business
1 answer:
-BARSIC- [3]2 years ago
4 0

Answer:

stockholer's equity will be overstated by $800.

Explanation:

The adjustment required is to record $800 of supplies used as an expense, hence, by carrying out the adjustment, net income is overstated by $800 so also retained earnings and shareholders' equity.

In other words,the balance that would be left in supplies is opening balance of $200 plus purchase of supplies which is $950 minus the supplies used.

balance of supplies=$200+$950-$800=$350

Option B is wrong the balance expected is $350 and the balance without adjustment is $200,that is $150 understatement not $350

You might be interested in
Should protesting be allowed at Biden’s inauguration?
Fudgin [204]

Answer:

Explanation:

No, He deserves a peaceful inauguration.

3 0
3 years ago
When you're planning a convention, which of the following steps would you complete first? A. Select the site. B. Write the invit
blagie [28]
Hello,

Here is your answer:

I think the proper answer to this question will be option A "select a site". That's just because when planing a convention you have to find a place to hold it, form the committee, write the program, and then you have to write invites.

Your answer is A!

If you need anymore help just ask me!
7 0
2 years ago
Larry's parents divorced when he was 5. His father moved out of the area, and his mother is kept busy with trying to keep a roof
Aleks [24]

Answer:

The correct word for the blank space is:  Permissive.

Explanation:

Permissive parenting is the style by which parents allow their children to do what the children consider best for them, even if it is not necessarily correct. Under this approach, parents are seen more like friends since they do not provide the children with a well-established set of rules.

3 0
3 years ago
State farm Commercial "she shed" Who burned down the she-shed
Anika [276]

Explanation:

The ad features a character named Cheryl who calls State Farm to check whether she's insured for the outdoor "she shed" burning down in front of her and her husband, Victor. The prevailing fan theory is that Victor burned down the she shed

5 0
3 years ago
Read 2 more answers
On April 12, Hong Company agrees to accept a 60-day, 10%, $9,000 note from Indigo Company to extend the due date on an overdue a
emmainna [20.7K]

Answer:

The journal entry to be recorded for the payment of the note on date of maturity is shown below:

Explanation:

The journal entry to be recorded for the payment of the note on date of maturity is as follows:

Notes Payable A/c..........................Dr  $9,000

Interest expense A/c......................Dr  $148

            Cash A/c..........................................Cr  $9,148

Being payment of the note payable is reported on the maturity date

As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.

Working Note:

Interest expense = $9,000 × 10%  × 60/ 365

Interest expense = $148

3 0
3 years ago
Other questions:
  • Which of the following is considered a need
    14·2 answers
  • Over 900,000 Americans in 2014 filed for this financial status
    15·1 answer
  • A large manufacturing business has hired you as a fraud detection specialist. The first day on the job your boss tells you she h
    11·1 answer
  • Presented below is information related to equipment owned by Porto Company on December 31, 2017. Cost $5,600,000 Accumulated dep
    6·1 answer
  • Please give examples of circumstances in which a project would employ lag relationships between activities using: a. finish to s
    9·1 answer
  • Gloria, the controller of luna pizza, is purchasing several new delivery vehicles. gloria has numerous work responsibilities, so
    6·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    6·1 answer
  • Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $14,835.00 million this year ( FCF1 = $14,835.00 milli
    5·1 answer
  • An asset is acquired using a noninterest-bearing note payable for $100,000 due in two years. Management records the purchase wit
    6·1 answer
  • A) What do you understand by the term qualitative research?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!