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77julia77 [94]
3 years ago
14

On March 1, it was discovered that the following errors took place in journalizing and posting transactions:

Business
1 answer:
kaheart [24]3 years ago
5 0

Answer:

a. Reversal entry:

Debit Rent expense $4,650

Credit Miscellaneous Expense $4,650

Correct Entry:

Debit Rent expense $4,650

Credit Cash $4,650

b. Reversal entry:

Debit Accounts payable $3,700

Credit Cash $3,700

Correct Entry

Debit Cash $3,700

Credit Accounts Receivable $3,700

Explanation:

Reverse entry is to simply close to zero the original entry that has been made in mistake. Afterwards, record the correct entry to properly account the transaction.

To reverse the previously made entry, we simply debit what is credited and debit what is credited.

a. We need to close the rent expense credited by debiting it and credit the miscellaneous expense that is previously debited to zereod out the mistake recording. Then to record the correct entry, Debit Rent expense and Credit Cash at the amount $4,650

b. Just ike what we did on the previous transaction, we will debit the Accounts payable and credit the cash that has been recorded by mistake to zereod out the balance and then make the correct entry. Debit Cash $3,700 and credit Accounts receivable $3,700.

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During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the
mixas84 [53]

Answer:

A) Shering's operating activities reported a $490,000 pretax profit, and since their tax rate is 40%, their taxes = $490,000 x 40% = $196,000

B) Shering only has to include 30% of the dividends received from Tank as taxable income = $20,000 x 30% = $6,000, plus the $20,000 from bonds form Zig = $26,000

Shering will owe $26,000 x 40% = $10,400 in taxes, and its after tax income = $40,000 - $10,400 = $29,600

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3 years ago
Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $
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Answer:

C. $125,550

Explanation:

Given that

At beginning = 7200unit at $12 each

During = 3000unit at $13

= 12000 unit at $13.50

Sold = 12900 unit.

Therefore, USING FIFO

Unit sold

= (7200 × 12) + (3000 × 13) + (2700 × 13.50)

= 86400 + 39000 + 36450

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7 0
3 years ago
For each of the following transactions, determine if Raymond Corporation has earned revenue during the month of May and, if so,
kompoz [17]

Answer:In the month of May, Revenue was only earned from Customer C $3,400 and customer D, $2,300. Revenue was not earned from Customers A and B in the month of May. Therefore, total revenue is $5,700.

Explanation:In accordance with the principle of revenue recognition,Revenue will only be recognised when it is earned and services when they are fully rendered. For Customer A, the service has not been rendered, Therefore, the revenue is not yet earned.

For customer B, Although agreement has been reached and goods delivered, since payment hasn't been received, revenue is not recognised.

6 0
3 years ago
In 2019, Dan transferred 5-year property to Fleck Corp. in a tax-deferred Section 351 transaction. Fleck took Dan's adjusted bas
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Answer:

The property will be depreciated using the remaining 3 years of its life after the tax-free incorporation transfer year.  This is because Dan had already depreciated the property for 2 years before the transfer.

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7 0
3 years ago
Your friend says to you, "America is one of the fairest countries in the world because we have a democracy, and we are able to v
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Answer and explanation:

Democracy is the state in which individuals of a community make decisions collectively being the interest of most people prioritized. A pure form of democracy is difficult to find even in countries that highly promote equal rights such as the United States.

The Democracy Index is a composite that measures democracies in 167 countries scoring them from 1 to 10 (10 is the highest grade). In 2019, The U.S. was positioned in the 25th place in the list of most democratic countries. <em>Norway </em>is placed in the first place followed by <em>Iceland</em>.

In such a case, <em>we should recommend our friend to take a look at the Democracy Index where he or she will find out that the U.S. is not one of the fairest nations in the world. Its government functioning and political participation are aspects where the U.S. needs improvement.</em>

6 0
3 years ago
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