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3 years ago

Adjusting entries are made after the preparation of financial statements t/f

Business

1 answer:

Natalka [10]3 years ago

8 0

Hi there,

Glad to be helpful.

Adjusting entries are actually what go into the books. They are similar to journal entries, but are plugged into the general ledger. Therefore, it is impossible that they go before the financial statements which are the balance sheet, income statement, etc - those are entirely dependent on the general ledgers and adjusting entries.

Therefore,

<u>FALSE! </u>

Read more on income elasticity here

brainly.com/question/14620012?referrer=searchResults

#SPJ1

6 0

2 years ago

Robert sold his Lebec Corporation stock to his sister Karen for $8,000. Robert's cost basis in the stock was $15,000. Karen late

lara [203]

Answer:

$7,500

Explanation:

A few points must be considered in order to calculate ther realized gain.

1. Although Robert's stock in Lebec Corporation was $15,000 at cost, it was sold to Karen (his sister and related party) for $8000. Since it is related party transaction, the loss of $7000 ($15,000-$8,000) cannot be reported as a loss.

2. Karen's basis for the stock is $8000 (the amount she bought it from her brother).

3. Karen sold the stock to Dana for $15,500. The realized gain since Dana is not related is $15,500-$8,000= $7,500. This becomes the realized gain since it is an unrelated party transaction.

7 0

3 years ago

During its calendar year 2019, a city issued $800,000 of bonds to acquire various items of capital equipment. By the end of 2020

padilas [110]

Answer:

The city's net investment in capital assets is $30,000

Explanation:

To calculate the city's net investment in capital assets we start with the total amount of capital assets:

Capital assets $800,000

minus accumulated depreciation ($120,000)

<u>minus outstanding bonds ($650,000) </u>

net capital assets $30,000

3 0

4 years ago

CM Company manufactures a component used in the production of one of its main products. The following cost information is availa

denpristay [2]

Answer:

NPV = 661468 – 728000 = -66532

Explanation:

Direct Material 410

Direct Labour 100

Variable manufacturing O/H 90

Variable cost to manufacture 1 unit 600

Loss on purchase component from outside supplier

(630 – 600) * 3000 units 90000

(-) Contribution from released facility 10000

Operating Income would Decrease by 80000

Present Value of Future cash flow from Proposal X :-

PVAF for 5 years at 10% = 3.791

PVIF for 5th year at 10% = 0.621

PV of annual cash inflow (164000 * 3.791) 621724

PV of Residual value (64000 * 0.621) 39744

Present Value of Future cash flow 661468

NPV = 661468 – 728000 = -66532

8 0

4 years ago

An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 1

seropon [69]

Answer: it would be 100 business travlers who will pay 600$ for a ticket

Explanation: well if you do the math 600×100=60,00 and that would pay for the airline expenses and extra the other option wouldnt be enough because it would only add up to 15,000 300×50=15,00 so it would be enough

7 0

3 years ago

Adjusting entries are made after the preparation of financial statements ​t/f

Adjusting entries are made after the preparation of financial statements t/f