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tia_tia [17]
2 years ago
10

You have been engaged to review the financial statements of Sage Corporation. In the course of your examination, you conclude th

at the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows. 1. Year-end wages payable of $3,540 were not recorded because the bookkeeper thought that "they were immaterial." 2. Accrued vacation pay for the year of $28,800 was not recorded because the bookkeeper "never heard that you had to do it." 3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,700 because "the amount of the check is about the same every year." 4. Reported sales revenue for the year is $1,927,080. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state’s Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $93,780. Prepare the necessary correcting entries, assuming that Headland uses a calendar-year basis.
Business
1 answer:
Triss [41]2 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

1. Salaries & Wages Expenses Dr, $3,540

         To Salaries & Wages Payable $3,540

(Being salaries and expenses is recorded)

2. Salaries & Wages Expenses Dr, $28,800

         To Salaries & Wages Payable $28,800

(Being salaries and expenses is recorded)

3. Prepaid Insurance Dr, $2,250

        To Insurance Expense $2,250

($2,700 × 10 months ÷ 12)

(Being prepaid insurance is recorded)

4. Sales Revenue Dr, $109,080

($1,927,080 × 6 ÷ (100 + 6))

         To Sales Tax Payable $109,080

(Being Sales revenue is recorded)

5. Sales Tax Payable Dr, $93,780

          To Sales Tax Expense $93,780

(Being sales tax expenses is recorded)

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arsen [322]

Answer:

A. Movement on the PPC

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C. Less Concavity of PPC

Explanation:

Production Possibility Curve is combination of two goods that an economy can produce, given resources & technology (efficient utilisation).

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a) A disagreement between persons favouring more domestic welfare spending or national welfare spending : Is just an issue of reallocation of same resources, technology. So, PPC doesn't change & there can only be movement on the PPC (more of one good, less of other good)

b) An increase in population : leads to increase in human resource & hence the PPC shifts outwards / rightwards as the production potential of economy rise with more human resource.

c) Technological change that make resources less specialised : would reduce resources' efficiency gap in production of two goods. So, Marginal Opportunity cost reduces & hence the PPC becomes less concave.

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3 years ago
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Business communication should promote integration and relationship with the company's stakeholders, so it is necessary that the communication process is based on ethics and legal conduct, so that there is no type of communication noise and information is passed on in a timely manner. contrary to what was proposed.

It is necessary for managers to adopt a posture consistent with the organizational culture, in the case exemplified above there is an abusive language, as there is the use of offensive words to refer to employees and customers, therefore this conduct must be promptly reviewed, as an effective manager is one that ensures that its public is respected and protected from harm, so that the organizational climate is as positive as possible, which ensures greater productivity and motivation of employees to make the organization more profitable.

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