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BaLLatris [955]
3 years ago
11

Texan Inc. had the following errors over the last two years: 2020: Ending inventory was overstated by $60,000 while depreciation

expense was overstated by $25,700. 2021: Ending inventory was understated by $12,500 while depreciation expense was understated by $6,400. By how much should retained earnings be adjusted on January 1, 2022
Business
1 answer:
faltersainse [42]3 years ago
7 0

Answer:

-$28,200

Explanation:

when the inventory closing balance is overstated, the cost of goods sold is understated and as such the net income which is posted to the retained earnings will be overstated.

For the overstatement of depreciation, the net income will be understated by the same amount.

The reverse is the effect on net income for these items where the misstatement is otherwise.

Retained earnings adjustments required on January 1, 2022

= -$60,000 + $25,700 + $12,500 - $6,400

= -$28,200

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Orange County Shop follows the revenue recognition principle. Orange County services a bicycle on July 31. The customer picks up
mel-nik [20]

Answer:

a. July 31

Explanation:

According to the revenue recognition principle, the revenue is recorded when the revenue is realized or earned not when the cash is received. There is no effect on cash receipt in this principle

Whether cash is received or not, the revenue is recognized when the service is provided to a customer

According to the given scenario, the service is performed so it is on July 31

8 0
3 years ago
What is the difference between general and applied ethics​
Snezhnost [94]

Answer:

The answer is below

Explanation:

Both General ethics and Applied Ethics are part of philosophical knowledge in understanding humans and their society.

Hence, the difference between general and applied ethics​ is:

General ethics is a philosophical term that is used to describe the theory of values in human activities. It deals with answering the controversial questions of human morality by establishing the idea of good and evil, right and wrong.

On the other hand, Applied Ethics is a term used in philosophy to describe a branch of ethics that is established to answer the issue of moral dilemmas, strategies, and operations in individuals' life, organizations, technology, and state.

5 0
3 years ago
On january 1, year 1, canseco plumbing fixtures purchased equipment for $52,000. residual value at the end of an estimated four-
olganol [36]
Am not sure but here is what I think (56)
3 0
3 years ago
ASAP!!!!!!!!!!1
barxatty [35]

<u>Answer:</u>

<em>Elastic</em>

<u>Explanation:</u>

Price Elasticity of Demand (PED) is a method in economics which shows the demand quantity of a good or service, in response to a change in its price. PED is a percentage change in quantity demanded, when the price changes by one percent.

The demand is said to be inelastic for a good or service when the PED is less than 1. When it is greater than 1, then the demand is said to be elastic.

4 0
3 years ago
As part of her retirement planning, Mrs. Campbell purchases an annuity that pays compounded quarterly. If the quarterly payment
melisa1 [442]

Answer: $88289.8

Explanation:

Here's the complete question:

As part of her retirement planning, Mrs. Campbell purchases an annuity that pays 9.5% compounded quarterly. If the quarterly payment is $3,500, how much will Mrs. Campbell have saved in 5 years?

The future value of an annuity will be calculated using the formula:

= A((1+r)^n)-1)/r

Where,

A = the annuity payment = 3500

r = the interest rate = 9.5% compounded quarterly = 9.5% / 4 = 0.095 / 4 = 0.2375

n = the number of time periods = 4 × 5 = 20

We then substitute the values and we will get:

= A((1+r)^n)-1)/r

= 3000 × (1.02375^20-1) / 0.02375

= $88289.8

7 0
3 years ago
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