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Gennadij [26K]
2 years ago
10

The Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June

30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is ____________.
Business
2 answers:
denpristay [2]2 years ago
8 0

Answer:

Debit supplies expense $4,500

Credit supplies account $4,500

Explanation:

When the laundry supplies was purchased, the entries posted is debit to supplies account, credit to cash/accounts payable depending on whether cash was paid or the supplies were made on account.

As the supplies are used, the amount used is accounted for by debiting supplies expense and crediting supplies account.

As such, the balance in the supplies account is the net of the initial debit at purchase and the credit on use.

Hence adjusting amount

= $6,500 - $2,000

= $4,500

sertanlavr [38]2 years ago
6 0

Answer:

The adjusting entry that should be made by the company on June 30 is

Inventories $ 6,500 (debit)

PPE Asset $ 6,500 (credit)

Explanation:

Error Made on June 30 was as follows : Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset.

PPE Asset $6,500 (debit)

Cash $6,500 (credit)

On 30 June the amount of inventory reported is understated by $6500.While the amount of Assets recorded is overstated by $6500

Therefore the adjasting entry for this situation is as follows

Inventories $ 6,500 (debit)

PPE Asset $ 6,500 (credit)

Thus increasing the Inventory balance and decreasing the PPE Asset Balance.

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El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will recei
Natasha2012 [34]

Answer:

This distribution is not taxable since Raoul is not earning any money at all (dividend income = $0), but the tax basis on the stocks that he holds will vary.

Before the distribution, Raoul had 310 shares, each share with a $60 tax basis. After the distribution, Raoul will have 465 shares, each share with a $40 tax basis.

7 0
3 years ago
Public goods represent a market failure because
JulsSmile [24]
Public goods are available everywhere and are <span>both non-excludable and non-rivalrous</span>
They represent a market failure because <span>by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably. Answer: B
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7 0
3 years ago
Choose the method of pay that would result in the most earnings for one month on sales of $40,000. A. Straight commission of 7.
sleet_krkn [62]

The method of pay that would result in the most earnings is method 1.

<h3>What method of pay would result in the most earnings?</h3>

In order to determine which method of pay would yield the highest earnings, the total amount that would be earned using each method of pay has to be determined.

Method A = 7.5% x $40,000 = $3000

Method B = $1600 + (2.5% x $40,000) = $2,600

Method C = (5% x $30,000) + (6% x 10,000) = $2,100

Method D = (4% x $25,000) + (8% x $15,000) = $2,200

To learn more about pay, please check: brainly.com/question/11946555

8 0
2 years ago
:
Rasek [7]
Hi the correct answer would be C hope this helps you!
Good luck!
3 0
3 years ago
Read 2 more answers
You are evaluating shares in Honeywell International (HON). They currently pay an annual dividend of $4.00 per share this year a
xxTIMURxx [149]

Answer:

$84

Explanation:

Calculation for what is the value of HON shares

Using this formula

Value of HON shares=(Expected dividend next year)/(Discount rate -Growth rate of dividend)

Let plug in the formula

Value of HON shares= 4(1+.05)/(.10-.05)

Value of HON shares= (4.2/ .05)

Value of HON shares= $84

Therefore the Value of HON shares will be $84

7 0
3 years ago
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