1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Orlov [11]
3 years ago
6

On December 31, 2022, Monty Company prepared an income statement and balance sheet and failed to take into account three adjusti

ng entries. The incorrect income statement showed net income of $44,000. The balance sheet showed total assets, $166,400; total liabilities, $66,000; and stockholders’ equity, $100,400. The data for the three adjusting entries were: (1) Depreciation of $9,720 was not recorded on equipment. (2) Salaries and wages amounting to $10,720 for the last two days in December were not paid and not recorded. The next payroll will be in January. (3) Rent of $7,520 was paid for two months in advance on December 1. The entire amount was debited to Prepaid Rent when paid.

Business
1 answer:
irga5000 [103]3 years ago
5 0

Answer:

Salaries and Wages are owed so they are now liabilities. They are also expenses and will reduce the Net Income.

Rent Revenue was in advance for 2 months meaning one of those months will be December which is in the current period so;

= 7,520/2

= $3,760 will be added to net income for the year

The same amount will be removed from Liabilities as the revenue has now been recognized.

Depreciation reduces the value of Fixed assets so will be deducted from Assets.

It is also an expense so it will reduce Net Income.

Whatever happens to Net Income will happen to Stockholders' equity as well because Net Income is an Equity account.

You might be interested in
For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price
zzz [600]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $109,000

Unit variable cost= $21

Selling price= $85.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 109,000/ (85 - 21)

Break-even point in units= 1,703 units

Now, we need to include the desired profit:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (109,000 + 150,000) / 64

Break-even point in units= 4047 units

Sales= 500,000

Variable cost= 5,882*21= (123,522)

Contribution margin= 376,478

Fixed costs= (109,000)

Net operating income= $267,478

8 0
3 years ago
How do your financial choices impact the economy?
Slav-nsk [51]
You become broke cause you don't pay your bills on time or car notes that's why the economy is failing
<span />
5 0
3 years ago
Read 2 more answers
What is network architecture?
Varvara68 [4.7K]

Answer:

 Network architecture refers to the layout of the network, consisting of the hardware, software, connectivity, communication protocols, and mode of transmission (i,e. wired or wireless). This FAQ will introduce you to the concept.

  I hope this answer helps you>>>>

4 0
3 years ago
Ellie has been working for an engineering firm and earning an annual salary of $80,000. she decides to open her own engineering
goldenfox [79]
Ellie would have annual expenses of $15000+$3000+$1000+$1200+$35000=$55,200. If she cashed in her $20.000 deposit then her balance owing would be $35,200 so she would have to make at least this much or preferably the $55,200 to break even., 
7 0
3 years ago
Moody Farms just paid a dividend of $3.95 on its stock. The growth rate in dividends is expected to be a constant 5 percent per
Amiraneli [1.4K]

Answer:

$81.52

Explanation:

The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:

Current dividend=$3.95

Year 1 dividend=$3.95*(1+5%)=$4.15

Year 2 dividend=$4.15*(1+5%)=$4.36

Year 3 dividend=$4.36*(1+5%)=$4.58

The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%

Year 4 dividend=$4.58*(1+5%)=$4.81

Year 5 dividend=$4.81*(1+5%)=$5.05

Year 6 dividend=$5.05*(1+5%)=$5.30

The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%

Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)

growth rate=5%

rate of return=10%(rate of return thereafter)

terminal value=$5.30*(1+5%)/(10%-5%)

terminal value=$111.30

current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6

current share price=$81.52

5 0
3 years ago
Other questions:
  • uring December, Rainey Equipment made a $676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5
    7·1 answer
  • Suppose the price of Vanilla Coke increases by 9% and quantity demanded falls by 13% overall, but only 4% for loyal Coca-Cola cu
    11·1 answer
  • You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year
    7·1 answer
  • Your company's HR director is a believer in trait theories of leadership. He believes that he can differentiate leaders from non
    15·1 answer
  • When the marginal benefit of an output exceeds the marginal cost?
    7·1 answer
  • HELP ASAP !
    14·2 answers
  • Import tariffs generally ________ the output of domestic producers of the affected products and also _________ the output of dom
    5·1 answer
  • Which of the following has inelastic demand: O Movie tickets Ice cream O Televisions Bread​
    9·1 answer
  • One key difference between an oligopoly market and a competitive market is that oligopolistic firms.
    8·1 answer
  • You are feeling somewhat conflicted. As the manager of a sub sandwich and soup shop, you know the employees hate to be micromana
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!