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Orlov [11]
2 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]2 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.

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________ is another term for a defensive strategy.
Westkost [7]

Another term that can be used for Defensive strategy is retrenchment strategy.

  • Defensive strategy can be regarded as marketing tool which is been used by companies in  retaining valuable customers that can be easily loose to their competitors.
  • Competitors can be regarded as  other firms that are present in the same market selling almost similar products
  • This strategy is been utilized by  companies in market leadership positions in defending market share from attacks by challengers;
  • Some if the defence strategies are;

<em>counter-offensive defence</em>

<em>contraction defence</em>

<em> position defence</em>

<em>mobile defence</em>

<em>flanking defence</em>

<em> pre-emptive defence</em>

Therefore, defensive strategy can be explained as marketing tool that is been utilized by management in defending  their business from potential competitors.

Learn more at: brainly.com/question/9063582?referrer=searchResults

6 0
2 years ago
Bravo company had $5,100 of supplies on hand at the beginning of 2016. on march 31 bravo purchased an additional $12,400 of supp
lana66690 [7]
Supplies expense is $11,400.00.

Expenses = Beg Inv + Addl Inv - Remaining
                 = 5,100 + 12,400 - 6,100
                 = 11,400
8 0
3 years ago
Read 2 more answers
True or false most small business owners enjoy being part of a team
Mandarinka [93]
I believe the answer is false
4 0
3 years ago
The goal of study skills and strategy instruction is to
Norma-Jean [14]
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3 0
3 years ago
Fitz Company reports the following information.
Paha777 [63]

Answer and Explanation:

The preparation of the operating activities section is presented below:

Cash flows from operating activities

Net income  $374,000

Adjustments made  

Add: Depreciation  $44,000

add: Amortisation expanses  $7,200

Add: Accounts receivable decrease  $17,100

Add: Inventory decrease  $42,000

Less: Prepaid expense increase  -$4,700

Less: Accounts payable decrease  -$8,200

Add: Wages payable increases  $1,200

Less: Gain on sale of machinery  -$6,000

Net cash provided by operating activities  $466,600

4 0
2 years ago
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