Answer:
<u>Journal 1</u>
Debit : Prepaid Expense $37,600
Credit : Cash $18,800
Credit : Insurance Expense $18,800
<u>Journal 2</u>
Debit : Dividends $18,000
Credit : Wages $18,000
Explanation:
Journal 1
The first error has to be corrected by debiting the Prepaid Expenses by twice the amount paid to cancel the effect of a credit entry made to that account. Cash is credited to show the correct credit entry that was supposed to be made. Insurance expense is credited to cancel the debit entry made to this account in error.
Journal 2
The error made is called error of principle. This is were the transaction is recorded in the wrong class of accounts. Simply, Debit the Dividends and credit the Wages Account to record and reverse the error out of the Wages Account into the Dividends Account.
Answer:
three
Explanation:
The Truth-in-Lending Act (TILA) applies to home loans. It requires lenders to disclose all costs related to a home loan, provides rescission rights for some transactions, and impose restrictions on home equity credits. But the TILA cannot set the interest rates or other fees charged by the lender, it only requires the lender to disclose the complete information, e.g. APR, monthly payments and amount financed.
Answer:
Explanation:
Please check attachment for the solution to the question.
Answer:
Operating Income 20,600
Explanation:
First Step will be to calculate the contribution of the begining inventory and the contribution of the untis produced in this period:
BEGINNING INVENTORY
70 units at $150 = $10,500
cost of BI $3,600
Contribution Begining Inventory $6,900
get the production of this year contribution
Sales Units 150
Direct Materials 25
Direct Labour 10
Variable MO 15
Variable S&A 6
Total Variable 56
Contribution 94
Unit produced 450
Contribution Produced units 42300
Second, the operating income:
Contribution Begining Inventory $6,900
+ Contribution Produced units 42,300
Total contribution = 49,200
Fixed Cost
fixed MO 15,600
fixed S&A 13,000
Total Fixed Cost 28,600
Operating Income 20,600
