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
serious [3.7K]
3 years ago
7

Ashton Company uses the perpetual method. The company's inventory account had a $6,600 balance as of December 31, Year 1. A phys

ical count of inventory shows only $5,900 of merchandise in stock at December 31, Year 1. How does the related adjusting entry affect the financial statements?
Business
1 answer:
Lunna [17]3 years ago
7 0

Answer:

Decrease Profit and Inventory Asset value as well.

Explanation:

This will Decrease the closing inventory value which will increase the cost of goods, decrease the profit and ultimately decrease the retained earning value in the balance sheet. It also decrease the Inventory value in the current assets section of balance sheet, which will ultimately decrease the total asset value.

You might be interested in
Equity method for stock investment Obj. 3 Show Me How icon At a total cost of $5,600,000, Herrera Corporation acquired 280,000 s
marusya05 [52]

Answer and Explanation:

The journal entries are shown below:

1 Investment in Tran Corp $210,000  

         To Investment Income (280,000 ÷ 800,000 × $600,000)  $210,000

(Being the investment in Tran corp. is recorded)  

For recording this we debited the investment in tran corp as it increased the assets and credited the investment income as it also increased the revenue

2 Cash (280,000 × $0.50) $140,000  

           To Investment in Tran Corp  $140,000

(Being the payment of cash dividend is recorded)  

For recording this we debited the cash as it increased the assets and credited the investment in tran corp as it decreased the assets

(B) The equity method is appropriate as the Herrera owns 35% which come from

= $280,000 ÷ $800,000

= 35%

And it can be exercised when there is a significant influence or effect over the investor

6 0
3 years ago
Which of the following things can you do to improve your credit score?
Art [367]
Use your credit card and pay it off each month
6 0
3 years ago
Read 2 more answers
Two months ago, Air-tite Corporation purchased 4,500 pounds of Hydrol, paying $15,300. The demand for this product has been very
Anna007 [38]

Answer: The $4.05 market price

Explanation: Air-tite can buy or sell Hydrol at $4.05. If they decide to accept the order, there has to be a higher return on the use of Hydrol in the return than they would get from selling Hydrol as is.

There may also be an opportunity cost to using the product for this special order if there is an order that would yield higher returns for the use of Hydrol.

The quantity that would remain after making the special order does not have any impact on the decision making process, as they are considering just one order that requires Hydrol.

The purchase price is not relevant as they cannot purchase Hydrol at that price in the present. The total quantity is not relevant either as they have enough for the order.

3 0
3 years ago
Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units.HUDSON CO. Co
gizmo_the_mogwai [7]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $244

Unitary variable cost= 195 - 8= $187

Fixed costs= 327,600 + 37,000= $364,600

<u>We need to determine the new pre-tax income:</u>

Sales= 244*10,000= 2,440,000

Total variable cost= 187*10,000= (1,870,000)

Total contribution margin= 570,000

Fixed costs= (364,600)

Pre-tax income= 205,400

5 0
3 years ago
The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and
olga_2 [115]

Answer:

Explanation:

incorrect answer

a credit balance of $7500

correct answer

a debit balance of $7500.

6 0
3 years ago
Read 2 more answers
Other questions:
  • The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option o
    11·1 answer
  • The shortest type of distribution channel is called a _____.
    12·1 answer
  • Kubin Company’s relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average cos
    11·1 answer
  • Using the supply and demand for loanable funds model, explain why the central bank may aggressively expand the monetary base.
    5·1 answer
  • Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1)
    5·1 answer
  • Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
    12·1 answer
  • The demand curve shows an inverse ,or negative , relationship between
    9·1 answer
  • Describe about comparative cost and absolute advantages of international trade​
    14·1 answer
  • Consider a market served by a monopolist, Firm A. A new firm, Firm B, enters the market and, as a result, Firm A lowers its pric
    12·1 answer
  • _____ is the most common, real-world method of estimating projects. Group of answer choices Delphi Technique Time Boxing Bottom-
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!