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hjlf
3 years ago
13

At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up

/ expired was accidentally omitted. Which of the following statements is true?
a. total assets at the end of the year will be understated.
b. insurance expense will be overstated
c. stockholders' equity at the end of the year will be understated.
d. net income for the year will be overstated.
Business
1 answer:
TEA [102]3 years ago
6 0

Answer:

d. net income for the year will be overstated.

Explanation:

The prepaid rent account is used to record the amount paid in advance for rent. Once the amount is paid, the entries required are

Debit Prepaid rent

Credit Cash account

On subsequent use of the rent, the required entries are

Debit Rent expense

Credit Prepaid rent

As such where at the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted, net income for the year will be overstated as the rent expense that would have been posted to reduce it would have been omitted.

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The following transactions were completed by Daws Company during the current fiscal year ended December 31:
boyakko [2]

Answer:

Explanation:

The T account is presented below:

                          Allowance for Doubtful Debts  

Jan 29                  $5,850                      Jan 1 Beginning balance $54,200

Aug 9                   $11,850                      April 18                 $4,000

Dec 31                  $52,160                     Nov 7                    $7,000

Dec 31   Unadjusted

              balance    $4,660                

                                                          Dec 31 Adjusting entry   $64,660

                                                          Dec 31 Adjusted balance $60,000

4 0
3 years ago
makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Dire
Ugo [173]

Answer:

$171 Favorable  

Explanation:

Actual Variable Overhead Rate = Actual variable overhead cost / Actual direct labor-hours used

Actual Variable Overhead Rate = $9,531 / 2,310

Actual Variable Overhead Rate = $4.125974

Variable overhead rate variance = (Standard rate - Actual rate) * Actual Direct labor hours

Variable overhead rate variance = ($4.20 - $4.125974) * 2310

Variable overhead rate variance = $0.074026 * 2310

Variable overhead rate variance = $171 Favorable  

6 0
3 years ago
Which of the following terms refers to using wooden structures or mechanical or hydraulic systems to support the sides of an exc
MakcuM [25]
The answer is shoring
5 0
3 years ago
Read 2 more answers
What is the nash equilibrium for this​ game?
NeTakaya
<span>The  nash</span> equilibrium would be A. <span> bp and the mini-mart will both not advertise.
The nash equilibrium happens when all of the competitors choose the decision that give the optimal outcome for both of them.
If Bp and mini-mart both choose not to advertise they both will have a similar profit.</span>
4 0
3 years ago
You are given an investment to analyze. the cash flows from this investment are end of year 1. $19,340 2. $2,280 3. $26,600 4. $
AleksandrR [38]
PW = FW×(1+i)^-n

PW = $19340×1.15^-1 + $2280×1.15^-2 + $26600×1.15^-3 + $24240×1.15^-4 + $8770×1.15^-5 = $54250.90

hence PW = $54250.90
6 0
3 years ago
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