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Alchen [17]
3 years ago
12

Dinosaur Junior Corporation purchased a one-year insurance policy in January 2013 for $60,000. The insurance policy goes into ef

fect April 30, 2013. If the company neglects to make the proper year-end adjustment for the expired insurance:_________
Business
1 answer:
kozerog [31]3 years ago
5 0

Answer:

Net income and the assets will be overstated by the amount of $40,000

Explanation:

On purchasing the insurance, the accounts which got affected are the Net income as as the net income will decrease because the cash is paid against the insurance. And the assets will be affected on buying the insurance.

If the company neglects to make proper adjustment for the insurance, it will lead to overstated balance of the assets account as well as the net income of the company with the balance of $40,000 because it came in effect on April 30.

Working:

Amount = $60,000 / 12

= $5,000

For 4 months,it will be:

= $5,000 × 4

= $20,000

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Masja [62]

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<u>Explanation:</u>

Attention to detail is a significant resume ability to incorporate. The capacity to control little bits of information with precision and centre is a pivotal expertise in a wide scope of employment fields.

You have that aptitude, so you gladly express extraordinary scrupulousness as one of the advantages on your resume.

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8 0
2 years ago
Umatilla Bank and Trust is considering giving Pronghorn Corp a loan. Before doing so, it decides that further discussions with P
pickupchik [31]

Answer:

$306,620

Explanation:

Umatilla Bank and Trust

The Unadjusted inventory is $277,880

Adjustments:

1. No adjustment because the ownership is already been transferred to the buyer at shipping point.

Hence , the goods are not included in value of inventory.

2. No adjustment as the ownership will as well make transfer once the other pay will receive the inventory but the inventory is not yet recieved.

3. 27,180 ownership is with Pronghorn Corp that means it should be included in the inventory

4. 46,830 ownership is been retained by Pronghorn Corp, the inventory will as well be be included

5. 45,270 ownership is not been retained be

by Pronghorn Corp, which means it has to be excluded from the inventory.

Hence:

The adjusted inventory will be:

277,880 +27,180+46,830-45,270

= $306,620

4 0
3 years ago
Which of the following might not be an option for increasing your present income? (1 point)requesting a promotion requesting a m
Alenkasestr [34]
Answer – Quitting your job to find another
Quitting your job to find another might not be an option for increasing your present income. As a matter of fact, doing so lead to a reduction of income if a less-paying job is found after quitting the current one, or worse still total lack of income if no job is found after quitting the present job. In simple terms, if you quit your present job, there is no guarantee that you’ll find a better one. A more feasible option would be to start looking for a better job without quitting your old job. Better still, if the options are available, you may request a promotion at your present job or request a merit increase in pay.
7 0
3 years ago
Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i
Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is  </em> $692

b)   PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing  would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

                                  = (10,945 + 29651 + 21094)/19,900

                                     =$3.1

Variable cost per unit of sale = $3.1 + $0.35 =  $3.45

a) Incremental Analysis

<em>Change in Net Income:                               $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) ×   5,350 =                           7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004)                                     <u>(  6370)</u>

<em>Net income                                               </em><em><u>   692</u></em>

<em><u>b) </u></em>   PINA should accept the order because it will increase its net income by $692

<em />

6 0
3 years ago
Johnson Battery Systems recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depr
muminat

Answer:

$1,100

Explanation:

EBIT = Sales - Costs - Depreciation

       = $9,000 - $6,000 - $1,500

       = $1,500

Net income = EBIT - Tax @ 40%

                    = $1,500 - $600

                    = $900

Operating cash flow = Net income + Depreciation

                                  = $900 + $1,500

                                  = $2,400

Free cash flows:

= Operating cash flow - Increase in working capital - Capital expenditure

= $2,400 - $500 - $800

= $1,100

8 0
3 years ago
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