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lubasha [3.4K]
3 years ago
8

The balance in the supplies account before adjustment at the end of the year is $868. The proper adjusting entry if the amount o

f supplies on hand at the end of the year is $263 would be:
Business
1 answer:
DanielleElmas [232]3 years ago
8 0

Answer:

The adjusting entry would be:

Dr Supplies Expense or COGS $605

Cr                 Supplies or inventory account $605

Explanation:

The reason is that the inventory in hand is $263 whereas in the account is $868 which means the inventory must be reduced to $263 because the entry is wrongly passed in the system. So what we will do is decrease the inventory account by $605 ($868 - $263). This means entry must reduce inventory which is debit in nature and decrease in inventory must be then credited. The other entry would be a debit to cost of goods sold because the inventory sold must form part of the cost of goods sold so it must be debited.

The entry is:

Dr Supplies Expense or COGS $605

Cr                 Supplies or inventory account $605

Note the supplies expense account or cost of goods sold are terms interchangeably used in accounting.

Likewise supplies account and inventory account are also interchangeable terms.

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Answer:

Debit retained earnings for $15.30 million.

Explanation:

As per the data given in the question,

Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend

In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend  

which means 30 million × 1% = 0.30 million shares issued

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( Being stock dividend was issued at 1% )

Hence, Option (d) Debit retained earning for $15.30 million is correct.

8 0
2 years ago
Suppose the consumer price index in 2010 was 100 and its corresponding basket of goods was $23,000. if that same basket of goods
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The value of the CPI in 2006 is 82.61.

<h3>What is the value of the CPI?</h3>

The consumer price index measures the changes in price of a basket of good. It is used to measure inflation. Inflation is when there is a persistent rise in the general price levels.

CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

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3 0
2 years ago
Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G
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Answer:

If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.

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3 0
2 years ago
Employees are a vital part of the success of a service based business, particularly because they are normally present and intera
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Answer:

true

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employees play a significant role in the success of a service based business because they build an atmosphere of trust , confidence and loyalty among the customer by interacting with the customer while the service is being provided.

8 0
3 years ago
If interest rates increase from 8% to 9½%, we would expect to see an
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Answer:

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