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
zhuklara [117]
3 years ago
7

Molly's auto detailers maintains its records on the cash basis. During 2018, molly's collected $72,800 from customers and paid $

20,400 in expenses. Depreciation expense of $4,900 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $4,500, prepaid expenses decreased $1,900, and accrued liabilities decreased $1,700. Molly's accrual basis net income was
Business
1 answer:
igor_vitrenko [27]3 years ago
6 0

Accrued Net Income will be calculated as below:

Sales                                                    $72800

Less Expenses                                     $20400

Cash Income                                         $52400

Less: Depreciation                                 $4900

Add: Accounts Receivable Inc              $4500

Less: Reduction in Prepaid Exp             $1900

Add: Reduction in Acc Liab                    $1700

Accrued Income                                   $51800

Depreciation will be reduced as its an expense and all expenses will be reduced.

Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added

Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses

Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.

You might be interested in
Brainliest Week
iren [92.7K]

Answer:

B Cost of ingredients for cupcakes rises.

Explanation:

5 0
3 years ago
Read 2 more answers
Which activity is a good practice when selling online media?
nikdorinn [45]

Answer:

For Plato the answer is D: Avoid quoting too high a price.

Explanation:

I got it right

4 0
3 years ago
Soprano Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run
Nuetrik [128]

Answer:

$850,000

Explanation:

Total Hours of Department 1=$80,000+$90,000

=$170,000/$200,000*1000,0000

8 0
3 years ago
Over the years, Hampton Industries' stockholders have provided $40,000,000 of capital when they purchased new issues of stock an
11Alexandr11 [23.1K]

Answer:

Hampton Industries

Hampton's Market value added (MVA) is:

= $12,000,000

Explanation:

a) Data and Calculations:

Stockholders' Equity = $40,000,000

Common stock outstanding = 1,000,000

Market price per share = $52

Market capitalization = $52,000,000 ($52 * 1,000,000)

Market value added (MVA) = $12,000,000 ($52,000,000 - $40,000,000)

b) The market value added (MVA) is the difference between the market capitalization of Hampton's stock and the capital contribution of stockholders.

3 0
2 years ago
A branch of accounting that generates reports and information for the use of internal management for decision making purpose is
earnstyle [38]

Answer:

financial accounting and management accounting

8 0
3 years ago
Other questions:
  • Kohlberg's theory of moral development can best be summarized as characterizing children's moral development as a process of pro
    15·1 answer
  • The circulation of the ocean currents in the southern hemisphere is generally
    9·1 answer
  • Kayleigh is looking over a number of material requisition slips from her employees. She has to sign off on each request after re
    5·1 answer
  • In a market system:
    10·1 answer
  • A large offshore oil field has attracted the interest of many oil drillers. The oil field is not owned by​ anyone, and any firm
    6·1 answer
  • Lucia and Kenji need to decide which one of them will take time off from work to complete the rather urgent task of shearing the
    9·1 answer
  • Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
    11·1 answer
  • Johnny Come Lately Computers (JCMC) has 20,000 bonds outstanding, selling at 98 percent of par; 300,000 shares of stock outstand
    5·1 answer
  • M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can
    9·1 answer
  • PLEASE HELP
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!