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Scrat [10]
3 years ago
15

Prior period adjustments are reported in the: Multiple Choice Multiple-step income statement. Statement of cash flows. Single-st

ep income statement. Statement of retained earnings. Balance sheet.
Business
1 answer:
beks73 [17]3 years ago
3 0

Answer:

Statement of retained earnings.

Explanation:

The prior period adjustment refers to the adjustment in which there is an accounting error in the previous period and i.e to be reported in past year period but now it would be corrected in the financial statement. This adjustment we called prior period adjustment

Moreover, it should be reported in the statement of retained earnings

Hence, the second last option is correct

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Match each type of savings account with its features. members own it interest rate rises and falls with the market minimal overh
Rudiy27

This is a little hard to read but:

Youth savings - schools often sponsor it

Stock-indexed - rate rises and falls with the market

Credit Union - members own it

Online Account - minimal overhead means higher interest

3 0
3 years ago
Read 2 more answers
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 30
Anon25 [30]

Answer:

Please find the detailed answer in the explanation section.

Explanation:

A. 4% of credit sales

Bad Debts Expense is 4% of $301,000

0.04 x $301,000

=$12,040

Adjusting entry

Dec. 31

Dr Bad debt expense $12,040

Cr Allowance for Doubtful allowance $12,040.

B. 2% of total sales

Total sales = cash sales + credit sales

$ 901,000 + $ 301,000

=$1,202,000

Bad Debts Expense is 2% of 1,202,000

0.02x $1,202,000

=$24,040

Adjusting entry

Dec. 31

Dr Bad debt expense $24,040

Cr Allowance for Doubtful allowance $24,040.

C. 7% of year-end accounts receivable.

Unadjusted balance is $5,100

Estimated balance = $8,820(7% of $126,000)

Adjusted balance is $13,920($5,100 + $8,820)

Adjusting entry

Dec. 31

Dr Bad debt expense $8,820

Cr Allowance for Doubtful allowance $8,820

5 0
2 years ago
Net working capital increases when: Multiple Choice inventory is sold at cost. fixed assets are purchased for cash. inventory is
sashaice [31]

Answer:

d. inventory is sold at a profit

Explanation:

Net working capital increases when <u>inventory is sold at a profit</u>

Net working capital = Current Assets - Current Liabilities . Cash, Inventory and receivables are part of current assets

Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact

6 0
2 years ago
According to CEO Heidi Ganahl, Camp Bow Wow requires a strong and consistent corporate culture to keep all local franchise owner
geniusboy [140]

Answer:

The correct answer is letter "A": are inflexible and incapable of adapting to environmental change.

Explanation:

Strong consistent cultures are characterized by having endured during long periods of history. Their success in enduring relies on certain strict behaviors and rules adopted by their followers. At the same time, one of the features of these cultures is that they are reluctant to change or to adopt new trends to their way of living.

4 0
3 years ago
Mark or Make is a bourbon distillery. Sales have been steady for the past three years, and operating costs have remained unchang
schepotkina [342]

Answer:

a. No allocation

                                                      2019       2020       2021

Gross Profit on Sales                350,000  349,000   351,000

Less: Operating Expense         <u>210,000</u>   <u>210,000</u>    <u>210,000</u>

Gross Revenue                         140,000   139,000    141,000

Rent (Prepaid)                                 0                0               0

Revenue after Rent paid           140,000   139,000    141,000

Less: Corporate Taxes at 30% <u>42,000         41,700        42,300</u>

Net Income                               <u>$98,000    $97,300    $98,700</u>

<u></u>

Considerations for No Allocation

- Taxes are to be deducted from Gross Profit.

- Rent not to be deducted from Gross Profit.

b. Comprehensive Allocation

                                                      2019       2020       2021

Gross Profit on Sales                350,000  349,000   351,000

Less: Operating Expense         <u>210,000</u>   <u>210,000</u>    <u>210,000</u>

Gross Revenue                         140,000   139,000    141,000

Rent (Prepaid)                            <u>60,000</u>    <u>60,000</u>       <u>60,000</u>

Revenue after Rent paid           80,000    79,000        81,000

Less: Corporate Taxes at 30%  <u>24,000</u>    <u>23,700</u>       <u>24,300</u>

Net Income                                 <u>56,000</u>    <u>55,300</u>       <u>56,700</u>

Considerations for Comprehensive Allocation

- Taxes are to be deducted from Gross Profit.

- Rent is to be deducted from Gross Profit.

c. No allocation distorts Mark or Make’s Net Income for all three years. This is because if Rent is not allocated taxes will be calculated on Gross Revenue. That is to say, Rent is a Non-Operating Expense and hence is to be deducted from Revenue to Calculate the Taxes. When Revenue is reduced, obviously, the taxes will be reduced. Hence, less income is seen in Comprehensive Income Statement and more Revenue is seen in Simple - Non Comprehensive Statement.

4 0
2 years ago
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