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8090 [49]
3 years ago
9

Ms. Garden, the company bookkeeper, recorded the annual repair costs on the company's machinery as an increase to the machinery

account. As a result, which of the following statements correctly describes this situation?
a) Assets will be overstated
b) stockholders equity will be understated
c) expenses will be overstated
d) liabilities will be overstated
Business
1 answer:
iren [92.7K]3 years ago
8 0

Answer:

a) Assets will be overstated

Explanation:

Annual repairs costs are operating expenses that should be debited to the repair and maintenance account. The amount should increase the repair and maintenance account and, consequently, expenses for that period.

If the repair expenses are debited to the asset account, assets increase in value. Since the repair costs are wrongfully posted,  the assets will be overstated. On the other hand, expenses will be understated

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Answer: 62.5%

Explanation:

Equivalent units = Units completed and transferred out + percentage completed of ending inventory

14,800 = (1,100 + 14,000 - 800) + Percentage

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Percentage amount completed = 500 units

Percentage = Ending equivalent units / ending inventory

= (500/800) * 100

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3 years ago
What is home equity?
shepuryov [24]
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Below is the aging of receivables schedule for Evers Industries. Aging-of-Receivables Schedule November 30 Customer Balance Not
Murrr4er [49]

Answer:

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            allowance for doubtful account    47,972 credit

Explanation:

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As we are presented with all date we should proceed directly with the journal entry:

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