Answer:
$18,910.00
Explanation:
Monthly rent $1240
Extra monthly charge $160
Electricity $90
Other utilities $860 per year
Insurance $170 per year
The monthly rent per year will be
=$1240 x 12
=$14,880
Parking charges per year
=$160 x 12
=$1,920
Electricity charges per year
=$90 x 12
=$1,080
Other utilities per year
=$860
Insurance per year
=$170
The annual cost will be
=$14,880 + $1,920 + $1,080 + $860 + $170
=$18,910.00
Answer:
Sparrow Co's automobiles are premium brands that command premium prices
Explanation:
The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.
Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.
It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby eliminating excessive costs of holding inventory.
All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.
Answer:
B net income is overstated, assets are overstated, and stockholders' equity is overstated
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
Hence, where ending inventory balance is overstated, cost of goods sold is understated. When cost of goods sold is understated, gross and net incomes are overstated. Hence owner's equity is overstated and asset overstated.
Answer:
Thee jounal entry for January 1 of Messing Company is done below.
Explanation:
3.5% * 4000 = 140
Date Account Titles Dr Cr
Jan 1 Cash $3,860
Credit Card Expense 140
Sales Revenue 4,000
Answer:
The correct answer is add $72 to the book's balance.
Explanation:
Bank reconciliation is a way of identifying discrepancies between the cash book balance (company's books) and the bank balance (balance per bank statement). The discrepancies can be as a result of erroneous posting, deposit in transit, outstanding checks, etc.
In the instance of the question, there was an erroneous posting in the cash book of $72 ($480 - $408). Instead of crediting cash book by $408, it was rather credited by $480 - meaning that the credit was overstated by $72. <em>To correct this erroneous posting, we have to add back $72 to the cash book balance.</em>
