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GREYUIT [131]
3 years ago
10

Oriole Inc. reported total assets of $2407000 and net income of $324000 for the current year. Oriole determined that inventory w

as overstated by $25500 at the beginning of the year (this was not corrected). Ignoring income taxes, what is the corrected amount for total assets and net income for the year?
Business
1 answer:
swat323 years ago
4 0

Answer:

Total Asset $2,381,500

Net income $298,500

Explanation:

Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.

The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.

To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.

Total Asset = $2,407,000 - $25,500 = $2,381,500

Net Income = $324,000 - $25,500 = $298,500

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Change management is the process of preparing your organization for growth and creating processes that effectively deal with a developing marketplace. The objective of change management is to create a dynamic organization that is prepared to meet the challenges of your industry.
6 0
2 years ago
Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of directors declared a stock di
andrey2020 [161]

Answer:

e. Debit Retained earning $49,280 Credit Common stock dividend distributable $35,200

Credit Paid in capital in excess of par value(Common stock) $14,080

Explanation:

The journal entry is as follows:

Retained earnings (3,520 shares × $14)

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Cr $35,200

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Cr $14,080

3 0
3 years ago
A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 yea
eduard

Answer: 10 years to call

Explanation:

Maturity period = 25 years

Coupon rate = 7%

6.25% basis is,

  • Callable in 10 years at 103
  • Callable in 15 years at 102
  • Callable in 20 years at par

This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.

Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.

8 0
3 years ago
What is the different between consumer and customer?​
lara31 [8.8K]

Answer:

this is your answer good day

Explanation:

Customer – one who is a recipient of services or products from a company or individual for money … costumer-is someone who sells or makes costumes. customer-is someone who buys from shop or company.

7 0
3 years ago
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What are the shops called that are in the middle of the mall?
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Those shops which are located in the mid of the mall and operated from there are called as Mall Koisk.

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