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
Gelneren [198K]
3 years ago
11

Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct

balances at December 31 for the accounts both before and after the adjusting entries.
Trial Balance, December 31 of the Current Year
Before After
Adjusting Entries Adjusting Entries
Items Debit Credit Debit Credit
a. Cash $ 13,600 $ 13,600
b. Accounts receivable 430
c. Prepaid insurance 720 480
d. Equipment 169,880 169,880
e. Accumulated depreciation, $ 41,400 $ 46,700
equipment
f. Income taxes payable 1,920
g. Common stock and 110,000 110,000
additional paid-in capital
h. Retained earnings, January 1 15,680 15,680
i. Service revenue 72,500 72,930
j. Salary expense 55,380 55,380
k. Depreciation expense 5,300
l. Insurance expense 240
m. Income tax expense 1,920
$ 239,580 $ 239,580 $ 247,230 $ 247,230
Compute the amount of net income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting entries.
Business
1 answer:
JulsSmile [24]3 years ago
7 0

Answer:

Please solution below

Explanation:

Computation of the amount of net income based on;

Adjusting entries (Amounts before)

Sales revenue.

$72,500

Less Expenses;

Depreciation exp.

Nil

Insurance expense

Nil

Salary expense

($55,380)

Income tax expense

Nil

Net income

$17,120

Adjusting entries(Amounts after)

Service revenue

$72,930

Less expenses:

Depreciation expense

($5,300)

Insurance expense

($240)

Salary expense

($55,380)

Income tax expense

($1,920)

Net income

$10,090.

•Note: The net income value of $10,090 after adjusting the entries is correct because all revenue and expenses were factored, in arriving at the figure, while the net income value of $17,120 before adjusting the entries, is incorrect due to the fact that it does not take cognizance of revenue of $430 and expenses of $7,460.

You might be interested in
Louis has invested $1,000 in the stock market. At the end of one year, there is a 30% chance that his stock will be worth only $
Sphinxa [80]
The answer is C 1,080
5 0
2 years ago
Describe two ways in which the organisation supports the community?​
enyata [817]

Explanation:

<em><u>This often includes inclusive networking, interpersonal organizing, listening, reflexivity, non-violent communication, cooperation, mutual aid and social care, prefiguration, popular education, and direct democracy.</u></em>

3 0
3 years ago
Read 2 more answers
Marshall has received an inheritance and wants to invest a sum of money today that will yield $4,800 at the end of each of the n
In-s [12.5K]

Answer:

B

Explanation:

We are to find the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 10 = $4,800

I = 5%

Present value = 37,064.16

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

3 0
3 years ago
Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free
AVprozaik [17]

Answer:

itififjdjidkridjdjjr

6 0
3 years ago
All of the following are capital assets EXCEPT: 100 shares of UVX stock. A car used by a ride-hail service driver. A fully rente
Bezzdna [24]

Answer:

A fully rented apartment building

Explanation:

Capital assets are a term that describes substantial portions of property including homes, cars, stocks, bonds, etc. In other words, specifically in business, a capital asset is defined by its valuable life which is extended than a year and is not planned for sale at a typical period of business's operation.

Hence, in this case, the right answer is A fully rented apartment building

8 0
3 years ago
Other questions:
  • According to the U.S. Department of Labor, the average American has had how many jobs before the age of 32? A. Four b. At least
    12·2 answers
  • The basis of accounting used by not-for-profit organizations in their external financial reports is
    13·1 answer
  • To manufacture 3,000 pairs of sandals in a week, a firm can use 3,600 workers and 135 machines or 270 machines and 3,300 workers
    15·1 answer
  • If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Yea
    5·1 answer
  • Lisa Richter deposited $5,000 at 4% compounded semiannually for three years. At the beginning of the fourth year, Lisa deposited
    5·1 answer
  • Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing ch
    6·1 answer
  • On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,
    5·1 answer
  • Echota Corporation has the following capital stock outstanding at December 31, 2020: 7% Preferred stock, $100 par value, cumulat
    14·1 answer
  • All of the following are examples of healthful breakfast except
    15·2 answers
  • The difference between total assets of a firm and its total liabilities is called_______.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!