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3 years ago

Given the following errors, identify the one by itself that will cause the trial balance to be out of balance.

Business

1 answer:

ch4aika [34]3 years ago

6 0

Answer:

The correct answer is Option B.

Explanation:

(a) In this scenario, the appropriate entries should have been a debit to Salaries expense and a credit to Cash. Still, with the wrong posting the trial balance would still balance.

(b) Although the direction of the entries is correct, but there was an error in posting the number. The credit to Accounts receivable should have been $320 and not $32. So, the trial balance would be out of balance by $288.

(d) This should have been a debit to Cash and a credit to Unearned revenue of $1,900. Still, with the wrong posting the trial balance would still balance.

(e) A credit should have been passed to Accounts receivable. The journals passed have no effect on Cash. Still, with the wrong posting the trial balance would still balance.

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Again, consider Sharon, a single mother with two children under 18 who earns an annual income of $16,000. Suppose that Sharon qu

Mrac [35]

Sharon and two kids makes 3 people total with both kids being under 18, the poverty level from the table is $20,231

She gets $1000 a month for her kids. 1000 x 12 months = $12,000 per year

12,000 + her annual salary = 12,000 + 16,000 = $28,000 per year.

28,000 is greater than 20,231 so she is not living in poverty.

The answer is no

7 0

3 years ago

Swifty Company incurred the following costs during the year: direct materials $24.40 per unit; direct labor $13.10 per unit; var

DerKrebs [107]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Swifty Company incurred the following costs during the year: Direct materials $24.40 per unit

Direct labor $13.10 per unit

Variable manufacturing overhead $16.00 per unit

Variable selling and administrative costs $11.00 per unit

Fixed manufacturing overhead $132,000

Fixed selling and administrative costs $12,000.

Swifty produced 6,600 units and sold 6000 units.

A) Absorption costing= direct material + direct labor + variable overhead + fixed overhead

Absorption costing= 24.4 + 13.1 + 16 + (132,000/6,600)= $73.5

B) Variable costing= direct material + direct labor + variable overhead + Variable selling and administrative costs

Variable costing= 24.4 + 13.1 + 16 + 11= $64.5

4 0

3 years ago

In this market, the equilibrium hourly wage is $ , and the equilibrium quantity of labor is thousand workers. Suppose a senator

olga2289 [7]

Answer:

The equilibrium hourly wage is the wage where the curve of supply of labor intersects with that of the demand for labor. The same goes for the equilibrium quantity of labor.

The equilibrium hourly wage is $10, and the equilibrium quantity of labor is 450 thousand workers.

If a Senator introduces a minimum hourly wage, this is considered a Price Floor. 

Price floors are prices that that the government mandates that one cannot charge below for a good or service. If there is a price floor on cake for instance, a person is not allowed to charge less than that price floor for cake. The Senator's bill is therefore saying that people should not be paid less than $6 an hour.

7 0

3 years ago

Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management pl

LUCKY_DIMON [66]

Answer:

Icarus total value: 478,459,899

Explanation:

We will calcualte the WACC to know the cost of capital for the company:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14

Equity weight 0.79

Kd 0.07

Debt Weight 0.21

t 0.4

$WACC = 0.14(0.79) + 0.07(1-0.4)(0.21)$

WACC 11.94200%

Now we calcualte the value of the company:

$\frac{FCF}{return-growth} = Intrinsic \: Value$

59,000,000

(21,000,000)

38,000,000 Free Cash flow ofthe Firm

$\frac{38,000,000}{0.11942-0.04} = Intrinsic \: Value$

$\frac{38,000,000}{0,07942} = Intrinsic \: Value$

Value: 478.468.899

7 0

3 years ago

Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $1040 June 10

grandymaker [24]

Answer:

a. $1508

Explanation:

June 1 150 units

June 10 200 units

June 15 200 units

June 28 150 units

Total 700 units

Out of above, only 210 units are in hand. Under LIFO method, 150 units are from 1st June and 60 units are from 10th June.

Date Units (a) Per unit cost (b) Ending inventory (a*b)

June 1 150 $6.93 (1040/150) $1.040

June 10 60 $7.8 (1560/200) $468

Total 210 $1,508

So, using the LIFO inventory method, the value of the ending inventory on June 30 is $1,508

3 0

3 years ago