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Step2247 [10]
3 years ago
11

Adjustment error. The accountant for Stringer Services failed to adjust the Supplies account to recognize the amount consumed du

ring March. As a result of this error, will the following items be overstated, understated, or unaffected? a. March revenues will be ________________. b. March expenses will be ________________. c. March net income will be _______________. d. Ending owner’s equity as of March 31 will be _________________. e. Assets as of March 31 will be __________________. f. Liabilities as of March 31 will be _________________.
Business
1 answer:
gladu [14]3 years ago
6 0

Answer:

a. unaffected

b. understated

c. overstated

d. overstated

e. overstated

f. unaffected

Explanation:

The journal adjustment entry for supplies consumed should be;

Supplies expense A/C                                            Dr.

     To Supplies  A/C                                    

(Being supplies consumed recorded)

Supplies expense being an expense and supplies being an asset, the omission would lead to understated expenses since the expense has not been recorded and overstated assets since the cost of supplies used was supposed to be reduced from assets balance.

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Consider the recorded transactions below.
AnnZ [28]

Answer:

1. T-accounts:

Accounts                           Debit        Credit

Accounts Receivable

Balance                           $4,200

Service Revenue              8,400

Cash                                                 10,200

Accounts                           Debit        Credit

Service Revenue

Accounts Receivable                         8,400

Accounts                           Debit        Credit

Supplies

Balance                              $400

Accounts Payable            2,300

Balance c/d                                       $2,700

Accounts                           Debit        Credit

Accounts Payable

Balance                                            $3,500

Supplies                                             2,300

Cash                                $3,700

Balance c/d                      $2,100

Accounts                           Debit        Credit

Cash Account

Balance                           $3,400

Accounts Receivable      10,200

Advertising                                       $1,000

Accounts Payable                              3,700

Deferred Revenue            1,100

Balance c/d                                    $10,000

Accounts                           Debit        Credit

Advertising Expense

Cash                                  1,000

Accounts                           Debit        Credit

Accounts Payable

Cash                                3,700

Accounts                           Debit        Credit

Deferred Revenue

Balance                                             $300

Cash                                                   1,100

Balance c/d                      $1,400

Explanation:

a) Data:

General Entries:

Accounts                           Debit        Credit

1. Accounts Receivable   8,400

Service Revenue                                  8,400

2. Supplies                      2,300

Accounts Payable                                2,300

3. Cash                           10,200

Accounts Receivable                         10,200

4. Advertising Expense   1,000

Cash                                                     1,000

5. Accounts Payable      3,700

Cash                                                    3,700

6. Cash                            1,100

Deferred Revenue                              1,100

b) The beginning balance of each account before the transactions is:

Cash, $3,400

Accounts Receivable, $4,200

Supplies, $400

Accounts Payable, $3,500

Deferred Revenue, $300

6 0
2 years ago
All of the following are tests for determining qualifying child status except the ______.A. gross income testB. age testC. suppo
Viktor [21]

Answer:

a. gross income test

Explanation:

because quailfying children must pass the relationship, age support, residence tests.However,there is no requirement relating to gross income for purposes of the qualifying child test.

4 0
3 years ago
If Rajiv's Fire Engines were a competitive firm instead and $125,000 were the market price for an engine, decreasing its price f
Sonbull [250]

Answer:

b) False

Explanation:

The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own.  This will in turn drive sales and the production quantity to increase marginally in the short-run.  However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.

5 0
2 years ago
a type of long term permanent financing for residential construction or large construction projects, that replaces the construct
shepuryov [24]

A type of long term permanent financing for residential construction or large construction projects, that replaces the construction loan is called a takeout loan.

<h3>What is a takeout loan?</h3>

A takeout loan is a method of financing whereby a loan that is procured later is used to replace the initial loan.

More specifically, a takeout loan, or takeout financing, is long-term financing that the lender promises to provide at a particular date or when particular criteria for completion of a project are met.

A take-out loan provides a long-term mortgage or loan on a property that "takes out" an existing loan.

The take-out loan will replace interim financing, such as replacing a construction loan with a fixed-term mortgage.

If the take-out loan is used to finance a rental or income-generating property, the take-out lender may be entitled to a portion of the rents earned.

To learn more about take-out loan, refer

brainly.com/question/1415802

#SPJ4

5 0
11 months ago
Why did the artist, Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire l
Harman [31]

<u>The reason that Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire life:</u>

Pablo Picasso and Vincent van Gogh had more features in common. They had unanimously indistinct style of arts which had become immediately identifiable.

In spite of all that, Picasso died as a rich man owning an estate which is estimated at nearly 750 million dollar whereas Van Gogh died as a pauper.

Studies claim that the reason behind this would be that, Van Gogh remained to be a loner and socially inactive. He was depending on his brother to meet the social world and in contrast Picasso was a charismatic active member in various social clubs where her had multiple number of contacts and connections.

It's been said that Pablo Picasso was a hub who had a vast network of social lines and Vincent Van Gogh was a silent or solitary node.

But now, the paintings of both the greatest artists were well spoken and sell for more than 100,000,000 US Dollars.

5 0
3 years ago
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