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3 years ago

Powers Rental Service had the following items that require adjustment at year-end.

Business

1 answer:

kirill [66]3 years ago

7 0

Answer:

a. Accounts Receivable (Dr.) $9,880

Sales (Cr.) $9,880

If not adjusted it will have impact on revenue in Income statement being understated and Receivables being understated in the balance sheet by the amount of $9,800.

b. Notes Receivable (Dr.) $650

Interest Income (Cr.) $650

If not adjusted this will have effect on Income statement in the incomes being understated and ultimately decrease in net income and in balance sheet it will understate the receivables (assets) by the amount of $650.

Explanation:

<u>1. Adjusting Entries </u>

a. Accounts Receivable (Dr.) $9,880

Sales (Cr.) $9,880

b. Notes Receivable (Dr.) $650

Interest Income (Cr.) $650

2. If a. is not adjusted it will result in understatement of accounts receivables ultimate effect on assets side of the balance sheet and sales (revenue) will also be understated and will have ultimate effect on income statement by the amount of $9,880.

If b. is not adjusted this will have effect on income statement in a decrease in net income and in the balance sheet receivables will be declined by the amount of $650 on the assets side.

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AND

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Therefore, we can conclude that the correct option of 1 is (B) and 2 is (A).

Your question is incomplete, but most probably your full question was:

1. Which of the following institutions makes up the largest part of the Federal Reserve System organization?

A. Board of Governors

B. Federal Free Market Committee

C. Federal Reserve Banks

D. Member banks and other depository institutions

2. If the United States falls into a recession, which action would the Federal Reserve take to encourage employment?

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2 years ago

Ordonez Lumber Yard has a current accounts receivable balance of $442,016. Credit sales for the year just ended were $9,358,610.

shutvik [7]

Answer:

Receivables turnover= Sales/ Accounts Receivables

Receivables turnover= $9,358,610 / $442,016

Receivables turnover= 21.173 times

Days' sales in receivables= 365 days/ Receivables turnover

Days' sales in receivables= 365 days/ 21.173 times

Days' sales in receivables= 17.239 days

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3 years ago

You are given the following data concerning Freedonia, a legendary country: Consumption Function: C = + Y Investment: I =

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Answer and Explanation:

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Y = AE = C + I

Y = 200 + 0.9Y + 300

0.1Y = 500

Y = 5000

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= 1 ÷ (1 - MPC)

= 1 ÷ (1 - 0.9)

= 10

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3 years ago

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Answer:

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