For each situation, list the assumption, principle, or constraint that has been violated, if any.

Darell Hair Stylists's adjusted trial balance and statement of owner's equity follow.

il63 [147K]

Answer:

Total Assets = Total Liabilities and Stockholder's Equity = $20,200

Explanation:

An unclassified balance sheet is a type of balance sheet that does not present assets and liabilities under different categories. It only presents all assets in order of liquidity and liabilities in order of the shortness of their terms.

This can be prepared for this question as follows:

Darell Hair Stylists

Unclassifed Balance Sheet

At December 31, 2018

Particulars Amount ($)

Cash 1,000

Accounts Receivable 900

Office Supplies 600

Equipment 19,700

Accumulated Dep. - Equipment (2,000)

Total Assets  20,200 

Accounts Payable 900

Interest Payable 550

Notes Payable 3,400

Common Stock 10,650

Retained Earnings, Dec. 31, 2018 4,700

Total Liabilities and Stockholder's Equity  20,200 

Since Total Assets and Total Liabilities and Stockholder's Equity as it is normally required, that indicates that the unclasified balance sheet has been prepared accurately.

4 0

3 years ago

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.

Elodia [21]

Answer:

August 2021:

Total Cost

Aug.1 Inventory on hand—3,200 units; cost $6.50 each. $ 20,800

8 August Purchased 16,000 units for $6.70 each. $ 107200

14 August Sold 12,800 units for $13.20 each. $ 165600

18 August Purchased 9,600 units for $6.80 each. $ 65,280

25 August Sold 11,800 units for $12.20 each. $ 143,960

28 August Purchased 5,200 units for $5.80 each. $ 30,160

31 August Inventory on hand—9,400 units.

FIFO Ending Inventory $58,720

5,200 units for $ 30,160

4,200 units for $6.80 each. $ 28,560

FIFO Cost OF Goods Sold

=$ 20,800 + $ 107,200+ $ 65,280+ $ 30,160 - $58,720= 223,400-$58,720 = $ 164,720

LIFO Ending Inventory $ 62340

3,200 units; cost $6.50 each. $ 20,800

6,200 units for $6.70 each = $ 41540

LIFO Cost OF Goods Sold

=$ 20,800 + $ 107,200+ $ 65,280+ $ 30,160 -$ 62340= 223,400-$ 62340=$ 161,100

Average Cost Ending Inventory = $223,400/ 34,000= 6.570

9,400* 6.570= $ 61,763

Average Cost of Goods Sold = (Total Units - Ending Unit )* 6.57=

= $ 223,380

7 0

4 years ago

Assume PRC Corp., an equipment distributor, sells a piece of machinery with a list price of $600,000 to ACH Inc. ACH will pay $6

katen-ka-za [31]

Answer:

b. $600,000

Explanation:

The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.

The price that the company ACH pay by the product ($650,000) it's not at change on the price if not due to the payments term which is one year later, so the company ACH has to pay a financial cost because the payment will be made one year later.

6 0

3 years ago

Adding more people to a project that is falling behind schedule often causes more setbacks because of the increased complexity o

VLD [36.1K]

Mhm I would say false but just wait for someone else to answer I’m not sure.

5 0

3 years ago

Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation $ 700 11,000 6,600 2,050 13,5

MA_775_DIABLO [31]

Answer:

The computations are shown below:

Explanation:

a. Goods available for sale is

= beginning inventory + net purchase

= $11,000 + $13,500

= $24,500

The cost of goods sold is

= Goods available for sale - ending inventory

= $24,500 - $6,600

= $17,900

The gross profit is

= Net sales - cost of goods sold

= $21,500 - $17,900

= $3,600

b. For Krug service company, the net income is

= revenue - expenses

= $26,000 - $9,700

= $16,300

For Kleiner Merchandising Company, it is

= Gross profit - expenses

= $3,600 - $2,050

= $1,550

3 0

3 years ago