Poppy co. uses a periodic inventory system. beginning inventory on january 1 was understated by

1 answer:

8 0

Poppy co. uses a periodic inventory system. Beginning inventory on January one was understated by $30,000, and its ending inventory on December thirty-one was understated by $17,000. A purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, Prunedale's cost of goods sold for this year was: Understated by $31,000.

You might be interested in

On the last day of December 2013, Tom’s Trucks entered into a transaction that resulted in a receipt of $108,000 cash in advance

VikaD [51]

Answer:

Explanation:

1. Service revenue (December 31, 2013) income statement = $582,735 + $64,000 = $646735

Company also performed $64,000 of services which were neither billed nor paid,adjusting entry:

Dr Accounts receivable 64000

Cr Service revenue 64000

2. Amount reported on the December 31, 2013 balance sheet as unearned revenue = $108,000

unearned revenue - revenue which has not been earned yet, but recorded in accounts

3. Amount reported on the December 31, 2013 balance sheet as accounts receivable = $64,000

Accounts receivable 64000

To service revenue 64000

7 0

4 years ago

Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax inci

lara [203]

Answer:

The description is outlined in the clarification segment below, as per the case provided.

Explanation:

The prevalence of either a lifetime tax on some kind of fixed income has been known to be a long-term perspective including its broader economic impact of taxation since they complement instead of just replace.
The existing income taxes would raise the quarterly funds to meet, but perhaps the cumulative occurrence of tax would enhance the power to charge for existence.

5 0

3 years ago

Hahn Co. prepared financial statements on the cash basis of accounting. The cash basis was modified so that an accrual of income

jeyben [28]

Answer: the answer is A. Yes.

Explanation:

Under a strict cash basis of accounting, revenues and expenses are recorded only when cash is received or paid. Under a modified cash basis of accounting, certain accruals and/or deferrals are recorded for financial-statement purposes.

The most common modifications are the capitalization and amortization of long-lived assets and the accrual for income taxes (recognition of income tax expense and related liability).

8 0

4 years ago

You are a consulting firm intern and your job is to help a client choose investment projects. Your client, RealEstate, is a youn

steposvetlana [31]

Answer:

(f)None

Explanation:

Pay back period is the no of years in which cost of investment is recovered in the form of cash flow.

Project with cash back period of two years is acceptable .

Project 1

initial outlay of fund = 100 million dollar

cash flow in first two years = 50+50 = 100 million dollar