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user100 [1]
3 years ago
15

Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income

. Explain the consequences of this error on the current period's income statement:_______.A. Cost of goods sold will be too high by $5,000.B. Cost of goods sold will be too low by $5,000.C. The correct net income amount should have been $105,000.
Business
1 answer:
lara [203]3 years ago
4 0

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Given that

Ending inventory overstated in the current year by $5,000

And, the net income is incorrectly reported $100,000

So, due to this error

The cost of goods sold is understated by $5,000

And, the net income is overstated by $5,000

Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000

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Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for
Alina [70]

Answer:

June 1, 2021

No entry – neither party has performed under the contract.

August 1,2021

Dr.  Cash                                        $4,000

Dr.  Accounts Receivable            $700

Cr.  Unearned Service Revenue  $1,085

Cr.  Sales revenue                        $3,615

Dr.  Cost of goods Sold                $2,300

Cr.  Inventory                                 $2,300

Explanation:

As no one performed under the contract on June 1, 2021, so there will be no entry on this day.

On August 1, 2021, Windsor has 2 performance obligations

First: Delivery of the windows

&

Second: Installation of the windows

Fair value of Windows = $4,000

Fair value of Installation services = $1,200

Fair Value of Contract  = $4,000 + $1,200 = $5,200

Allocation of to revenue is based on the ratio of fair value of each performance to the total fair value of contract, As below

Windows  = ($4,000 / $5,200) X $4,700 = $3,615 (round to nearest dollar)

Installation services = ($1,200/$5,200) X $4,700 = $1,085 (round to nearest dollar)

Total Revenue recognized = $4,700

8 0
3 years ago
Which of the following people would be happy with a $10 price ceiling in this market for movie theatre popcorn bags?
dalvyx [7]

Answer:

producers of the bags of popcorn because they will sell more to the movie theater

4 0
3 years ago
Where is market equilibrium located
Lina20 [59]

Answer:

B. at the intersection of supply and demand

Explanation:

Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.

In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.  

8 0
2 years ago
Identify at least five different Human Services careers that you could pursue in your home state, and choose the three that appe
oee [108]

Answer:

Human services careers: Nurse, Child Life Specialists, Licensed Clinical Social Workers (LCSW), Psychologist, Counselor, Marriage and Family Therapist, and Behavioral Management Aide.

Explanation:

You could write about any of these ->

Try writing about being a nurse.

They help everyone in the hospital setting and the families of the patients.

Go through years of training to help people.

Put other people before them.

Three colleges that you can take nursing classes at are: NIU, UIC and Lewis university.

4 0
2 years ago
Read 2 more answers
Select the false statement from the following.
lesantik [10]

Answer: Option C.

General,selling and administrative cost cannot be assigned to a cost object.

Explanation:

General, selling and adminstrative cost is the total of both direct and indirect selling cost, administrative cost and all general cost of the organisation. This cost include all the non production cost that they company incured at a specific time bond i.e cost to sell, cost to deliver product and services, rent, cost to manage the company, marketing expenses, salaries, accounting, bonuses e.t.c.

It is not assigned to a cost object because it is general ,cost of selling, and administrative cost.

7 0
2 years ago
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