Answer:
Report a prior period adjustment decreasing retained earnings by $1,365,000.
Explanation:
Going by the question we can derive that $2,100,000 is the prior period's warranty. Consequently, it will be charged to the current year's earnings following the deduction of tax, 35%.
(2,100,000 *65) /100 = $1,365,000
This above calculation is so because Under the accrual basis of accounting...operating expense are reported on the income statement in the particular period when they took place or when they expire
Answer:
3.63%
Explanation:
Semiannual coupon payment
= $100 ÷ 2 = $50[($1,000 × 10%) ÷ 2]
The total number of compounding period = 2periods per year × 3 years = 6 periods.
By entering the following data on a financial calculator, rate is calculated as 1.81%.
Semiannual yield = 1.81%
Annual yield = 1.81% ×2 = 3.63%
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Answer:
(D) decrease revenues and decrease assets
Explanation:
Since the revenue is unearned, its entry in the books needs to be reversed.
When a revenue was recorded in the books, the like journal entry would have been.
Debit Cash/Bank/Receivables Account (thus increasing asset)
Credit Revenue Account (thus increasing revenue)
There, reversing the entry will involve decreasing revenue and decreasing asset.
