1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Amanda [17]
3 years ago
5

The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Earl

y in 2022, the following errors were discovered.
1. Depreciation of equipment for 2020 was overstated $15,900.
2. Depreciation of equipment for 2021 was understated $37,500.
3. December 31, 2020, inventory was understated $48,400.
4. December 31, 2021, inventory was overstated $15,800.
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.
Business
1 answer:
Phoenix [80]3 years ago
5 0

Answer:

Dr retained earnings($21,600+$15,800) $37,400.00

Cr  accumulated depreciation                                         $21,600

Cr inventory                                                                       $15,800

Explanation:

The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.

The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available  for sale would be introduced as opening inventory in 2021.

net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00

hence retained earnings would reduce by $21,600.00

for the overstatement of inventory,retained earnings would reduce by $15,800

You might be interested in
Which Theme should I choose for a summer wedding?
hoa [83]

I think you should do a Beach theme. It would be beautiful if you had a pavilion you could get married with the crashing waves behind you! <3

5 0
3 years ago
Read 2 more answers
Remember, a bond’s coupon rate partially determines the interest-based return that a bondwill pay, and a bondholder’s required r
Vedmedyk [2.9K]

COMPLETE QUESTION:

Fill in the Blank:

Remember, a bond's coupon rate partially determines the interest-based return that a bond ______ pay, and a bondholder's required return reflects the return that a bondholder _______ to receive from a given investment.

Answer:

will, would like

Explanation:

The answers above correctly fills in the blanks in the question.

Remember, a bond's coupon rate partially determines the interest-based return that a bond WILL pay, and a bondholder's required return reflects the return that a bondholder WOULD LIKE to receive from a given investment.

6 0
3 years ago
Chandler Co. has a loan that accrues interest at a rate of $28 a day. The company pays the interest once a quarter. What adjustm
prohojiy [21]

Answer:

The Adjustment Entry for accrual of Interest Expense will be as follows:

                                              Dr.       Cr.

Interest Expense                $840

Interest accrued Payable               $840

Explanation:

Interest per day = $28

Interest expense for the Month = $28 x 30 = $840

$840 of Interest expense will be accrued at the end of the month and it should be adjusted accordingly.

3 0
3 years ago
Assume that consumers' incomes and the number of sellers in the market for good A (a normal good) both decrease. Based upon this
Vadim26 [7]

Answer:

Quantity will Increase

Explanation:

As we know that when market is in equilibrium so the demand curve should be intersected the supply curve. At the time when there is an increase in suppliers so supply curve shift rightward due to which the consumer income would increase and this result in more demand. So the demand could be shift in rightward

So here the price should be the same but the quantity is increased

4 0
3 years ago
Choose the best answer to complete the statement.
Grace [21]

Answer:

All networks are connected to the internet by a network.

Explanation:

A router, also a home network, allows you to connect several computers and other devices to a single Internet connection.

Hope this helps!

3 0
3 years ago
Read 2 more answers
Other questions:
  • Select the correct answer.
    7·1 answer
  • In a market economy, what is the central coordinating mechanism
    13·2 answers
  • Dr. Bhattacharya and Dr. Malinowski are considering purchasing a house together after spending 2 years as professors at UB. They
    9·1 answer
  • "Suppose that the demand and supply curves have similar steepness. If demand for the good increases slightly and at the same tim
    10·1 answer
  • Which of the following techniques can be used to narrow options for increased decision-making effectiveness? A. Applying differe
    9·1 answer
  • What is the best questions that entrepreneurs should know before starting a business?​
    14·1 answer
  • What is the meaning of market testing?
    13·2 answers
  • Madeline is a research assistant for her favorite biology professor, Dr. Ogechi. Dr. Ogechi is interested in studying the effect
    13·1 answer
  • Maria just found out a teacher is sick and is calling in a substitute to teach their classes. Which of Fayol's five functions do
    7·1 answer
  • ________ is/are typically used to energize, direct, or control employee behavior. Select one: a. Social structure b. Payouts c.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!