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
Absorption costing income would be ____ variable costing income. a. $150,000 less than b. $150,000 greater than c. $240,000 less
Dafna11 [192]

Answer:

E. None of the above

7 0
3 years ago
Consider the circular flow model to answer the questions that follow.
Zarrin [17]

Answer:

The answer is :

A. Resource market - income

B. Expenditure - product market.

Explanation:

A. Resource market - income

B. Expenditure - product market

The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.

A.

In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).

B.

Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)

6 0
3 years ago
Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the comp
faltersainse [42]

Answer:

Correct option is (d)

Explanation:

Corporate social responsibility is an initiative taken by companies to act for the benefit of the society. Since companies utilize resources from the society, it their responsibility to give back to the society in the form of charity to non governmental organizations, welfare of underprivileged and protecting the environment.

Here, though Enron was undertaking unethical means for personal benefits, it was also carrying out corporate social responsibility by donating to Houston area charities.

4 0
3 years ago
Which statement correctly describes the current state of instant messaging in the workplace? Multiple Choice It is an establishe
vfiekz [6]

Answer:

It is a relatively new, undeveloped form of communication in the workplace, and attitudes toward it vary.

Explanation:

4 0
3 years ago
Direct marketing ___________.a. is synonymous to word-of-mouth marketing. b. seeks the same objectives as personal selling strat
Alenkinab [10]

Answer: the correct option is E.

Explanation: Direct marketing can be referred to as an advertising strategy that implements an individual distribution of a sales pitch directly the to potential customers. The delivery systems used here, include, mail, e-mail, texting, and calls.

This method of marketing is called direct marketing because it is usually carried out without the use of middleman such as advertising media. This is because it will make no economical sense to utilize the media to market to just one particular customer.

Therefore, the direct method of marketing is not used in combination with other forms of promotional media.

8 0
3 years ago
Other questions:
  • Glenda needs to practice writing e-mails to her digital team, but she cannot remember the guidelines for effective communication
    6·2 answers
  • The quantity sold in a market will decrease if the government decreases aA. binding price floor in that market.B. binding price
    13·1 answer
  • Identify how to calculate nominal interest rates and real interest rates. Assume that you put $100 in the bank. Use numeric exam
    8·1 answer
  • Section 1239 recharacterizes gain on the sale of depreciable property to related person as ordinary income.
    6·1 answer
  • When a company pays its bill from a plumber for previous services on account:(A) Its debt to equity ratio always decreases. Corr
    11·1 answer
  • A production department's output for the most recent month consisted of 18,000 units completed and transferred to the next stage
    15·1 answer
  • Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were s
    15·1 answer
  • A nurse manager is preparing to talk to her staff about quality improvement at a staff meeting. Which statement below is a corre
    5·2 answers
  • __________ is the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will p
    7·1 answer
  • A style guide, such as an MLA manual, will assist you in:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!