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gulaghasi [49]
3 years ago
15

Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 4,000 Salaries expense 1,500

Accounts payable 2,000 Retained earnings 4,400 Utilities expense 1,000 Supplies 12,400 Service revenue 7,900 Common stock 4,600
Required: Use only the appropriate accounts to prepare an income statement.
Business
1 answer:
matrenka [14]3 years ago
4 0

Explanation:

The preparation of the end December Income statement for Cowboy Law Firm is presented below:

                                          Cowboy Law Firm

                                           Income statement  

Revenue  

Service Revenue $7,900

Total revenues $7,900 (A)

Less: Expenses

Salaries expense $1,500

Utilities expense $1,000

Total expenses $2,500 (B)

Net income $5,400 (A- B)

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Answer:

The correct answer is $50 (unfavorable).

Explanation:

According to the scenario, computation of the given data are as follow:-

Planning supply activity cost = (592 × $10) +$1230

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Actual supply activity cost = (597 × $10) + $1230

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We can calculate the activity variance for supply cost by using following formula:-

Activity variance for supplies cost = Actual activity cost – Planning activity cost  

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3 years ago
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the agency problem                  

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The issue with the organisation is a conflict of interest present in either partnership where each party is required to look after the interests of someone else. In management consulting, the issue with the corporation generally refers to a conflicts of interest among management of a business and shareholders of the organization.

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