Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Cash Dr, $36,006
Cash short and over Dr, $4
($36,010 - $36,006)
To Sales $36,010
(Being cash sales, cash short and over is recorded)
Therefore, to record cash sales, cash short and over we debited cash and cash short and over while credited sales.
Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income <u>$46,200</u>
Beginning adjusted retained earnings for year 2017 <u>$926,200</u>
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
The answers are supply and demand.
Answer:
Lucia's cash flows from operating activities would be:
$132,000.
Explanation:
Accounts Receivable End: $30,000 Beginning: $29,000 = -$1,000
Accounts Payable End: $24,000 Beginning: $26,000 = -$2,000
Net Income : $ 135,000
To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.
Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.
