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nadya68 [22]
3 years ago
7

Effect of Inventory Errors During the taking of its physical inventory on December 31, 20Y3, Sellers Company incorrectly counted

its inventory as $303,295 instead of the correct amount of $327,560 Indicate the effect of the misstatement on Sellers's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value
Cost of goods sold
Current assets
Gross profit
Inventory
Net income
Stockholders' equity
Total assets
Business
1 answer:
Illusion [34]3 years ago
3 0

Answer:

Cost of goods sold  = overstated : $24,265

Current assets  = understated : $24,265

Gross profit  = understated : $24,265

Inventory  = understated : $24,265

Net income  = understated : $24,265

Stockholders' equity  = understated : $24,265

Total assets = understated : $24,265

Explanation:

Inventory was understated by $24,265 ($327,560 - $303,295). Since inventory is an Asset, also it is a Income Statement element and consequently affects Retained Earnings (Distributions to Shareholders) , the effect is shown above.

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Komok [63]

Answer:

Dr Amortization Expense $3,000

Cr Patents $3,000

Explanation:

Preparation of the journal adjusting entry on December 31 to recognize the amortization.

Dec. 31

Dr Amortization Expense $3,000

Cr Patents $3,000

(To record Amortization)

Amortization=(Patent rights/Useful life)*6/12

Amortization=($36,000/6)*6/12

Amortization=$3,000

(July 1 to Dec 31 =6months)

8 0
3 years ago
Paytonics Inc., a microchip manufacturing company, is hiring for the position of marketing manager for its new division. Patrick
Leya [2.2K]

Answer:

The correct answer is letter "D": job specification.

Explanation:

Job specification files include all the positions within a firm, the duties of the individuals in charge, and the profile of the professional who will cover those activities. Certifications, qualifications, and skills are described in detail in those documents that serve as a guide for Human Resources (HR) representatives at the moment of carrying out a selection process.

4 0
3 years ago
Expansionary monetary policy Group of answer choices 1. lowers interest rates, causing aggregate demand to shift to the right. 2
masha68 [24]

Answer:

2. raises interest rates, causing aggregate demand to shift to the right.

Explanation:

Expansionary Fiscal Policies try to increase Aggregate demand by :-

  • Decrease in taxes by government ; or / and
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The government injecting more money in public : by reduced taxes & increased govt spending - increases the aggregate demand .

The government finances this increased public spending with same or  decreased taxes - through borrowings.

The government borrowing funds reduces the loanable funds in capital market, this loans' excess demand in capital markets increase their price i.e Interest.

4 0
3 years ago
. El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.4. Bas
almond37 [142]

Answer:

The firm's unleveraged beta is 1.0251

Explanation:

Hamada's equation  is used to separate the financial risk of a levered firm from its business risk.

The Hamada equation:

Bu= Bl/(1 + (1 − T)(D/E))

Bl = 1.4

wd = 0.36

Tax rate = 35%

D/E = wd / (1 – wd) = 0.5625 = 56.25%

= 1.4/ (1+(1-0.35)(0.5625))

=1.4/ 1 + (0.65)(0.5625)

=1.4/1.36

= 1.0251

5 0
3 years ago
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar
Kruka [31]

Answer:

$400

Explanation:

Calculation to determine the minimum acceptable price of this special order

Using this formula

Minimum acceptable price=Direct materials+ Direct labor+ Manufacturing support +Marketing costs

Let plug in the formula

Minimum acceptable price=$140 + $100 + $105 + $55

Minimum acceptable price=$400

Therefore the minimum acceptable price of this special order is $400

7 0
3 years ago
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