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suter [353]
2 years ago
8

Indicate by how much net income in the income statement is higher or lower if the adjustment is not recorded. (Do not round inte

rmediate calculations.)
Business
1 answer:
oee [108]2 years ago
4 0

Answer:

1. If the depreciation is not recorded, expenses will be overstated. Net income will therefore be higher by the depreciation amount of $5,400.

2. One June 30, $34,000 was loaned out. Interest is 7%. This interest needs to be apportioned to 6 months in the year as interest revenue:

= [(7% * 34,000) / 12] * 6 months

= $‭1,190‬

If this is not recorded, interest revenue will not be recorded which means that Net income will be lower by $1,190.

3. This was for one year yet it was received on October 1. 3 months of the amount will have to be accounted for in the current period.

= (9,600/12) * 3

= $2,400

There must be revenue recognized of $2,400. If it is not recognized, Net income will be lower by $2,400.

In total, Net income will be higher (lower) by:

= 5,400 - 1,190 - 2,400

= $1,810

Higher by $1,810.

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Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000, Long-term Liabilities of $220,000 and Own
Stels [109]

Answer:

$205,000

Explanation:

Total liabilities=current liabilities+long-term liabilities

total liabilities=$150,000+$220,000

total liabilities=$370,000

total owners'equity plus liabilities=$320,000+$370,000=$690,000

long-term assets+current assets=liabilities+owners'equity

long-term assets=$485,000

current assets are unknown

liabilities+owners'equity=$690,000

let CA represent current assets

$485,000+CA=$690,000

CA=$690,000-$485,000

CA=$205,000

3 0
2 years ago
The current price of the Volkswagen ADR (VWAGY) is 35.50. You purchase 50 shares on margin. You finance half of the purchase you
Zinaida [17]

Answer:

33.77%

Explanation:

In one year, you are going to receive ($42 x 100) + ($0.56 x 100) = $4,256

you must return ($35.50 x 50) = $1,775

plus interests = $1,775 x 6% = $106.50

total return = $4,256 - $1,775 - $106.50 = $2,374.50

you invested $1,775

return on your investment = ($2,374.50 / $1,775) - 1 = 33.77%

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2 years ago
What is an exclusive right of a person or company to reproduce, publish, or sell a creative work?
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The answer is copyright
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The Assembly Department of One Roof, Inc., manufacturer of computers, incurred $300,000 in direct material costs and $70,000 in
Papessa [141]

Answer:

D) $116.67 per EUP

Explanation:

To find out the equivalent unit of production (EUP) for conversion costs we have to divide the total conversion costs by the equivalent units produced:

EUP conversion costs = $70,000 / 600 units = $116.67 per EUP

The EUP for direct materials would = total costs direct materials / equivalent units produced = $300,000 / 1,000 units = $300 per EUP

Both fully completed units and partially completed units are expressed in terms of equivalent units of production.

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The advantages of partnerships include ease of start-up, shared decision making and a larger pool of capital. true or false
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