Answer:
A. Accounts Payable 1,280 Cash 1,280
Explanation:
Jawbreaker Company paid $640 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $640 and a credit to Accounts Payable of $640.
The correcting entry is a debit to Accounts Payable of 1,280 and a credit to Cash of 1,280
The correct entry for payment of a creditor on account is to
Dr Account Payable........640
Cr Cash......................................640
However the opposite to the above entry was passed which will give rise to an error double the impact of the transaction value because:
1.The correct transaction to the value of $640 is missing
2. The opposite of the transaction to the value of $640 is existing.
Hence the impact of the error is double the amount which explains the reason why the correction involved twice the value of $640 which is $1,280
Answer:
$200
Explanation:
As for the information provided,
Quality control rate = 
Machine operation = 
Material Handling = 
Miscellaneous Overhead = $
The order of 1,000 laser printers
Require:
Quality control cost = $60 
265 = $15,900
Machine operation = $100 225 = $22,500
Material Handling = $40 5 = $200
Miscellaneous Overheads = $10 740 = $7,400
Therefore, correct option is:
$200
Answer:
O Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.
Explanation:
Dividend declared = $0.5 per share
Total Authorized shares = 20,000 shares
Total Issued Shares = 9,000 shares
Total Outstanding shares = 8,000 shares
As outstanding shares are only eligible shares for the dividend payment.
Total Dividend Payment = $0.5 per share x 8000 shares
Total Dividend Payment = $4000
Journal Entry for this event
Dr. Cr.
Retained Earning $4,000
Common Dividend Payable $4,000
Answer: An agreement between two teams who are not working together
Explanation: A teaming agreement refers to the agreement made by two or more individual corporations to work together.
Usually these agreement are made by the leading entities of an industry to bid on Government contract, so that there will be less competition and everyone gets the fair share in profit.
Such agreements are considered totally legal so the companies do not need to keep it in any secrecy.
Hence from the above we can conclude that statement 4 is correct.
Answer:
The correct answer is B. Maintenance of control over unused checks.
Explanation:
Risk of material misstatement is the risk that the financial statements contain material misstatements prior to the performance of the audit. The risk comprises two components, described as follows, in the statements:
Inherent risk - Susceptibility of a statement about a type of transaction, accounting balance or other disclosure of information to a misstatement that could be material, either individually or in aggregate with other inaccuracies, before taking into account the possible corresponding controls.
Control risk - Risk that an error that could exist in a statement about a type of transaction, accounting balance or other information relief, and that could be material either individually or in aggregate with other inaccuracies, is not prevented, or detected and corrected in a timely manner, by the entity's internal control system.
