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larisa86 [58]
3 years ago
7

At the end of the first month of operations, the Lamar Company's accountant prepared financial statements that showed the follow

ing amounts: Assets $90,000 Liabilities 30,000 Stockholders' Equity 60,000 Net Income 11,000 In preparing the statements, the accountant overlooked the following items: a. Depreciation for the month. $4,500 b. Service revenue earned but unbilled at month-end. $1,850 c. Employee wages earned but unpaid at month-end. 450 Determine the correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month. Assets Liabilities Stockholders' Equity Net Income Answer 87,350 Answer 30,450 Answer 86,900 Answer 7,900
Business
1 answer:
Sedaia [141]3 years ago
8 0

Answer:

Assets = $87,350

Liabilities = $30,450

Stockholders' Equity = $56,900

Net Income = $7,900

Explanation:

The correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month can be determined as follows:

Assets = Recorded asset value - Depreciation + Unbilled service revenue = $90,000 - $4,500 + $1,850 = $87,350

Liabilities = Recorded liabilities + Unpaid wages = 30,000 + 450 = $30,450

Stockholders' Equity = Recorded Stockholders' Equity - Depreciation + Unbilled service revenue - Unpaid wages = $60,000 - $4,500 + $1,850 - $450 = $56,900

Net Income = Recorded net income  - Depreciation + Unbilled service revenue - Unpaid wages = 11,000 - $4,500 + $1,850 - $450 = $7,900

Note that from the above calculations, we can obtain:

Liabilities + Stockholders' Equity = $30,450 + $56,900 = $87,350

This therefore confirms the accounting equation that:

Assets = Liabilities + Stockholders' Equity = $87,350

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elixir [45]

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From the complete question, none of the above options are given, therefore, the correct option is None of the above.

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7 0
2 years ago
A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the r
nydimaria [60]

Answer:

a. Would it be economically efficient for the dentist to buy and put up a shield? Why or why not? By how much would total surplus change?

No, it is not economically efficient for the dentist to buy the shield.

b. Would it be economically efficient for the radio station to buy and put up a shield? Why or why not? By how much would total surplus change?

No, it is not economically efficient for the radio to buy the shield.

c. Would it be economically efficient for the dentist to buy a new drill? Why or why not? By how much would total surplus change?

No, it is not economically efficient for the dentist to buy the drill.

d. Would it be efficient for the radio station to buy the dentist a new drill? Why or why not? By how much would total surplus change?

Yes, it is economically efficient for the radio to buy the dentist a new drill. The Coase Theorem is an economic theory that states that economic conflicts must be solved regardless of who had the initial rights of whatever is on dispute. In this case, the dentist is causing harm to the radio, but he is doing OK. So the radio has a problem, not the dentist. The radio needs to solve its problem, so they should buy the dentist a new drill.

The economic surplus = $10,000 - $6,000 = $4,000, that means that the radio will be $4,000 better.

6 0
3 years ago
Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense
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4 0
3 years ago
Splish Corporation reported the following for 2020: net sales $1,242,800, cost of goods sold $737,700, selling and administrativ
tester [92]

Answer:

1. $192,200

2. $192,200

Explanation:

1. Preparation for the statement of comprehensive income using the one statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the one statement format will be $192,200

2. Preparation a statement of comprehensive income using the two statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Comprehensive Income

Net Income $175,600

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the two statement format will be $192,200

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RSB [31]
Actually for this type of question simply take a picture
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