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frutty [35]
3 years ago
6

On December 31, 2016, Krug Company reported pretax income of $300,000 prior to the following adjusting entries: Depreciation exp

ense: $38,000; Accrued sales revenue: $36,000; Accrued expenses: $17,000; Used insurance: $4,000; the insurance was initially recorded as prepaid. Rent revenue earned: $2,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. How much is Krug's pretax income after the adjusting entries
Business
1 answer:
qaws [65]3 years ago
3 0

Answer: $279,000

Explanation:

Accrued revenue and expenses should be accounted for because they have been realized and incurred in the current period.

Used insurance and depreciation should be accounted for as the expenses they are and rent revenue earned should be treated as revenue.

Pretax income after adjustments:

= Pretax income + Accrued sales revenue + rent revenue - Depreciation - Accrued expenses - Insurance

= 300,000 + 36,000 + 2,000 - 38,000 - 17,000 - 4,000

= $279,000

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8 0
3 years ago
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The following information is available for Barone Corporation: January 1, 2019 Shares outstanding 4,000,000 April 1. 2019 Shares
stepladder [879]

Answer and Explanation:

a. The computation of the weighted average number of shares is shown in the attachment below:

b.  Now the earning per share i.e EPS

= (Net Income - Preferred Dividend) ÷ (Weighted average number of shares )

= ($9,850,000 - $10,000) ÷ (8,720,000 shares)  

= $1.13    

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5 0
3 years ago
When a cube of manganese oxide was added to a solution of hydrogen peroxide, water and oxygen were produced. Manganese oxide was
levacccp [35]

Answer:

The Manganese oxide would rather speed up the rate of reaction.

Explanation:

In this reaction, manganese oxide is the catalyst and catalyses the decomposition of hydrogen peroxide. Chemically this reaction can be written as:

2H_2O_2 -> O_2 + 2H_2O

MnO2 does not show itself in the equation because it is a catalyst.

A catalyst is a substance that speeds up a chemical reaction, but is not consumed by the reaction; hence a catalyst can be recovered chemically unchanged at the end of the reaction it has been used to speed up, or catalyze.

5 0
4 years ago
The first step in the CRM process is analyzing data. creating a data warehouse. rewarding loyal customers. developing CRM progra
uranmaximum [27]

Answer:

Creating a data warehouse

Explanation:

Customer relationship management or CRM aims at creating and maintaining good customer relationships, providing better customer satisfaction so as to increase sales.

CRM focuses upon providing good customer support and customer feedback.

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5 0
3 years ago
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
4 years ago
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