<span>C) Open Market Operations</span>
yeah with what do you need help with
Answer:
Dr Accounts Payable-Emma Co. $10,040
Cr Merchandise Inventory $184
Cr Cash $9,856
Explanation:
The Journal entry that Isabella Co. will make to record the payment for the merchandise if Isabella Co. pays within the discount period.
Dr Accounts payable-emma Co. $10,040
($9,200+$840)
Cr Merchandise inventory $184
(2%*$9,200)
Cr Cash $9,856
($10,040-$184)
Answer:
c. An addition to (or a deduction from) the beginning balance of retained earnings
Explanation:
A prior period adjustment is the correction of an accounting error that occurred in the past and was reported on a prior year's financial statement, net of income taxes. Prior period adjustment are reported in the statement of retained earnings as an increase or a decrease in the beginning retained earnings. Therefore, the adjusted beginning retained earnings balance is the amount that retained earnings would have been if the error had not been made.