1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Contact [7]
2 years ago
8

C Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, C determined that insurance prem

iums of $30,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. C has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings
Business
1 answer:
Jet001 [13]2 years ago
3 0

Answer:

C Co.

Adjusted beginning retained earnings in 2021 Statement of Retained Earnings:

$215,000

Explanation:

Reported Retained Earnings balance at December 31, 2020 = $200,000

Prepaid insurance = $30,000 for three years

Insurance Expense for 2020 = $30,000

Insurance Expense for each of the three years = $10,000 ($30,000/3)

Insurance Expense over-expensed by $20,000 ($30,000 - $10,000)

Deferred Tax Liability = $5,000 ($20,000 * 25%)

Therefore, adjusted Retained Earnings = $215,000 ($200,000 + 20,000 - 5,000)

b) The Retained Earnings should have been $220,000 instead of $200,000 and there must be accounted for the deferred tax liability arising from the deduction of the Insurance expense that should have been accounted for in subsequent years.

You might be interested in
Which statement is not true about the minimum wage?
Kobotan [32]
Owners are not required to pay it to foreign works is incorrect option
5 0
3 years ago
You are trying to listen to instructions your boss is giving you about a new method for keeping expense accounts. But you find i
alexandr402 [8]

Answer:

Psychological barrier

Explanation:

The type of barrier that you are experiencing is psychological. Psychological barriers result when your personal values are not aligned with the message being received, be it by cultural or ethical values or even by preconceived thoughts. In this situation, since you do not agree with the task at hand of changing the method for keeping the accounts, you find it difficult to focus on the task.

5 0
2 years ago
Read 2 more answers
(problem 13). margo's marginal utility of one dance lesson is 100 utils per lesson. her marginal utility of a new pair of dance
kirill115 [55]

Since Margo purchase her optimal consumption bundle, the marginal utility per dollar consumed on dance lessons must be equivalent to the marginal utility per dollar paid on dance shoes. The marginal utility per dollar spent on dance lessons is 100 utils per lesson, where $50 per lesson is equivalent to 2 utils per dollar. The marginal utility per dollar expended on dance shoes therefore has to equal 2 utils per dollar. Since the marginal utility of a pair of dance shoes cost 300 utils per pair, the value of a pair of shoes should be $150 per pair, so that 300 utils per pair/$150 per pair is equal to: 2 utils per dollar.

6 0
3 years ago
Strategic PlanningImagine that IBM has decided to diversify into the telecommunications business to provide online cloud-computi
rosijanka [135]

Answer:

IBM could either diversify by the strategy of market penetration, which consists in increasing the market share in a particular sector (in this case, cloud computing) through more marketing efforts.

Or it could integrate horizontally, acquiring a possible competitor that is more advanced in the cloud-computing business. Or even a start-up with good prospects, because with the amount of capital that IBM has, it could more easily expand the start-up operation as a new internal business division.

4 0
3 years ago
Peppy is confident that Pepe's Pizzazzeria will be a success, but only if he has enough money to do things right. Since Pepe has
jekas [21]

Answer:

The correct answer is letter "B": develop a business plan.

Explanation:

Entrepreneurs who lack funds to start their ventures should develop a business plan so it can be presented to prospective investors who will decide if the venture is of their interest or not. The business plan should include the mission and vision of the business as well as a <em>SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis</em> explaining how the business will mitigate its risks and maximize its benefits.

The business plan should be innovative in Peppy's case since pizzerias are very common, thus, Pepe's Pizzazzeria must have a clear competitive advantage to face competitors.

8 0
3 years ago
Other questions:
  • Andrew believes that social stratification is based on people's accomplishments. According to him, people will be motivated to d
    7·1 answer
  • Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,600. The bank reconciliation for the period showe
    6·1 answer
  • Mediflow, a medium-sized medical technology company, has been successful in its research and development, but needs improvement
    5·1 answer
  • Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
    5·1 answer
  • Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, w
    7·1 answer
  • During which phase in the process must a firm allocate its factors of production?
    12·2 answers
  • Bonita Corporation has outstanding 9,100 shares of $100 par value, 6% preferred stock and 60,500 shares of $10 par value common
    15·1 answer
  • The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hir
    8·2 answers
  • 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses
    6·1 answer
  • many say that companies have a right to drug-test their employees because drug use impairs an employee's performance. how do des
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!