Answer:
This would affect the income statement by having expenses
c. understated and therefore net income overstated revenues
Explanation:
Adjusting Entry:
It is such entry which is added at the end of the fiscal period in order to make the income statement accurate.
Overstated:
In Accounting, overstated amount means that amount is greater than the true amount.
Understated:
In Accounting, if an amount is less than the true amount then it is known as understated.
- As in our case, the adjusting entry for supplies was not added so in this way expenses became understated means they become less as compared to actual expenses. Therefore, revenues overstated.
Answer:
$26.67 million
Explanation:
The computation of price per share is shown below:-
Total market value = $1,150 million + $120 million
= $1,270 million
Market value of equity = Total market value - value of debt - value of preferred stock
= $1,270 million - ($120 million + $300 million + $50 million)
= $1,270 million - $470 million
= $800 million
Price per share = Market value of equity ÷ Stock outstanding
= $800 million ÷ $30 million
= $26.67 million
Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.
d. The Company's liabilities will increase by $30,000.
Explanation:
From the question, Foster, Inc., bought a truck by paying $5,000 and then borrowed the remaining $30,000 that was required to complete the transaction.
Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000
We have to make a system of equations:
x + y = 7; where x stays for pounds of Kenyan coffee, and y stays for pounds of Sri Lankan coffee. And: 3.50 * x + 5.60 * y = 33.95 ( total cost ).
From the 1st equation: x = 7 - y. We have to substitute it into the 2nd equation:
3.50 * ( 7 - y ) + 5.60 * y = 33.95
24.50 - 3.50 y + 5.60 y = 33.95
5.60 y - 3.50 y = 33.95 - 24.50
2.10 y = 9.45
y = 9.45 : 2.10
y = 4.5 lb; x = 7 - 4.5 = 2.5 lb.
Answer: 2.5 lb of Kenyan coffee and 4.5 lb of Sri Lankan.
