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3 years ago

why do journals have a post reference (pr) column to cross reference between journal and trial balance

Business

1 answer:

skad [1K]3 years ago

8 0

Answer:

To Keep Track

Explanation:

When posting journal amounts into the ledger, incase the accountant gets stopped in the middle of this process - they fill in the PR column with the account # so they know where they left off.

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Bronco Corporation discovered these errors in August of Year 3:

Lorico [155]

Answer:

e. $4,500

Explanation:

Year Depreciation overstated Prepaid expense omitted

1 $2,500 $3,000

2 $4,000 $2,000

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000

This means that year 2's net income was understated by $5,000.

But year 1's net income was overstated by = $2,500 - $3,000 = -$500.

The adjustment on the retained earnings account should be $5,000 - $500 = $4,500

4 0

4 years ago

Owens Industries is trying to increase its profile in the community. As part of this effort, Owens sponsors a Little League base

Serggg [28]

Answer:

Assets and stockholder's equity shall be decreased by $850.

Explanation:

Every accounting transaction has an effect on the standard accounting equation, or at least an effect on its components.

Standard Accounting Equation is:

Assets = Liabilities + Stockholder's Equity

As in the given instance the company sponsors, a baseball league, thus, this is an expense.

This will reduce the revenue and ultimately retained earnings which are part of stockholder's equity.

This will also reduce assets in the form of cash outflow made to incur this expense.

Thus, assets and stockholder's equity shall be decreased by $850.

6 0

4 years ago

Matthew bakes apple pies that he sells at the local farmer’s market. If the price of apples increases, the a. supply curve for M

Luda [366]

Answer:

The answer is: B) demand curve for Matthew’s pies will decrease.

Explanation:

When the cost of a production input increases, the supplier faces higher production costs. Apples are a key input used to produce apple pies, and an increase in the price of apples will increase Matthew's production costs.

If the production costs increase, producing the good or service becomes less profitable, reducing the supply of that good or service. Since Matthew will earn less money from baking apple pies, he is likely to decrease the quantity of apple pies he bakes.

A decrease in the supply will shift the supply curve to the left.

6 0

3 years ago

Revenues generated by a new fad product are forecast as follows:Year Revenues1 $54,000 2 30,000 3 20,000 4 10,000 Thereafter 0 E

mixas84 [53]

Answer:

a. What is the initial investment in the product?

$55,400

b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 30%, what are the project cash flows in each year?

NCF₁ = $25,050
NCF₂ = $15,250
NCF₃ = $11,750
NCF₄ = $8,250

c. If the opportunity cost of capital is 12%, what is the project's NPV?

-$7,270.28

d. What is project IRR?

4.27%

Explanation:

year cash flows costs working capital

0 -$50,000 -$5,400

1 $54,000 -$27,000 $3,000 (+$2,400)

2 $30,000 -$15,000 $2,000 ($1,000)

3 $20,000 -$10,000 $1,000 (+$1,000)

4 $10,000 -$5,000 $0 (+$1,000)

net cash flow year 1 = [($54,000 - $27,000 - $12,500) x 0.7] + $12,500 + $2,400 = $25,050

net cash flow year 2 = [($30,000 - $15,000 - $12,500) x 0.7] + $12,500 + $1,000 = $15,250

net cash flow year 3 = [($20,000 - $10,000 - $12,500) x 0.7] + $12,500 + $1,000 = $11,750

net cash flow year 4 = [($10,000 - $5,000 - $12,500) x 0.7] + $12,500 + $1,000 = $8,250

I calculated the NPV and IRR using a financial calculator

7 0

3 years ago

In the lease versus buy decision, leasing is often preferable

lina2011 [118]

Answer:

The correct answer is b) because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset.

Explanation:

A clear example of the previous statement is when, for work reasons, for pleasure, or because you want to change the environment; You want to change the house to a better or bigger one. However, it is not so easy, because the house where you currently live, you are the owner. And if you want to change of residence, you first have to rent or sell the house where you are living.

While if the house is leased, the last day of the month or depending on the contract, you can change of residence.

That's why leasing is considered better.

7 0

3 years ago