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
Illusion [34]
2 years ago
14

After the accountant of Stallone Retailers had prepared the financial statements for the year ended 31 December Year​ 6, the fol

lowing errors came to​ light:
1. A motor van purchased for ​8,000 during the year had been charged to motor running expenses. The motor van should be charged with depreciation at the rate of​ 20% of cost.
2. Closing​ inventories, which had been used in calculating gross​ profit, had been overvalued by​ £3,000.
3. The owner had withdrawn ​4,000 from the business in the form of goods acquired for​ resale, which had not been recorded.
4. An​ interest-free loan of ​2,200 from a relative of the owner was repaid during the year but this was not recorded.
The profit for the year before these errors were discovered was ​112,000.
What is the profit for the year after adjusting for these​ errors?
Business
1 answer:
n200080 [17]2 years ago
4 0

The adjusted profit of Stallone Retailers for the year ended December 31, Year 6 is £115,400.

Data Analysis:

1. Motor Van £8,000 Motor running expense £8,000

Depreciation expense  £1,600 Accumulated depreciation £1,600 ( £8,000 x 20%)

2. Cost of goods sold £3,000 Inventory £3,000

3. Drawings  £4,000 Inventory  £4,000

4. Loan  £2,200 Cash  £2,200

<u>Adjustment of Profit</u>

Profit before the errors  £112,000

Adjustments:

Motor running expense   £8,000

Depreciation expense    (£1,600)

Cost of goods sold         (£3,000)

Adjusted profit            £115,400

Thus, the adjusted profit is now £115,400.

Learn more: brainly.com/question/3816206

You might be interested in
Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that inst
weeeeeb [17]

Answer: d. ​The car is a normal goods for Jim

Explanation: if an individual's income goes up by a certain percentage or amount and, in response, the quantity demanded of good rises by rises in response to the income increase, such good can be considered a normal good. It is also defined as such good for which the income elasticity of demand is positive but less than one. This is the same scenario that has happened with Jim. His demand for better automobile increased as a result of an increase in his income.

4 0
3 years ago
Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i
Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is  </em> $692

b)   PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing  would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

                                  = (10,945 + 29651 + 21094)/19,900

                                     =$3.1

Variable cost per unit of sale = $3.1 + $0.35 =  $3.45

a) Incremental Analysis

<em>Change in Net Income:                               $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) ×   5,350 =                           7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004)                                     <u>(  6370)</u>

<em>Net income                                               </em><em><u>   692</u></em>

<em><u>b) </u></em>   PINA should accept the order because it will increase its net income by $692

<em />

6 0
3 years ago
Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be a
satela [25.4K]

Answer:

v

Explanation:

3 0
3 years ago
Taj study process technology in college. He understands how to keep chemicals at the correct temperature for them to be used in
USPshnik [31]

A steel manufacturer looking for a technician to oversee their melting process

Option A

<u>Explanation: </u>

The basic method used for manufacturing silicon chips that are calculated by the transistor's size. Miniaturisation and process automation are at the core of integrated circuits architecture, and this constant target is smaller.

This means greater computational power per cubic inch, and smallness allows for the design of ultra-small chips almost everywhere in the world.

Steel technology has evolved nearer to steel oxygen manufacturing, as there is more chemical power added into the process. The quality of products made from liquid steel is also significant.

8 0
3 years ago
How far is the sun to the earth​
Gwar [14]

Answer:

The Sun is 91.452 million miles away from Earth.

Explanation:

Hope it helped!

3 0
3 years ago
Read 2 more answers
Other questions:
  • No matter how well the football team plays, they will win few games because they are in a league that consists mainly of stronge
    14·1 answer
  • When working on a suspended scaffold 10 feet or higher above the working surface, or in a bucket truck or aerial lift, what safe
    13·1 answer
  • How many of the following items are found on the balance sheet, rather than the income statement?
    11·1 answer
  • You purchased a share of stock for $50. Two years later you received $2 as dividend and sold the share for $59. What was your ho
    8·1 answer
  • What is the purpose of Lincoln Douglas?<br><br> Tysm have a great day! :)
    14·1 answer
  • 2<br>Find the odd one out Turnip, Arbi , Potato ​
    7·1 answer
  • Josie is the CRM manager for a toy company. Under what pathway in the Marketing, Sales, and Services career cluster would Josie'
    10·2 answers
  • The assumptions behind the economic order quantity (EOQ) model include all of the following EXCEPT __________. Multiple Choice a
    6·1 answer
  • Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six w
    11·1 answer
  • if keynesian economists were analyzing the oncoming recession starting in 2007 from the housing market crash, what might they ha
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!