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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 The owner had withdrawn ​4,000 from the business in the form of goods acquired for​ resale, which had not been recorded.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

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Max Staxx borrowed $2,000 on a 10%, 120 day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an addit
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$670 is the final balance due that max wants to pay.                                                                                  

<u>Explanation</u>:

  • Max borrowed a $2000 amount on a 120-day note. First, he paid $700 in the 120-day note. So the current amount he paid is $700.
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3 years ago
One factor that influences the consumer decision-making process is __________, which refers to the set of values, attitudes, and
Ray Of Light [21]

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culture

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culture is that stiff part of one life that cannot be change with time and more or less on the basis this consumer change its decision.

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3 years ago
Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,0
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Answer:

Allocated Overhead= $76,000

Explanation:

Giving the following information:

Estimated overhead for the period= $80,000

Estimated direct labor hours= 4,000 for the same period

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<u>First, we need to calculate the estimated overhead rate. Then, we can determine the amount of overhead allocated to work in process for the period.</u>

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 80,000/4,000= $20 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20*3,800= $76,000

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