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Sonbull [250]
4 years ago
14

In 2021, the internal auditors of Development Technologies, Inc., discovered that a $4 million purchase of merchandise in 2021 w

as recorded in 2020 instead. The physical inventory count at the end of 2020 was correct. Assume the company uses a periodic inventory system. Required: Prepare the journal entry needed in 2021 to correct the error. (Ignore income taxes.) (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
stich3 [128]4 years ago
6 0

Answer:

No entry required

However, the balance sheet must be adjusted to  represent both, the 4,000,000 inventory and the 4,000,000 accounts payable

Explanation:

As the account involved:

Inventory and accounts payable are permanent account do not alter the net income for the year ended December 31th 2020.

Also as no cash is involve the cash statement is not affected too.

This delay on recording generate no problem for the accounting.

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What "Super Union" had taken on railroad companies and factories to improve the conditions for workers?
dybincka [34]

Explanation:

4th one is the answer

American Railway Union (ARU)

6 0
3 years ago
Paid Rs.700 as rent of the house occupied by the proprietor for personal use​
Pani-rosa [81]

Answer:

see below

Explanation:

In this transaction, Rs. 700 is used to pay for rent that the proprietor uses for personal use. The transaction will be captured in the drawings account. A drawing account is used to track all the money owners take from a business for personal use. The amount taken to pay rent, Rs. 700 will be debited  Drawings A/c.

The transaction will decrease cash ( asset account) by Rs. 700. A decrease in assets is credited. Therefore, the cash account will be credited by Rs.700

The journal entry will be

Drawings A/c Dr.   Rs.700

Cash A/c.                          Cr  Rs.700

4 0
3 years ago
Having thought about Mr. James's suggestion, you consider several options as an estimate of lost profits. These include 1) the f
podryga [215]

Answer:

The most accurate estimate of lost profits is

3) a weighted average that gives twice the weight to the last six months as to the first six months

Explanation:

In this case, after Mr James' suggestions, I consider several options as an estimate of lost profits, which are:

1) The full year: In this case the the entire data for the year would be considered for estimation.

2) The last six months: Here, half of the year's data would be considered for estimation.

3) Weighted average that gives twice the weight to the last six months as to the first six months: This means that the data for the most recent months should be given more weight more than the first six months. It means that the most recent data would be more accurate than that of the first 6months, and the most recent data should be trusted more than the data of the previous 6 months.

Here, a ratio of 2:1 is used to assign weight to the last six months and first six months respectively.

4) Some other weighted average: This is similar to option 3 not same ratio is used, but some other weights could be assigned depending on other factors.

Therefore, the weighted average gives the most accurate estimate of lost profits as in option (3) because it considers the most recent data.

5 0
3 years ago
Bellue Inc. manufactures a single product. Variable costing net operating income was $115,600 last year and its inventory decrea
Delicious77 [7]

Answer:

absorption costing net operating income = $106400

Explanation:

Manufacturing overhead in inventory =  Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory

Since the fixed overhead cost was $4 for both unit in beginning and in ending inventory

 $4 per unit × (−2,300) = −$9200

Variable costing net operating income =  $115600

subtract fixed manufacturing overhead costs released from inventory

(9200 )  from Variable costing net operating income

Absorption costing net operating income =  Variable costing net operating income -  fixed manufacturing overhead costs released from inventory

Absorption costing net operating income  = 115600 - 9200 =  $106400

5 0
3 years ago
Identify each of the following statements about linear programming problems as true or false, and then justify your answer.
nika2105 [10]

Answer and Explanation:

a. The given statement is true as the corner point at the objective function should be feasible solution which is no longer as compared with the value for every adjacent CPF solution as compared with its optimal

b. The given statement is false as the solution can be an edge

c. The given statement is true as it shows the direct relation between the two things

3 0
4 years ago
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