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Vesna [10]
2 years ago
15

A company paid $200 cash for supplies that were purchased last month. However, the company recorded a debit to Accounts Payable

of $200 and a credit to Cash of $20. This company's accounting records are ______.
Business
1 answer:
hjlf2 years ago
3 0

This company's accounting records are: Incorrect because debits side  do no equal credits side.

<h3>Accounting record</h3>

Based on the information given their is an error when recording the journal entry reason  been that we are supposed to credit cash with the amount of $200 and not $20.

Due to this error this company's accounting records will be wrong or  Incorrect based on the fact that the  debits side  do no equal credits side.

The principle of accounting entry states that "Every debit entry must have a corresponding credit entry and every credit entry must have a corresponding debit entry"

The correct entry was supposed to be:

Debit Account payable $200

Credit Cash $200

Inconclusion  this company's accounting records are: Incorrect because debits side  do no equal credits side.

Learn more about accounting record here:brainly.com/question/26282268

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A firm has three different production facilities, all of which produce the same product.. While reviewing the firm's cost data,
Valentin [98]

<u>Joshua is right because fixed costs are unavoidable but marginal costs are not.</u>

<u>Explanation</u>:

Decision making plays an important role while considering the development of the organization. The officials in the company should act smartly in making decisions during crucial situation.

<u>Marginal cost </u>is the cost added to the total cost while producing additional units. <u>Fixed cost </u>is the cost of the product that does not change with the increase or decrease in the quantity of the products.

In the above scenario, Jasmine and Joshua were discussing about the cost of the products that are produced in their manufacturing plants. They were discussing about the marginal cost and fixed cost.

6 0
2 years ago
A customer has requested that Byrd Corporation fill a special order for 9,000 units of product S51 for $20.50 a unit. Product S5
e-lub [12.9K]

Answer:

Effect on income= $4,500 increase

Explanation:

Giving the following information:

Special offer: 9,000 units of product S51 for $20.50 a unit.

Direct materials $ 3.10

Direct labor 1.50

Variable overhead 6.40

The customer would like modifications made to product S51 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value.

<u>Because it is a special offer, we will not have into account the fixed costs.</u>

Unitary variable cost= 3.1 + 1.5 + 6.4 + 5= $16

Investment= 36,000

Effect on income= 9,000* (20.5 - 16) - 36,000

Effect on income= 40,500 - 36,000

Effect on income= $4,500 increase

8 0
2 years ago
Campbell Construction Company expects to build three new homes during a specific accounting period. The estimated direct materia
Alina [70]

Answer:

The driver for employees fringe benefits is direct labor costs whereas the driver for indirect material costs is direct material costs

The total cost of each home is as follows:

Home 1 $188140

Home 2 $268860

Home 3 $408910

Explanation

Find the breakdown of the costs in the attached excel file.

Download xlsx
6 0
3 years ago
25 points --
Ilia_Sergeevich [38]

Answer:

1 and 3 or A and C

Explanation:

I did it on edgnuity mark me brainliest

8 0
2 years ago
Harris Co. is considering a 12-year project that is estimated to cost $900,000 and has no residual value. Harris seeks to earn a
masha68 [24]

Answer:

annual income = $70,292.52

Explanation:

initial outlay $900,000

in order to determine the net cash flows per year we can use the present value of an ordinary annuity:

PV = annual cash flow x annuity factor

  • PV = $900,000
  • annuity factor, 15%, 12 years = 6.1944

annual cash flow = $900,000 / 6.1944 = $145,292.52

annual cash flow = [(revenue - operating costs - depreciation) x (1 - tax rate)] + depreciation

  • revenue - operating costs - depreciation = annual income
  • tax rate = 0?
  • depreciation = $900,000 / 12 = $75,000

$145,292.52 = annual income + $75,000

annual income = $145,292.52 - $75,000 = $70,292.52

3 0
3 years ago
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