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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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Tulip Midwifery's cost formula for its wages and salaries is $2,420 per month plus $388 per birth. For the month of January, the
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Answer:

$ 50144

Explanation:

Given:

Cost formula for the the wages and salaries = $ 2420 / month + $ 388 / birth

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Actual level of activity = 123 births

the wages and salaries in the flexible budget for January, using the given formula will be calculated as:

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3 years ago
Erie company manufactures a mobile fitness device called the jogging mate. the company uses standards to control its costs. the
scoray [572]

Answer:

Standard Hours     Standard Rate per Hour      Standard Cost

24 minutes (0.4 hrs.)            $5.40                                  $2.16

During August, 8,390 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $43,628 for the month.

1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates?

  • 19,600 jogging mates x 0.4 hours = 7,840 hours

2. What is the standard labor cost allowed (SH × SR) to make 19,600 Jogging Mates?

  • 7,840 hours x $5.40 = $42,336

3. What is the labor spending variance?

  • labor spending variance = standard cost - actual cost = $42,336 - $43,628 = $1,292 unfavorable

4. What is the labor rate variance and the labor efficiency variance?

  • labor rate variance = (standard rate - actual rate) x actual hours = ([$5.40 - ($43,628/8,390 hours)] x 8,390 hours = ($5.40 - $5.20) x 8,390 hours = $0.20 x 8,390 = $1,678 favorable
  • labor efficiency variance = (standard hours - actual hours) x actual rate = (7,840 hours - 8,390 hours) x $5.20 = -550 hours x $5.20 = -$2,860 unfavorable
7 0
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there is a tradeoff between safety and fuel economy

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Tradeoff is also known as opportunity cost. It is the cost of the next best option forgone when one alternative is chosen over other alternatives

By choosing fuel economy, auto manufacturers are reducing safety of cars. This is an example of a tradeoff

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Answer:

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