During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $222,138.00 instead of the correct amount of $184,409.00. The effect on the balance sheet and income statement would be:______.
a. assets overstated by $52,094.00; retained earnings understated by $52,094.00; and net income statement understated by $52,094.00.
b. assets overstated by $223,182.00; retained earnings understated by $171,088.00; and no effect on the income statement.
c. assets, retained earnings, and net income all overstated by $52,094.00.
d. assets and retained earnings overstated by $171,088.00; and net income understated by $223,182.00.

Answers

Answer 1

Answer:

c. assets, retained earnings, and net income all overstated by $37,729.

Explanation:

since the ending inventory was overstated by $222,138 - $184,409 = $37,729, it means that cost of goods sold was understated by that same amount. Since COGS were less, that resulted in higher operating income and net income.

Merchandise inventory will be overstated by $37,729 (current asset), while retained earnings will also be overstated by $37,729 since net income increases retained earnings.


Related Questions

Record the journal entry

Received October's rental bill of $1,300; set it aside.

Answers

Answer:

Note: The full question is attached below

S/No  Accounts titles and Explanation     Debit ($)   Credit ($)

A.       Accounts receivable                            5,200

                    Service revenue                                           5,200

          (To record the service revenue)  

B.         Cash                                                     3,100  

                    Service revenue                                             3,100

          (To record the service revenue)  

C.         Cash                                                      1,500

                    Unearned service revenue                           1,500

           (To record the advance received for the services to be provided)

D.         Cash                                                     4,600  

                    Accounts receivable                                       4,600

            (To record the collection of amount)  

E.          Rent payable                                        1,100

                     Cash                                                                 1,100

            (To record the payment of bill)  

F.           Rent expense                                        1,200

                    Rent payable                                                    1,200

             (To record the accrual of rent expense)

________ seem as a group to be mildly regressive, and ________ seem as a group to be mildly progressive.
A) Federal taxes; state and local taxes.B) Federal and state taxes; local taxes.C) Local taxes; federal and state taxes.D) State and local taxes; federal taxes.

Answers

Answer: D) State and local taxes; federal taxes.

Explanation:

States and local taxes are seen to be mildly regressive because low income earners typically pay a higher proportion of their income when compared to the high earners.

For the federal taxes, they are seen to be mostly progressive because the higher earners pay a larger part of their income when compared to the lower earners.

Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talent agency.What is the total deductible amount of these expenditures?
$1,000 dinner with a film producer where no business was discussed
$500 lunch with sister Nicky where no business was discussed
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
A) $450.
B) $900.
C) $1,100.
D) $1,200.
E) $0

Answers

Answer:

A) $450.

Explanation:

The computation of the total deductible amount of the expenses is as follows:

In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting

As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction

Therefore the correct option is A.

ways to improve productivity in the workplace

Answers

You need motivation..

Vault cash is equal to $1 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. The total currency in circulation is:__________.

Answers

Answer:

The total currency in circulation is $13 million.

Explanation:

This can be calculated using the following formula:

Total currency in circulation = Monetary base - Vault cash - Deposits by Depository institutions at the central bank ................ (1)

Where;

Total currency in circulation = ?

Monetary base = $15 million

Vault cash = $1 million

Deposits by depository institutions at the central bank = $1 million

Substituting the values into equation (1), we have:

Total currency in circulation = $15 million - $1 million - $1 million = $13 million

Therefore, the total currency in circulation is $13 million.

an increase In long run aggregate supply can be expected to _______ the price level and ______ the natural rate of unemployment.​

Answers

Answer:

fall is the answer for both blanks

Changes in technology can cause changes in the productivity of a resource. Technological change can be economy-wide, industry-specific, or can occur within one firm's production process. Explain how a change in the productivity of a resource changes the demand for the resource. Give an example.

Answers

Explanation:

Globalization is a worldwide phenomenon caused by technological changes, with a greater possibility of communication between countries, there was a revolution in business, which became much more profitable when they were present in several countries in the world. An example of a change in the productivity of a resource that has been directly impacted by technological changes is the cell phone industry.

The change in resource productivity occurs both internally and externally to this niche, since with the globalization and ease of doing business outside the organization's host country, there is a quest to make the global value chain, with a focus on labor and cheaper raw material.

It is also necessary to consider that in the cell phone industry, technological change has added new features to the product making the device that only made connections a smartphone, a device with multiple features and internet access, such as Apple, which with advanced technology reaches every more consumers around the world.

The Office Supplies account is Select one: a. an asset, and it has a normal credit balance. b. a revenue, and it has a normal credit balance. c. an expense, and it has a normal credit balance. d. an asset, and it has a normal debit balance. e. a revenue, and it has a normal debit balance.

Answers

Answer:

C)

Explanation:

The letters in acronymic abbreviations must be

Answers

Answer:

In a correct order.

Explanation:

Question 2 of 10
Which of the following is an advantage of using a periodic inventory system?
A. It is less time consuming than other methods.
B. It is relatively easy and inexpensive to set up.

Answers

An advantage of using a periodic inventory system is that It is less time-consuming than other methods.

What is a periodic inventory system?

The periodic inventory system is a method of inventory valuation for financial reporting purposes in which a physical count of the inventory is performed at specific intervals.

What is a periodic inventory system for example?

Example of Periodic Systems. Periodic system examples include accounting for beginning inventory and all purchases made during the period as credits. Companies do not record their unique sales during the period to debit but rather perform a physical count at the end and from this reconcile their accounts.

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Sheridan Company incurred research and development costs of $93000 and legal fees of $33000 to develop a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Sheridan record as Patent Amortization Expense in the first year

Answers

Answer:

$3,300

Explanation:

Patent Amortization expense in first Year = Amount of legal fees / Useful life

= $33,000 / 10 years

= $3,300

Note: The amount of patent amortized is equal to the amount of Legal fees over the useful life of years.  i.e $33,000 should be considered as amortization of patent expense and it is amortized over the useful life of the asset.

what are the three ways in which a government can intervene in a market​

Answers

Answer:

there

Explanation:

regulation, taxation, and subsidies.

Answer:

Explanation:

regulation, taxation, and subsidies.

If a company invests in production improvement option D that will boost labor productivity by 50%, while its annual depreciation costs will rise by an amount equal to 10% of the investment costs associated with installing option D, it is accurate to say that its labor costs per pair produced will decline

Answers

Answer: from $8.00 per pair to $5.33 for a production facility in North America that currently has labor productivity of 5000 pairs per worker and total regular compensation (which does not include overtime pay) of $40,000 annually.

Explanation:

Since we have been informed that the labor productivity be boosted by 50%, since the production facility in North America currently has labor productivity of 5000, then the new labor productivity will be:

= 5000 (1 + 50%)

= 5000 (1 + 0.5)

= 5000 (1.5)

= 7500

Also, since total regular compensation was given s $40,000 annually, the labor cost will then be:

= 40,000 / 7500

= $5.33

Résumés should include the following:

your contact information
education history
family history
work history

Answers

Answer:

Education history

Explanation:

When you are looking for a job more than liky the job wants to know what school you went to and what level of education you have. Most job said you can take it right after high school some other job tell you you have to go through college other what a whole different school or training you have to go through.

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called:

Answers

Answer:

Core deposits.

Explanation:

The stable and predictable base of deposited funds that are not highly sensitive to movements in market interest rates but tend to remain with the bank are called core deposits.

Basically, this type of deposit gives rise to a stable source of money (funds) used for lending by financial institutions such as banks to its customers. Core deposits include all active accounts by customers, certificate of deposits, money market deposits, time deposits, demand deposits, etc.

The main purpose of the core deposits is to ensure there are predictable costs and it can be used to measure a customer's loyalty.

You sold one corn future contract at $2.29 per bushel. What would be your profit (loss) at maturity if the corn spot price at that time were $2.10 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.
A) $950 profit.
B) $95 profit.
C) $950 loss.
D) $95 loss.
E) None of the options are correct.

Answers

Answer:

A) $950 profit.

Explanation:

the spot price is $2.10, but you are selling at $2.29. This means that you are making a $2.29 - $2.10 = $0.19 profit per bushel. Since the contract is for 5,000 bushels, then your total profit = 5,000 bushels x $0.19 per bushel = $950

on the other hand, if you had purchased the futures contract, you would have lost the $950.

Allowance for Doubtful Accounts has a debit balance of $900 at the end of the year (before adjustment), and bad debt expense is estimated at 1% of credit sales. If credit sales are $950,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts
a. is $10,400
b. is $9,500
c. is $900
d. is $8,600

Answers

Answer:

a. is $10,400

Explanation:

The adjusting entry is as follows:

bad debt expense Dr ($950,000 × 1% + $900) $10,400

       To Allowance for doubtful debts $10,400

(Being bad debt expense is recorded)

here the bad debt expense is debited as it increased the assets and credited the allowance for doubtful debt is credited as it decreased the assets

Therefore the correct option is a.

Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.

Answers

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

Which method of project selection gives consideration to the time value of money in a capital budgeting decision?
A. Payback method.
B. Average rate of return.
C. Accounting rate of return.
D. Discounted cash flows method.

Answers

Answer:

D. Discounted cash flows method.

Explanation:

The discounted cash flow method is the method in which it discounted all the cash flows to their their present value

Also it provides the consideration with respect to the times value of money while taking decision related to capital budgeting

hence, the correct option is D

And all the other options are incorrect

A capital budgeting decision is a financial commitment and an investment, As by asking a project the business is taking commitments.  

TMV in capital budgeting is a decision through the discounting cash flow. The DFC is a method of valuing the social projects of the company along with the assets. They are estimated and discounted using the cost of capital.

Hence the option D is correct.

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Starbucks wants to use the subjective approach to evaluate a new project. They are considering expanding their stores and renting office space to small business owners. They will have a separate reception area and online scheduling for those that want to use the office space. Starbucks has a WACC of 12%. What would be the WACC for this new project?
Category Examples Adjustment Factor
High risk New products 6%
Moderate risk Cost savings,
Expansion of existing products 0
Low risk Replacement of existing
equipment (4)
Mandatory Safety equipment n/a
Multiple Choice
A) 16%.
B) 12%.
C) 24%.
D) 18%.
E) It cannot be determined.

Answers

Answer:

D) 18%.

Explanation:

The WACC for this new project = Current WACC + Adjustment Factor (High Risk)

WACC for this new project = 12% + 6%

WACC for this new project = 18%

Note: Attached as picture shows the reason for the chosen Adjustment factor

Green Mountain Producers Inc. is an oil drilling company. the company paid a dividend of $3.10 last year, and, in the past, its dividend has increased steadily by about 4% a year. Green Mountain just announced that its dividend will increase to $4.20 this year, and its share price rose from $38 per share to $40 per share immediately after the announcement.
Which of the following best explains why Green Mountain's stock price increased as it did?
The clientele effect
Dividend irrelevance theory
The signaling hypothesis
Which of the following statements is true?
Taxes on dividend income are paid in the year that they are received.
Taxes on dividend income s are paid when the stock is sold.
As a result, the U.S. tax code encourages many individual investors to prefer to receive _____
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of_______ explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of:________.
the information content effect
the clientele effect

Answers

Answer:

answer to the first question:

The signaling hypothesis

This theory basically states that when a company announces higher dividends, it means that it is performing better than expected and the company's management believes that it will grow more in the future.

answer to the second question:

Taxes on dividend income are paid in the year that they are received.

Dividends are taxed as ordinary income, so they will be taxed on the year that they are received.

fill in the blanks:

As a result, the U.S. tax code encourages many individual investors to prefer to receive long term capital gains.

Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. the theory of signaling explains this phenomenon.

In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of: the clientele effect.

HELP ASAP
Bank auditing is mainly done to
(Select all that apply.) Multiple choice
A. Curb money laundering
B. Insure deposits for all customers
C. Stop international finance crimes
D. Prohibit electronic trading arbitrage

Answers

A, B, C, D. That all

What is a company likely to do if their celebrity endorser is involved in a scandal?
A.
wait and see what happens
B.
determine the nature of the scandal
C.
cancel the endorsement contract immediately
D.
give no comment to the news media

Answers

Answer:

I think its B. it can't be D and probably not A. And depending on how bad it is they may cancel but if they dont know what it is first then they shouldn't cancel the endorsement.

Answer:

C

Explanation:

I would think first they would determine the nature of the scandal & then decide how damaging it is to see whether or not if they have to drop the celebrity or not , some brands stick with their celebrities unless its really something bad.

Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?

Answers

Answer:

the number of kanbans card sets required is 1.75 kanban sets

Explanation:

The computation of the number of kanbans card sets required is as follows:

Kanban cards is

= Average number of demand × lead time × (1 + Safety stock) ÷ Size of the container

= 5 × 1 × (1 + 0.40) ÷ 4

= 7 ÷  4

= 1.75 kanban sets

hence, the number of kanbans card sets required is 1.75 kanban sets

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Which of the following colors is highly variable and can be either cool or slightly warm, depending on how it is used?

Answers

Explanation:

Dark blue with dark red

A machine that cost $86,400 and on which $63,600 of depreciation had been recorded was disposed of for $24,480. Indicate whether a gain or loss should be recorded, and for what amount.
Amount of Loss/Gain

Answers

Answer:

the gain on disposal of machine is $1,680

Explanation:

The computation of the amount of loss or gain is as follows:

Cost of Assets is $86,400

Less: Accumulated Depreciation ($63,600)

Book Value of Assts $22,800

Now the sale value of the asset is $24,480

So there is a gain of

= $24,480  - $22,800

= $1,680

hence, the gain on disposal of machine is $1,680

Swift Co. produces footballs. It incurred the following costs this year:
Direct materials $35,000
Direct labor 31,000
Fixed manufacturing overhead 22,000
Variable manufacturing overhead 38,000
Fixed selling and administrative expenses 23,000
Variable selling and administrative expenses 14,000
What are the total product costs for the company under variable costing?
Total product costs under variable costing $ _

Answers

Answer:

Total variable cost= $104,000

Explanation:

Giving the following information:

Direct materials $35,000

Direct labor 31,000

Variable manufacturing overhead 38,000

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Total variable cost= 35,000 + 31,000 + 38,000

Total variable cost= $104,000

The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day. The average lead time to get a shipment of flour is 9 days with a standard deviation of 2 days. The owner of the bakery wants to maintain a service level of 95%.

z-value Probability
1.63 .9485
1.64 .9500
1.65 .9505
1.66 .9515
1.67 .9615
Which one of the following is true about the reorder point for flour?

Answers

Answer:

The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day is explained below in detail.

Explanation:

In my practice, it doesn't save capital, but it's still deserving it because it's wholesome and better than reserve purchased at the same amount.

For me, 1kg of all-purpose powder yields 1.6kg of bread (as two cubes). Each 13x4x4" (Pullman) loaf measures about 800 grams after freezing and yields between 22-30 slices related to its width. The value per loaf is under $1.00 and incorporates all components, charge, and electricity for mixing, baking, slicing.

I've created a few hundred loaves based on modifications of this formula:

                     %  grams   cost  calories sodium protein fat sugar

all-purpose powder    100  500   0.417  1833   0      50    17      0

   instant yeast    0.8    4   0.067    16   0       0     0      3

 non-fat dry milk      4   20   0.203    70   0       7    10    109

sugar      4   20   0.019    75   0       0    20      0

      canola oil     10   50   0.072   429  50       0     0

            salt      2   10   0.006     0   0       0     0   3933

           water     56  280   0.000     0   0       0     0      0

     dough total  176.8  884  $0.783  2422  50      57    47   4045

Explain how the circular flow of income operates making reference to the injections and withdrawals and physical and monetary flows.

Answers

Answer:

It shows flows of goods and services and factors of production between firms and households

The circular flow shows how national income or Gross Domestic Product is calculated

Businesses produce goods and services and in the process of doing so, incomes are generated for factors of production (land, labour, capital and enterprise) – for example wages and salaries going to people in work.

Leakages (withdrawals) from the circular flow

Not all income will flow from households to businesses directly. The circular flow shows that some part of household income will be:

1.Put aside for future spending, i.e. savings (S) in banks accounts and other types of deposit

2.Paid to the government in taxation (T) e.g. income tax and national insurance

3.Spent on foreign-made goods and services, i.e. imports (M) which flow into the economy

Withdrawals are increases in savings, taxes or imports so reducing the circular flow of income and leading to a multiplied contraction of production (output)

Injections into the circular flow are additions to investment, government spending or exports so boosting the circular flow of income leading to a multiplied expansion of output.

Capital spending by firms, i.e. investment expenditure (I) e.g. on new technology

The government, i.e. government expenditure (G) e.g. on the NHS or defence

Overseas consumers buying UK goods and service, i.e. UK export expenditure (X)

An economy is in equilibrium when the rate of injections = the rate of withdrawals from the circular flow.

Building up the model

In this next series of images we build up the circular flow model from just having a domestic sector and then adding in an external sector (exports and imports) before including the financial sector which channels savings and hopefully provides the finance available to fund investment.

The Domestic Circular Flow of Income and Spending

The external sector involves businesses exporting goods and services overseas (X) and consumers and business buying imported products from other countries (M)

Explanation:

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When leakage equals injections, the nation's economic cycle is said to be in balance.

What is economic cycle?

The term "economic cycle," usually referred to as a "business cycle," describes the swings in the economy's growth and decline.

The present stage of the economic cycle can be determined using variables like gross domestic product (GDP), interest rates, total employment, and consumer expenditure.

Since the economic cycle directly affects stocks, bonds, profits, and corporate earnings, understanding it can help investors and businesses decide whether to invest and when to withdraw their funds.

An economy travels in a circular motion from expansion to recession and back again, which is referred to as an economic cycle. Growth is a sign of an expanding economy.

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which of the following is a step in the marketing process

Answers

a) understanding the market place and
customer needs and want
b) Designing A customer-Driven Marketing strategy
c) Build profitable relationships
d) capturing value from customers
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