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77julia77 [94]
2 years ago
14

On March 1, it was discovered that the following errors took place in journalizing and posting transactions:

Business
1 answer:
kaheart [24]2 years ago
5 0

Answer:

a. Reversal entry:

Debit Rent expense $4,650

Credit Miscellaneous Expense $4,650

Correct Entry:

Debit Rent expense $4,650

Credit Cash $4,650

b. Reversal entry:

Debit Accounts payable $3,700

Credit Cash $3,700

Correct Entry

Debit Cash $3,700

Credit Accounts Receivable $3,700

Explanation:

Reverse entry is to simply close to zero the original entry that has been made in mistake. Afterwards, record the correct entry to properly account the transaction.

To reverse the previously made entry, we simply debit what is credited and debit what is credited.

a. We need to close the rent expense credited by debiting it and credit the miscellaneous expense that is previously debited to zereod out the mistake recording. Then to record the correct entry, Debit Rent expense and Credit Cash at the amount $4,650

b. Just ike what we did on the previous transaction, we will debit the Accounts payable and credit the cash that has been recorded by mistake to zereod out the balance and then make the correct entry. Debit Cash $3,700 and credit Accounts receivable $3,700.

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5 0
1 year ago
Denton Company manufactures and sells a single product. Cost data for the product are given below:
marissa [1.9K]

Answer:

1. The unit product cost under absorption costing and variable costing.

Product Cost : Absorption Costing = $23,44

Product Cost : Variable Costing = $19.00

2. Contribution format variable costing income statements for July and August.

                                                                       July                 August

Sales                                                         1,196,000            1,612,000

Less Cost of Sales :                                 (437,000)             (513,000)

Opening Stock                                                0                      76,000

Add Production                                         513,000               513,000

Less Closing Stock                                   (76,000)               (76,000)

Contribution                                             759,000            1,099,000

Less Expenses :

Selling and administrative expenses

Variable :                                                   (23,000)               (21,000)

Fixed :                                                      (169,000)             (169,000)

Net operating income                             567,000              909,000

3. Reconcile the variable costing and absorption costing net operating income

                                                                          July                      August

Absorption costing net operating income   $584,760               $891,240

Add Fixed Costs in Opening Inventory                                          $17,760

Less Fixed Costs in Closing Inventory          ($17,760)

Variable costing net operating income       $567,000              $909,000

Explanation:

Product Cost : Absorption Costing = All Manufacturing Costs (Fixed and Variable)

                                                          = $5+$11+$3+($120,000/27,000)

                                                          = $5+$11+$3+$4.44

                                                          = $23,44

Product Cost : Variable Costing = Variable Manufacturing Costs

                                                     = $5+$11+$3

                                                     = $19.00

6 0
1 year ago
Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund wa
Sergio [31]

Answer:

A credit to Cash of $299

Explanation:

Journal Entry                     Debit    Credit

Merchandise inventory      $62

Delivery charges                 $46

Office supplies                    $30

Miscellaneous expenses    $51

Cash over and short             $100

Cash                                                   $299

Cash to be reimbursed = Minimum cash balance required - Cash balance left

Cash to be reimbursed = $500 - $201

Cash to be reimbursed = $299

7 0
2 years ago
Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo
german

Answer:

price = $47.82

Explanation:

Find the present value of each dividend at the required rate of return and sum them up to get the current price;

PV = FV /(1+r)^n

PV(D1) = 3.55/ (1.099^1) = 3.2302

PV(D2) = 4.65/ (1.099^2) = 3.8500

PV(D3) = 5.85 / (1.099^3) = 4.4072

PV(Price at t=4) = 53 / (1.099^4) = 36.3316

Price = 3.2302+2.9392+4.4072+36.3316

= 47.81897

Therefore, price = $47.82

8 0
2 years ago
An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

rate of return   = 8 %

5 0
1 year ago
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