Blackfly Ltd. had no outstanding current liabilities at the start of year 2007. During the year, the company paid $300,000 for direct labour. At the end of the year the company still owed a $2.000 performance bonus to one employee, and $33,000 to another employee. The amount the company would report as labour expense for 2007 is $325,000 $302.000 none of the listed answers are correct $300,000 $298.000 G
Q: Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the…
A: Long term assets are purchased to help the business in earning revenue but the benefit of which is…
Q: Prepare entries to reflect correct land, buildings, and depreciation accounts at December 31, 2021.…
A: Journal Entry - It is used to record the day to day business transaction whether it is economic or…
Q: Rembrandt Paint Company had the following income statement items for the year ended December 31,…
A: Income Statement -A company's financial success for a given accounting period is reported via the…
Q: At December 31, 2019, one of TOCINO Company’s credit customers, HOTDOG Trading, is experiencing…
A: Introduction to Impairment loss Impairment loss generally occurs when a business asset suffers a…
Q: Pineapple Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In…
A: Solution: As per GAAP, change in accounting estimated will be accounted for on prospective basis,…
Q: Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should…
A: The loss which has been given which could be definitely occur so the contingencies provision is…
Q: A company purchased a machine at the cost of $759,600 on March 1 of year 1. On the same day, the…
A: As per IAS-16 under Property, Plant, and Equipment, an asset is recognized at cost price. Only the…
Q: The following issues of Provi Ltd. are still outstanding at the yearend. Help the accountant to…
A: Provisions are created for liabilities of uncertain timing or amount. contingent liabilities are…
Q: Ace Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered…
A: After-tax income refers to the net income after deducting all applicable taxes.
Q: Tony, age 15, is claimed as a dependent by his grandmother. During 2016, Tony had interest income…
A: Given: Interest income = $ 1,000 Earnings from part-time job = $ 850
Q: Class, Plaintiff GG Company convinced the court that JJ Company had engaged in antitrust actions…
A: The question is related to financial damages on account of loss of earnings during the period of 18…
Q: mpany has a 7% profit margin and discovered employee fraud of $770,000 for the year. Calculate the…
A: Explanation of Concept Profit margin is the amount which is calculated as follows Profit Margin =…
Q: Suppose a computer software developer for a certain company purchased a computer system for 55,000…
A: Depreciation refers to decrease in the monetary value of an asset due to obsolescence, wear and…
Q: Toni Skysong Inc. has the folowing amountS reported in its general ledger at the end or the current…
A: Intangible assets are those assets which can not be seen or touched but are related to business such…
Q: At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not…
A: The objective of the question is to determine the correct journal entry to record the unrecorded…
Q: Rembrandt Paint Company had the following income statement items for the year ended December 31,…
A: A multi-step statement of income divides total income and expenses into operating and quasi…
Q: Borgen Ltd prepared draft financial statements for the most recent year, which reported a profit…
A: Net profit: It is the profit derived from the business operations during a particular financial…
Q: n 2019 the company has produced 8 000 units. According to the Accountant’s calculations the unit…
A: Gross Profit is arrived at by deducting the cost of goods sold from sales. However, if the cost of…
Q: P.Q. Enterprises operates a wholesale business. At the 2020 year end, the accounts receivable…
A: When the chances of non-collection of account receivables increase they are written off as bad…
Q: High Sky Ltd incurred the following expenses and revenues for the reporting period ended 30 June…
A: Other Comprehensive income describes revenues, expenses, profit or loss which are yet to be realized…
Q: Use the following information for the Exercises below. (Algo) Skip to question [The following…
A: Introduction: A general ledger item made at the end of the accounting period to indicate any…
Q: Meman
A: AssetsLiabilitiesStockholders EquitySolution2020-21200 -21200 Computing the depreciation expense…
Q: [The following information applies to the questions displayed below.) Hitzu Company sold a copier…
A: Warranty Expense is the expense incurred for the repair or replacement of goods that are sold.…
Q: The standard cost of a gallon of paint manufactured by Through-the-Letters, Inc. includes 4 pounds…
A: Materials price variance = (Standard price - Actual price) x Actual quantity Materials quantity…
Q: At the beginning of the year, Teal Corporation had accumulated E & P of $210,000. On March 30, Teal…
A: INTRODUCTION: Dividends are paid by corporations for a variety of reasons. However, a few things…
Q: Pacific Chemicals commenced operations on 1 July 2009. For the year ended 30 June 2010, the company…
A: The question is related to Cash Flow Statement. Since the Company has Commenced its operation on 1st…
Q: Consider each of the transactions below. All of the expenditures were made in cash. The Edison…
A: All the cost related to research phase of a intangible asset will be part of expenses. Cost related…
Q: You are an actuary and have historical data on the table below. Find annual expected loss per…
A: Variables in the question:No. of employees=60,000 Frequency (Total)=5,000 Severity…
Q: HE Ltd is a company incorporated in SG and prepares its financial accounts based on the Singapore…
A: Original Carrying amount that would have been there as at 1st Jan 20X4 if no revaluation has been…
Q: a. Blue Company's records show that current and former customers owe the firm a total of $4,300;…
A: Financial statement:Financial statements are important papers that summarize a company's financial…
Q: 5. Gina has a total monthly deduction of e P2,845. If her take-home pay is P18,945, ho- much is her…
A: Net income is calculated by deducting the deductions from the gross earnings of the individual.
Q: Hackman Corporation began on September 23rd of the current year. Hackman incurred $40, 000 of…
A: Startup costs are the costs which are incurred during the process of establishing a new business.…
Q: Because of a shortage of working capital the company was forced to sell off some land for $300,000…
A: The objective of the question is to understand how the sale of land, its purchase cost, current…
Q: Dawson Co’s computerised wages program is backed up daily, however for a period of 3 months the…
A: Answer; Dawson Co’s computerised wages program is backed up daily, however for a period of 3 months…
Q: adjusted balance of 2021 net income.
A: Definition: Net income: It refers to net earnings of the business or an individual after making…
Q: There was an explosion at the plant on December 23, 2021 with damages estimated at $1,385,000. The…
A: As investigated from the given details, the loss appears to have happened due to company's error.
Q: ABC Inc. has is being sued by a customer. The plaintiff (customer) claims $50,000 for product…
A: ABC Inc. has is being sued by the customer for product deficiencies = $50000 Lawyer of the company…
Q: State what type of auditor’s report should be issued
A: Auditing is done in order to determine whether the financial statements which the company has…
Q: Explain whether Colston Company correctly reported the following items in the financial…
A: (a)Extraordinary Items: There are times when a company faces unusual and infrequent gains and…
Q: Eng Hardwares has the following balance as at 30 November 2020: Accounts RM’000 Wages(Debit) 110,000…
A:
Step by step
Solved in 3 steps
- Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's fiscal year ends on December 31. Gatsby was unable to pay the amount owed by February 1, 2021 due date because of financial difficulties experienced in early 2021. On February 1, 2021, it signed a $500,000, 10% interest- bearing note. This note was repaid with interest on September 1, 2021. How much interest should Gasby recognize on September 1, 2021 (enter your answer in whole dollars, no comma or dollar sign)?Current Attempt in Progress Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by Pharoah Corporation. 1. 2. Pharoah developed a new manufacturing process, incurring research and development costs of $121,000. The company also purchased a patent for $65,000. In early January, Pharoah capitalized $186,000 as the cost of the patents. Patent amortization expense of $9,300 was recorded based on a 20-year useful life. On July 1, 2022, Pharoah purchased a small company and as a result recorded goodwill of $87,000. Pharoah recorded a half- year's amortization in 2022, based on a 20-year life ($2,175 amortization). The goodwill has an indefinite life. Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,…Eng Hardwares has the following balance as at 30 November 2020: Accounts RM'000 Wages(Debit) 110,000 Insurance(Debit) 2,000 Rental(Credit) 50,000 i. Eng Hardwares pays wages to its workers at the end of every month. However, some internal problems arise and it did not pay wages amounting to RM10,000 to its workers on time on the last day of December 2020. ii. It paid RM 10,000 for insurance covered from period December 2020 until March 2021 on 3rd December 2020. iii. It rents out part of its warehouse to another business for RM2,000 per month and receives the rent on the last day of each quarter on 31th June, 30th September, and 31st December. However, the tenant has some financial difficulties and failed to pay the three- month rent from October 2020 to December 2020 on 31 December 2020. iv. On 1 December 2020 it received RM21,600 for a one year rental from a new tenant. Prepare the journal entry for the reversal of the balance on the last day of…
- The following information is taken from Marsh Marsh Supermarkets Supermarkets annual report: During the first quarter, we made several decisions resulting in a $13 million charge to earnings. A new accounting pronouncement, FAS 121, required the Company to take a $7.5 million charge. FAS 121 dictates how companies are to account for the carrying values of their assets. This rule affects all public and private companies. The magnitude of this charge created a window of opportunity to address several other issues that, in the Company’s best long term interest, needed to be resolved. We amended our defined benefit retirement plan, and took significant reorganization and other special charges. These charges, including FAS 121, totaled almost $13 million. The result was a $7.1 million loss for the quarter and a small net loss for the year. Although these were difficult decisions because of their short term impact, they will have positive implications for years to come. Marsh Supermarkets’…S The CFO of the Benson Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $675,000 as a product cost in an accounting period when the company made 9,000 microscopes and sold 6,500 microscopes. Benson rewards its officers with bonuses that are based on net earnings. Required a. Indicate whether the elements on the financial statements (i.e., assets, liabilities, equity, revenue, expense, and net income) would be overstated or understated as a result of the misclassification of the downstream transportation expense. Determine the amount of the overstatement or understatement for each element. Note: If there is no effect, select "Not affected" from the dropdown provided. Enter all answers as positive values. Assets Liabilities Retained earnings Revenue Expense Net income 418. Dole Corp.'s accounts payable at December 31, 2012, totaled $650,000 before any necessary year-end adjustments relating to the following transactions: On December 27, 2012, Dole wrote and recorded checks to creditors totaling $350,000 causing an overdraft of $100,000 in Dole's bank account at December 31, 2012. The checks were mailed out on January 10, 2013. On December 28, 2012, Dole purchased and received goods for $150,000, terms 2/10, n/30. Dole records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2013. Goods shipped f.o.b. destination on December 20, 2012 from a vendor to Dole were received January 2, 2013. The invoice cost was $65,000. At December 31, 2012, what amount should Dole report as total accounts payable? a. $1,212,000. b. $1,147,000. c. $900,000. d. $800,000.
- Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment Accumulated Depreciation (beginning of the year) $ 344,000 212,000 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 3,550 41,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $26,000 estimated residual value. The annual accounting period ends on December 31. Required: - Indicate the effects (accounts, amounts, and + for increase and – for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020. 2. The two expenditures…AshvinbhaiPastina Company manufactures and sells various types of pasta to grocery chains as private label brands. The company’s fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2011, appears below: The equipment is being depreciated using the straight-line method over an eight-year useful life with $10,000 salvage value. The company estimates that 4% of all year-end accounts receivable probably will not be collected. Employee wages are paid twice a month, on the 22nd wages earned for the 1st through the 15th , and on the 7th of the following month for wages earned from the 16th through the end of month. Wages earned from December 16 through December 31, 2011, were $1,565. On October 1, 2011, Pastina borrowed $50,800 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 10%. The principal is due in 10 years. On April 1, 2011, the company lent a supplier $28,000 and a note was signed requiring principal and…
- In 2021, Winslow International, Inc.’s controller discovered that ending inventories for 2019 and 2020 were overstated by $220,000 and $520,000, respectively.Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.)Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The accounting records of Ehrlich Inc. show the following data for 20201. Life insurance expense on officers was $10,000.2. Equipment was acquired in early January for $450,000. Straight-line depreciation over a 6-year life is used, with no salvagevalue. For tax purposes, Ehrlich used a 30% rate to calculate depreciation.3. Interest revenue on municipal bonds totaled $3,600.4. Product warranties were estimated to be $90,000 in 2020. Actual repair and labor costs related to the warranties in 2020were $24,000. The remainder is estimated to be paid evenly in 2021 and 2022.5. Sales on an accrual basis were $500,000. For tax purposes, $400,000 was recorded on the installment-sales method.6. Fines incurred for securities violations were $10,600.7. Pretax financial income was $460,000. The tax rate is 30%.Instructions(a) Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020.(b) Prepare the journal entry for 2020 to record income taxes payable,…