Tim’s Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim’s Donuts’ employees had worked 15 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment totaling $2,650,000 which was depreciated at $265,000 per year. Prior to adjustments, the company’s trial balance showed $310,550 in the wage expense account and $110,375 of inventory.If Tim's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31, 2021, balance sheet as inventory?Select one:A. $345,400B. $110,375C. $190,775D. $80,400
Tim’s Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim’s Donuts’ employees had worked 15 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment totaling $2,650,000 which was depreciated at $265,000 per year. Prior to adjustments, the company’s trial balance showed $310,550 in the wage expense account and $110,375 of inventory.If Tim's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31, 2021, balance sheet as inventory?Select one:A. $345,400B. $110,375C. $190,775D. $80,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tim’s Donuts has 10 employees who are paid $20 per hour. The company purchases its inventory, on account, daily. At December 31, 2021, each of Tim’s Donuts’ employees had worked 15 hours which had not been paid or recorded. Also on this date, the company had taken receipt of $80,400 of inventory from its suppliers which had not been recorded in the accounts. As of the beginning of 2021, the company had equipment totaling $2,650,000 which was depreciated at $265,000 per year. Prior to adjustments, the company’s trial balance showed $310,550 in the wage expense account and $110,375 of inventory.If Tim's Donuts makes the appropriate adjusting entry , how much will be reported on the December 31, 2021, balance sheet as inventory?Select one:A. $345,400B. $110,375C. $190,775D. $80,400
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