During the course of your examination of the financial statements of trojan corporation for the year ended december 31, 2018, you come across several items needing further consideration. currently, net income is $100,000.

a. an insurance policy covering 12 months was purchased on october 1, 2018 for $24,000. the entire amount was debited to prepaid insurance and no adjusting entry was made for this item in 2018.

b. during 2018, the company received a $4,000 cash advance from a customer for services to be performed in 2019. the $4,000 was incorrectly credited to service revenue.

c. there were no supplies listed in the balance sheet under assets. however, you discover that supplies costing $2,750 were on hand at december 31, 2018.

d. trojan borrowed $70,000 from a local bank on september 1, 2018. principal & interest at 9% will be paid on august 31, 2019. no accrual was made for interest in 2018.

using the information in a through d above, determine the proper amount of net income as of december 31, 2018.

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow

There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration