Business, 19.05.2020 14:01 brde1838

In the course of routine checking of all journal entries prior to preparing year-end reports, Betty Eller discovered several strange entries. She recalled that the president’s son Joe had come in to help out during an especially busy time and that he had recorded some journal entries. She was relieved that there were only a few of his entries, and even more relieved that he had included rather lengthy explanations. The entries Joe made were:

(1) Work in Process Inventory 25,000
Cash 25,000
(2) Manufacturing Overhead 12,000
Cash 12,000
(3) Wages Expense 120,000
Cash 120,000
(4) Work in Process Inventory 3,000
Raw Materials Inventory 3,000

(a) How should Joe have recorded each of the four events?
(b) If the entry was not corrected, which financial statements (income statement or balance sheet) would be affected? What balances would be overstated or understated?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 10:00

Which term best fits the sentence? is the process of reasoning, analyzing, and making important decisions. it’s an important skill in making career decisions. a. critical thinking b. weighing pros and cons c. goal setting

Answers: 1

Answer

Business, 22.06.2019 10:40

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Answers: 2

Answer

Business, 22.06.2019 16:30

Suppose that electricity producers create a negative externality equal to $5 per unit. further suppose that the government imposes a $5 per-unit tax on the producers. what is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

Answers: 2

Answer

Business, 22.06.2019 21:20

Afamily wishes to save for future college expenses. which financial tool should the family invest in?

Answers: 1

Answer

You know the right answer?

In the course of routine checking of all journal entries prior to preparing year-end reports, Betty...

Questions