adjusted total expenses?
Q: Define Expenses
A: Expenses are the cost that is incurred by the firm or the company to run the business. Basically,…
Q: Calculate the adjusted net income
A: Adjusted net income of the business shows all incomes and all expenses of the business and at the…
Q: Under the matching principle, when are expenses recorded?
A: Accrual accounting: The method of accounting which recognizes revenues before they are received, and…
Q: What are accrued expenses and when are they recorded?
A: Expenses refer to the outflow of cash in exchange for goods and asset purchased or services received…
Q: What is an accrued expense? Provide an example.
A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…
Q: Explain the difference between accrued and prepaid expenses with illustrative examples.
A: Accrued expenses are those expenses which have been incurred but not yet paid out. For example, a…
Q: calssify the following expenses between selling expenses and general and administrative expenses.…
A: Indirect expenses can be classified into three part: (1) Factory expenses (2) Office and…
Q: Accrued expenses are :
A: Accrued expenses are expenses that are incurred for the particular period but has not been paid yet.…
Q: What are prepaid expenses
A: Prepaid Expense: Prepaid expense refers to the expense made for the service prior to the consumption…
Q: accrued interest expense o
A: It is pertinent to note that under accrual concept of accounting transactions are recorded and when…
Q: WHAT IS THE TOTAL GENERAL AND ADMINISTRAVE EXPENSES?
A: The administration expenses are related to funciton of business but not directly or indirectly…
Q: e accrued interest income
A: Interest on note = Amount of note * Interest rate * Number of months elapsed/Number of months in a…
Q: What is accrued expenses
A: Accrued expenses means the expense which has been due but not paid.
Q: What are operating expenses?
A: Expenses refers to the money outflow or the assets outflow to another company or to individual…
Q: Calculate Net interest Income Non-interest income Non-interest expenses
A: Given a statement of the balance of a bank and we need to find out the interest income noninterest…
Q: how to compare between prepaid expenses and unearned revenue?
A: The adjustment for deferred items are made at the end of the year.
Q: What is accured expenses with example
A: Definition: Expenses: Expenses are costs incurred for the operations of a business. The costs…
Q: prepaid expense meaning
A: Under Accrual concept of accounting incomes and expenses are recognized as and when they occur.…
Q: Explain accrued expenses in detail .
A: In the above question we have asked to explain accrued expenses which is as below.
Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?
A: The business adjust the profits of the business for the current year considering deferred and…
Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Rent…
A: Revenues are the amount received from the sale of goods and services. Expenses are the cost…
Q: Does every adjusting entry affect net income for a period? Explain.
A: Net income: Net income is the excess amount of revenue which is arises after deducting all the…
Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Owner…
A: Owner’s equity: The claims of owners on a company’s resources, after the liabilities are paid off,…
Q: What adjusting entries would you pass in respect of income received in advance, outstanding…
A: Adjusting Entries:- Adjusting Entries referred as those entries, that are occurred at the end of…
Q: How do I find retained earnings And cash? For adjusted trial balance?
A: Retained earnings in the business means accumulated earnings of the business for the owners.
Q: Why is Profit and Loss Adjustment Account prepared? Explain.
A: There are following two reasons of why Profit and loss adjustment account is prepared;- 1. To…
Q: how to calculate administrative expenses
A: Selling and administrative expenses are expenses related to after production process. It includes…
Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Insurance…
A: Financial Accounting: It refers to the process of recording the financial transactions of the…
Q: What is salaries payable an equity, revenue, expense account, liability or expense?
A: Balance Sheet - Balance Sheet is combination of assets, liabilities and equity. It is prepared at…
Q: How do accrued but unpaid expenses affect the balance sheet?
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: expenses. unearned revenues. accrued revenues.
A: The correct answer is c. accrued revenues ex. Fees for services that an attorney or doctor has…
Q: Which Accounting Principles says personal expenses should be debited to Drawings Account. a.…
A: Lets understand all the accounting principal given in the option. As per the accounting entity…
Q: Define prepaid expenses and provide at least two examples
A: Prepaid expense: Expenses of future period are paid in advance. These expenses are called prepaid…
Q: what is assets? what is non-current assets? what is current assets? what is equity? what is…
A: Since you have asked multiple questions, we will solve the first seveb questions for you. If you…
Q: What impact does an increase in expenses have on net income
A: In accounting we say that: Net income = Total revenue - total expenses
Q: What is Prepaid Expense? Provide example
A: Prepaid expenses are considered as an asset which is resulted from an advance payment for expenses…
Q: What is the major distinction (a) between revenues and gains and (b) between expenses and losses?
A: The major distinction between revenues and gains (or expenses and losses) depends on the typical…
Q: Differentiate using an example company’s primary revenue and secondary revenue, company’s primary…
A: Revenue refers to the funds generated by an entity through its direct or indirect business…
Q: Define Prepaid expenses.
A:
Q: amount should the account payable be adjusted
A: Purchases at net amount = Purchases - Purchase discount - Purchase returns.
Q: Net Income and Retained Earning:
A: Borio company had an asset with an $8 book value and its market value is $7. It is decided to…
Q: how to calculate operating expenses
A: Operating expenses refer to those expenses which brought about during standard business tasks. These…
Q: When to recognize expenses?
A: Under the accrual basis of accounting, revenue is considered to have been earned when goods are sold…
Q: What is the formula used to get the answers in interest expense and net income?
A: The interest expense is the amount a borrower has to pay against the amount borrowed. It is…
Step by step
Solved in 2 steps
- Adjusting Entries The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total 2,840 on December 31. 2. The 247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of 78,000, 25-year life, and 9,000 residual value are to be depreciated; equipment with a cost of 44,000, 8-year life, and 2,000 residual value is also to be depreciated. The straight linemethod is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by 128 and the Office Supplies account reduced by 397 for supplies used during the year. 5. The company holds a 6,000, 12% (annual rate), 6 month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total 65,000. 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for 528 of expired insurance. 8. A review of travel expense reports indicates that 310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is 18,270. Required: Journalize the necessary year-end adjusting entries for Drake. Show supporting calculations in your journal entry explanations.Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The company had a great year and earned a net income of $80,000. However, the companys controller determined that it had made an error when calculating depreciation in the preceding year, resulting in an understated depreciation expense amount of $2,000. What is the ending retained earnings balance?Q10: Gulf Mushroom Products Company purchased a machine for OMR 10,000 for which depreciation will be measured as per diminishing balance method (WDV). Depreciation is calculated at 8% per annum for first 3 years and after that due to change in the accounting standards the rate of depreciation is changed to 10% per annum for next 2 years.a) What will be the book value of the machine after 5 years b) The accounts department informed you that book value of the machine after 5 years will be OMR 4,000. Do you agree with the value specified by accounting department? c) Is depreciation good or bad for the business? Discuss with reasons
- On August 1 of year 0, Dirksen purchased a machine for $25,500 to use in its business. On December 4 of year 0, Dirksen sold the machine for $24,000. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) Problem 11-42 Part-a (Algo) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead?34. Subject : - Accounting In 20X4, Fredup Inc. purchased a piece of equipment for $21,000. The equipment has a 7-year useful life and no residual value. The equipment was erroneously included as an expense in the year. The error was discovered in December 20X8. Required: Prepare the journal entry to record the adjustment in December 20X8. (Assume the company uses straight line depreciation, ignore taxes.)Chang Company has a December 31 year end. In year 7 it bought a piece of equipment at the start of the year for $575,500 and employed straight line depreciation over 5 years with an estimated residual value of $72,750. At the start of year 8 Chang decides to change the depreciation method to double declining balance (same life and salvage). This is considered a change in accounting policy and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported at December 31st of Year 7 before knowing the accounting policy will change? Required 2: What is the amount of Depreciation Expense to be reported for the year ended December 31st of Year 8? Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized for year 7 when depreciation method is changed? Required 4: What is the Net Book Value of the equipment on December 31st of Year 7 before knowing the accounting policy will change? Required 5: What is the Net Book…
- Chang Company has a December 31 year end. In year 7 it bought a piece of equipment at the start of the year for $575,500 and employed straight line depreciation over 5 years with an estimated residual value of $72,750. At the start of year 8 Chang decides to change the depreciation method to double declining balance (same life and salvage). This is considered a change in accounting policy and you are asked to solve it. Required 4: What is the Net Book Value of the equipment on December 31st of Year 7 before knowing the accounting policy will change? Required 5: What is the Net Book Value of the equipment on December 31st of Year 8? Required 6: If Net Income has to be retroactively restated, by how much Net Income of Year 7 will increase (decrease) when the change in accounting policy becomes effective in year 8?1. On 1 April 20x1, ABC Co. bought a new lorry and made the following payments in relation to it: Costs as per supplier’s list $120,000 Less: Agreed discount 10,000 110,000 Delivery charge 1,000 Installation charge 4,000 Maintenance charge 4,000 An additional component to increase capacity 3,000 Spare parts 3,500 Total 125,500 The lorry is depreciated on a straight-line basis over a four-year life and the estimated residual value $38,000. ABC Co. prepares their accounts on 31 December each year, the company policy is to charge depreciation on a month for month basis. After exactly two years and three months, the lorry is out of…A certain office equipment has a first cost of P 20,000 and a salvage value of P 1,000 at the end of 10 years. Determine its book value at the end of 6 years using declining balance method. 8,600.00 3,311.00 1,657.38 9,280.00 11,400.00 1,000.00
- Question 8 Link Co. purchased machinery that cost $3,000,000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a nine-year life and a $200,000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations.Link's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of $2,333,333. $2,066,667. $0. $2,377,778.unset Unlimited bought a machine for $71,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 159,000. Units actually produced were 42,400 in year 1 and 47,700 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?A manufacturing company receives an invoice on 29 February 20X2 for work done on one of its machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency. The accounts department do not notice and charge the whole amount to maintenance costs. Machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acquisition and disposal. By what amount will the profit for the year to 30 June 20X2 be understated? A $19,125 B $25,500 C $23,375 D $21,250
