Damon Davis was doing the paperwork for Drano Plumbing. He estimated a net profit of $50,000. He discovered that the debit column on the balance sheet totaled $400,000 and the credit column, $300,000, when he added up the columns. What was the difference in the results' most likely cause? What should he do if this wasn't the root of the problem? How can he find out where it came from?
Q: Rich Man Realty Richard Manuel decided to open a business named Rich Man Realty. In September 2015…
A: Financial Statement : Financial statements are written documents that describe the operations and…
Q: Bledsoe Corporation has provided the following data for the month of November: Beginning $ 25,200 $…
A: The Cost of Goods Manufactured is the total manufacturing costs of goods that are finished during a…
Q: Question Content Area Financial Statements The amounts of the assets and liabilities of Wilderness…
A: The financial statements of the business are prepared using the adjusted trial balance of the…
Q: Questions 4 and 5 are based on the following: For several years, Peejay and Joshua have been…
A: According to the given question, we are required to compute the required figures. Partnership: The…
Q: E 32-6- Preparation of statement of profit or loss The bookkeeper of Raylen Corporation presented…
A: Following are the mistakes committed by the accountant 1) Dividend amount has been deducted from the…
Q: Disc Golf manufacturer, Throw-it-Far Inc is working on completing their accounting information for…
A: calculation of cost of goods manufactured are as follows
Q: Critically discuss how organisations develop cumulative budgeted costs.
A: Organizations allocate resources to many departments and projects to create cumulative budgeted…
Q: Question 15-(C) EXCITE Pte Ltd manufactures game consoles at 500 units a month. Demand is 250 units…
A: Optimal Order Size :— It is the number of units that must be order at a time for minimum cost. It is…
Q: Which of the following accounts would not appear on the income statement of a lessee in connection…
A: A finance lease indicates the agreement between the lessor and lessee where the former provide the…
Q: Discussion Questions to answer for your initial post:
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Dollar Amount Work in process, January 1, 3,400 units, 75% completed $32,000 Materials added during…
A: Cost of production report refers to a formal document which reflect the entire process of the units…
Q: 16. Hat Co. manufactures a western-style hat that sells for 10 per unit. This is its sole product…
A: Introduction:- Break even point, means where no profit or loss. Contribution margin per unit means…
Q: 10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A:…
A: Given information, Share of Salary to A = 40,000 Bonus to A: Remaining cash distributable after…
Q: Please calculate: debt ratio and times interest earned ratio
A: Debt Ratio is a solvency ratio which represent the proportion of Debt into the capital structure of…
Q: D ue to erratic sales of its sole product, a high capacity battery for laptop computers, Salcedo…
A: Variable Cost is that cost which will change with change in sales qty while fixed cost is not change…
Q: ction list al entry worksheet 2 3 the year-end adjusting entry for the securities portfolio as of…
A: Journal entries are those entries that involve the day-to-day transactions of a company which are…
Q: Blum Services has the following unadjusted balances at year-end. Cash $12,900 Prepaid insurance…
A: The unadjusted trial balance seems to be a trial balance that is unadjusted and produced before…
Q: a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000…
A: Balance sheet is one of the financial statements which is prepared by an entity to depict its…
Q: Nana Company had a margin of safety ratio of 20%, variable costs of 60% of sales, fixed costs of…
A: Fixed cost refers to those cost which doesn't changes with the changing level of production /sales…
Q: A company assigns overhead cost to completed jobs on the basis of 120% of direct labor cost. The job…
A: Manufacturing Cost :— Manufacturing cost is the sum of costs of all resources consumed in the…
Q: 12. The partnership agreement of Walter, Xylo, and Yamete provides for the following profit-sharing…
A: Share of Profit in Partnership The profits and losses of the business are divided among the partners…
Q: 30,000. Use Exhibit 16-6. Gross profit from inventory sales of $310,000 (no book–tax differences).…
A: Taxable income refers to the concept of determining the desired sum of tax an entity needs to pay to…
Q: A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of…
A: Here, Fixed costs = P150,000 Variable cost ratio = 60% Margin of safety ratio = 25% Find: Amount of…
Q: The purchase price for an acquisition is $5,000,000. The buyer pays $15,000 for lender required…
A: Capital expenditure refer to that expenditure which is incurred by a business for its long term…
Q: Accounting Bosco Corp. uses a process costing system. Beginning inventory for January consisted…
A: Introduction: Using a process costing technique, costs are compounded when numerous comparable goods…
Q: On August 1, 2022, Nelson Corp. sold inventory in exchange for a 2-year non-interest-bearing note…
A: On August 1, 2022, Nelson Corp. sold inventory in exchange for a 2-year non-interest-bearing note…
Q: a. If Canace Company, with a break-even point at $461,500 of sales, has actual sales of $710,000,…
A: Margin of safety: A point after which profit will happen in the multiple of contribution margin…
Q: What formula is used to calculate fixed cost and variable cost per unit? Explain with an example.
A: Variable Cost :— It is the cost that changes with change in units. It is constant in per unit. It…
Q: Effect of Stock Split Willey's Grill & Restaurant Corporation wholesales ovens and ranges to…
A: The stock split refers to dividing the existing common shares into more shares. The stock split…
Q: the primary term of an oil and gas lease agreement?
A: Net revenue refers to the total sum value of money gained by an entity after deducting all the…
Q: The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the…
A: Variable Cost :— Variable Cost are those cost which is varry on per unit basis. variable cost is a…
Q: At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital…
A: Marketable securities refers to the type of investments which can be easily trade off such as buy or…
Q: On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and…
A: Solution Partnership is an agreement between two or more persons with the aim to share profit or…
Q: Question 1b A company is evaluating a project that required the following types of material.…
A:
Q: If C CORP. had 3,518,000 shares of common stock outstanding when it paid dividends last year, how…
A: Dividend is the amount of income earned by a corporate entity that is distributed to its…
Q: A production department reports the following conversion costs. Equivalent units of production for…
A: Lets understand the basics. Equivalent cost per unit is needed to calcualte how much amount should…
Q: For consolidation eliminating entry (O), what amount will be reported as expense for identifiable…
A: Intangible assets are the assets that cannot be touched or seen . They are recorded on the debit…
Q: Acquisition Cost On January 1, 2017, Zircon Enterprises purchased a piece of equipment with a list…
A: Acquisition cost: The acquisition cost of a given asset, machinery, tool, or equipment is the sum of…
Q: Valdosta Company is working on its costing information for January. Using normal costing, they use…
A: Prime Cost: Prime cost includes direct expenses related to the Manufacturing of goods. Major…
Q: Net Sales? Total Manufacturing Costs? Cost of Goods Manufactured?
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: According to the historical cost system, what is the objective of accounting and the role of profit?…
A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…
Q: Explain the arguments for and against using historical cost as a measurement base.
A: Historical Cost Accounting is a method of accounting in which the assets in the balance sheet are…
Q: Problem The Molding Department is the second department in Paxton Company production process. The…
A: Production Cost Report :— It is the report that shows the summary of equivalent units, cost…
Q: 6. What is the net income / (net loss) of the partnership for the year ended December 31, 2019? A.…
A: Capital balance at the end of the year to a partner is the balance which has been in the account of…
Q: On June 1, 2015, DAVE and MAR are combining their separate business to form a partnership. Cash and…
A: Firstly there is a mistake in question , The fair value of inventory of Dave is $45,000, not…
Q: making a mark-to-market control account. and at the end of year. adjustment making a mark-to-market…
A: Unrealised gain refers to the concept when there is an increase in the current value of an asset…
Q: Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies…
A: Unadjusted trial balance refers to the form of trial balance that lists all the accounts which will…
Q: E 32-5- Preparation of statement of profit or loss The following data were taken from the Company…
A: Solution Cost of good sold represents all costs which are used in producing the goods that a…
Q: 15. Dynamic Company had sales of P1,500,000, fixed costs of P400,000 and variable costs of P900,000.…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: On January 1, 20X2, Plend Corporation acquired all of Stork Corporation's assets and liabilities by…
A: The question is based on the concept of Financial Accounting. When the net asset assets are acquired…
Damon Davis was doing the paperwork for Drano Plumbing. He estimated a net profit of $50,000. He discovered that the debit column on the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Putting the final touches on the paperwork for Drano Plumbing was Damon Davis. The net profit, he thought, would be $50,000. He added up the columns on the balance sheet and discovered that the credit column was worth $30,000 and the debit column was $400,000, respectively. What was the most probable cause of the inconsistent results? What should he do to determine the issue's origin if this wasn't the cause of the issue?Damon Davis was working on a spreadsheet for the Drano Plumbing Company. He calculated that the net profit would be $50,000. He totaled the columns on the Balance Sheet as follows: debit, $400,000; and credit, $300,000. What was the most likely cause of this disparity? If this was not the case, how should he go about determining the cause of the error?Damon Davis was concluding Drano Plumbing's paperwork. He predicted a $50,000 net profit. When he tallied up the columns on the Balance Sheet, he found that the debit column amounted to $400,000 and the credit column amounted to $300,000. What was the most likely source of the result discrepancy? If this was not the source of the problem, how might he continue to identify its origin?
- Damon Davis was putting the finishing touches on the paperwork for Drano Plumbing at the time of this writing. A net profit of $50,000, he predicted, would be generated. Upon tally of the balance sheet's columns, it became clear to him how much money was in the negative column ($400,000) and how much money was in the credit column ($300,000). What was the most likely cause of the mismatch in results, according to you? If this was not the source of the problem, what should he do next in order to determine the source of the issue?Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits from “rent expense” to “prepaid rent” on several entries. Later, Hugh got his bonus, and the deviations were never discovered. Requirements How did the change in the journal entries affect the net income of the company at year-end? How did the change in the journal entries affect the net income of the company at year-end?Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle. He boasted to Hugh he knew of some accounting tricks to increase the company’s income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits form “rent expense” to “prepaid rent” on several entries. Later Hugh got his bonus, and the deviations were never discovered. How did the change in the journal entries affect the net income of the company at year-end? Who gained and who lost as a result of these actions?
- I have a big project due and I am unsure if I am doing this correctly. I am attaching the spreadsheet and accounting data. Can you please check over it for me and let me know if anything is calculated wrong? Accounting Data Appendix The following events occurred in October: October 1: The business owner used $25,000 from their personal savings account to buy common stock in their company. October 1: Purchased $8,500 worth of baking supplies from vendor, on account. October 3: The company borrowed $10,000 in cash, in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity. October 7: Entered into a lease agreement for bakery space. The agreement is for one year. The rent is $1,500 per month; the last month’s rent payment of $1,500 is required at the time of the lease agreement. The payment was made in cash. Lease period is effective October 1 of this year through September 30 of the next. October 10: Paid $375 to the county for a…Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. fill in the blanks by rearranging the items that are wrong: Balance Sheet Payables $ 35 Inventories $50 Less accumulated depreciation 120 Receivables 35 Total current assets ___?____ Total current liabilities __?____ Long-term debt $350…Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. fill in the blanks by rearranging the items that are wrong: Balance Sheet Payables $ 35 Inventories $50 Less accumulated depreciation 120 Receivables 35 Total current assets ___?____ Total current liabilities __?____ Long-term debt $350…
- At a recent luncheon, you were seated next to Mr. Fogle, the president of a local company that manufactures food processors. He heard that you were in a financial accounting class and asked:“Why is it that I’m forced to record depreciation expense on my property when I could sell it for more than I originally paid? I thought that the purpose of the balance sheet is to reflect the value of my business and that the purpose of the income statement is to report the net change in value or wealth of a company. It just doesn’t make sense to penalize my profits when the building hasn’t lost any value.”At the conclusion of the luncheon, you promised to send him a short explanation of the rationale for current depreciation practices.Required:Prepare a memo to Mr. Fogle. Explain the accounting concept of depreciation and contrast this with the dictionary definition of depreciation.Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEOs advice impact the companys accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the companys current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent from the opinion of a supervisor. Note that the challenge of the assignment is to keep your integrity intact, while also keeping your job, if possible.Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid the 1,255 bill. Your client is on the accrual basis of accounting. He does not want the refrigeration repair expense on the books as of the end of the month because he wants his profits to look good for the bank. Is your client behaving ethically by suggesting that the refrigeration repair expense not be booked until the 1,255 is paid? Are you behaving ethically if you agree to the clients request? What principle is involved here?
