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iren2701
2 months ago
9

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 3

1. (Assume amounts are reported in thousands of dollars.) Account Titles Debit Credit Cash $ 52 Accounts Receivable 14 Prepaid Insurance 9 Equipment 108 Accumulated Depreciation $ 0 Accounts Payable 14 Common Stock 104 Retained Earnings 17 Sales Revenue 112 Insurance Expense 0 Salaries and Wages Expense 24 Supplies Expense 40 Totals $ 247 $ 247 Other data not yet recorded at December 31: Insurance expired during the year, $7. Depreciation expense for the year, $6. Salaries and wages payable, $9. Income tax expense, $11. By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded? (Enter your answers in thousands of dollars.)
Business
1 answer:
stepan [3.5K]2 months ago
8 0

Answer:

The overstatement will amount to 33 dollars.

Explanation:

We will evaluate the impact of each adjusting entry on the net income

The effects of adjusting entries:

Expired insurance                   (7) (expense)

Depreciation                           (6) (expense)

Accrued salaries and wages (9) (expense)

Income tax expense             (11) (expense)

           Total impact:               (33)

The adjustments would lower the net income by 33

Hence, omitting these adjustments will result in a net income that is overstated by 33 dollars.

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Answer:

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Explanation:

1. The formula for Return on Investment is defined as Net income from the Investment divided by the investment amount.

The net income mentioned in the question is the after-tax profit of $20,000.

The total amount Amelia invested in Goodies Gift Shop is reflected as owner's equity at $100,000 in the balance sheet for Year 2.

Using the formula: Return on Investment = 20,000/100,000 = 20%

2. We can calculate the projected pre-tax profit as follows: Projected margin minus total overhead = 250K - 200K = $50,000

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Distinguish between medium and higher level education with<br>illustration.​
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Scilla [3833]

Answer:

setup cost = $1.75

setup time = 2.625 min

Explanation:

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solution

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8 0
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