Bantam company calculated its net income to be $38,775 based on the unadjusted trial balance. The following adjusting entries were then made for:Salaries and wages owed but not yet paid of $395. Interest earned but not received from investments of $375. Prepaid insurance premiums amounting to $275 have expired. Deferred revenue in the amount of $375 has now been earned. Required:Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
What will be an ideal response?
Unadjusted net income ? Increase in salaries and wages expense + Increase in interest earned ? Increase in insurance expense + Increase in revenues earned
= $38,775 ? $395 + $375 ? $275 + $375 = $38,855.
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Salespeople's reports summarizing each sales call are a source of internal data.
Answer the following statement true (T) or false (F)
On July 1, Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system and the gross method. On July 5, Tracey returns some of the merchandise, which is not defective. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is:
A.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 |
B.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 | |
| Cost of goods sold | 350 | |
| Merchandise inventory | 350 |
C.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 | |
| Merchandise inventory | 350 | |
| Cost of goods sold | 350 |
D.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 |
E.
| Sales returns and allowances | 350 | |
| Accounts receivable | 350 |
Which of the following is a feature of the distributive approach to negotiation?
A. It emphasizes the importance of continued relationship with bargaining partner. B. It takes an adversarial or competitive posture to dividing a fixed amount of resources. C. It requires an open, communicative climate to be effective. D. It generates multiple creative solutions, which create a win-win situation.
Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On October 1, 2019, the firm paid a premium of $5,600 in cash for a 1-year insurance policy.
What will be an ideal response?