Answer:
Debit : Account Payable $1,600
Credit : Discount Received $32
Credit : Cash $1,568
Explanation:
The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.
Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $54,000 per year. The new machine will cost $82,500, and it will have an estimated life of 8 years and no salvage value. The new machine will be depreciated over its 5-year MACRS recovery period; so the applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The applicable corporate tax rate is 40%, and the firm's WACC is 12%. The old machine has been fully depreciated and has no salvage value.
Required:
Should the old riveting machine be replaced by the new one?
Solution :
Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :
Let
A = Year (n)
B = Initial outlay
C = Five-year MACRS depreciation percentage
D = Depreciation with MACRS Method (D)
E = Savings in earnings before depreciation
F = Taxable Income (earnings before depreciation - depreciation
G = Income taxes (Taxable Income *40%)
H = [tex]\text{After-Tax Net}[/tex] cash flow [tex]\text{(Taxable income - taxes + depreciation)}[/tex]
I = PV of [tex]\text{Net cash flow}[/tex] at the rate [tex]12\%[/tex]= [tex]NCF[/tex]/ [tex](1+WACC\%)^n[/tex]
A B C D E F G H I
0 82,500 -82,500 -82,500
1 20% 16500 27000 10500 4200 22800 20357.14
2 32% 26400 27000 600 240 26760 21332.91
3 19% 15675 27000 11325 4530 22470 15993.70
4 12% 9900 27000 17100 6840 20160 12812.04
5 11% 9075 27000 17925 7170 19830 11252.07
6 6% 4950 27000 22050 8820 18180 9210.55
7 0% 0 27000 27000 10800 16200 7328.06
8 0% 0 27000 27000 10800 16200 6542.91
NPV $22,329.39
As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.
the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices
Answer:
1000,$5000maaf kalo salah
Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $70, and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows:
Activity Allocation Base Predetermined Overhead Allocation Rate
Materials handling Number of parts $ 0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.80
What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $18.00
B) $70.00
C) $144.00
D) $196.00
Answer:
Machining= $18
Explanation:
Giving the following information:
Each ceiling fan requires 2.50 hours of machine time to manufacture.
Machining Machine hours 7.20
To calculate the cost of machining per ceiling fan, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machining= 2.5*7.2
Machining= $18
Desks by Daisy sells a student desk for $100 per unit. The variable cost per desk is $40 and Daisy's fixed costs of producing the desks equals $15,000 per month. Daisy needs to sell _______ desks per month in order to break-even.
Answer:
250
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$15,000 / (100 - 40)
$15,000 / 60
250
Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a business's operations. Are statements prepared for periods of less than one year. Require the use of the perpetual method for inventories. Cannot be prepared if the company follows the conservatism principle.
Answer:
Are statements prepared for periods of less than one year.
Explanation:
Interim Financial Statements
This is simply known as a financial statements prepared for a timeframe (period) that is part of the entity's annual fiscal period. discontinued operations and extraordinary items that occur at midyear initially are often reported in net income and open up in the notes to interim financial statements.The fundamental principle guarding interim reporting is that
interim reports must be considered as a part of the integral of the annual reporting period.
An interim statement as a financial report timeframe is often less than one year. It often shows an organisation's performance before the end of normal full-year financial reporting cycles and often, this statements do not need to be audited.
Exercise 8-2 Recording costs of assets LO C1 Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot the and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Answer:Please see answers in explanation column
Explanation:
Given that,
Purchase price of land = $390,000
tear down cost old building = $33,500
Costs to fill and level lot = $47,000
Total cost of land = Purchase price of land +tear down cost on old building + Costs to fill and level lot
=$390,000 + $33,500+ $47,000
= $470,500
Therefore, the journal entry is as follows:
To record the costs of plant assets
Account titles and explanation Debit Credit
Land $470,500
Land improvements $87,800
Building/construction costs $1,452,200
To cash $2,010,500
write the work of an architectural engineer .
Answer:
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Answer:
Architectural engineers apply science and technology to the real world by designing buildings that enhance our standard of living and improve our quality of life. They do this by combining building systems – structural, electrical, mechanical, lighting, acoustics and fire protection - into an integrated whole. These creative problem solvers are constantly facing the challenges of the future like sustainable building materials and green energy sources. Architectural engineers are trained to use the latest technologies – like computer based building design and analysis software (Revit, eQUEST, RISA-3D, etc), building information modeling (BIM), and advanced sensors & controls – to design, build, and operate the various systems within a building.
Given the following information, determine the cost of goods sold at December 31 using the LIFO periodic inventory method:
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
a. $51.75
b. $94.00
c. $50.75
d. $83.22
e. $41.30
Answer:
COGS= $297
Explanation:
Giving the following information:
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
First, we need to calculate the number of units sold:
Number of units sold= 12 + 18= 30
Now, under the LIFO (last-in, first-out) method, the cost of goods sold is calculated using the cost of the lasts units incorporated into inventory:
COGS= 20*10.15 + 10*9.4
COGS= $297
A company borrowed $4,000 from the bank at an interest rate of 9%. By the end of the accounting period, the loan had been outstanding for 30 days. Demonstrate the required adjusting entry by choosing the correct statement below.
Debit Interest payable for $30.
Credit Unearned revenues for $30.
Credit Interest expense for $30.
Two leading home appliance companies, Globex Inc. and Pug Tech, are in competition for market share. In their quest for exciting new products, Globex employs an open innovation model, while Pug Tech pursues a closed innovation model. Which of the following statements is most likely true?
a. Globex has a greater chance of capturing market share.
b. Pug Tech has a superior absorptive capacity.
c. Pug Tech will protect its intellectual property with patents and trade secrets.
d. Globex is most concerned with securing first-mover advantages.
Answer: c. Pug Tech will protect its intellectual property with patents and trade secrets.
Explanation:
A closed innovation model means that the company develops the product internally instead of through collaboration with external sources.
Pug Tech will therefore produce new products internally. As a result, they will be able to protect these products from being copied by others through patents and trade secrets because the law will recognize that they have exclusive rights to the new technology seeing as they came up with it.
If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is: (Note: EOM indicates the last day of each month.)
Answer:
EOM depreciation expense $100
accumulated depreciation $100
Explanation:
Depreciation is a method used in expensing the cost of an asset.
Yearly Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($3750 - $150) / 3 = $1200
Monthly depreciation = yearly depreciation / 12
1200 /12 = 100
Accumulated depreciation is sum of depreciation expense
What is the process of managing costs
Answer:
Cost management is the process of estimating, allocating, and controlling project costs. The cost management process allows a business to predict future expenses to reduce the chances of budget overrun. Projected costs are calculated during the planning phase of a project and must be approved before work begins.
Explanation:
I know the answer by heart
You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.25 percent. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage.
Answer:
$545.74
Explanation:
The actual mortgage is the purchase price minus the down payment, based on the mortgage amount, the monthly payment can be determined using a financial calculator as shown below:
N=360(number of monthly payments in 30 years=30*12=360)
I/Y=7.25/12(monthly interest rate without the "%" sign)
PV=-80000($100,000-20%*$100,000=$80000)
FV=0(after all required payments , the balance of the mortgage balance would be zero)
CPT
PMT=$545.74
On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $43,495,895. The company uses the interest method.
a. Journalize the entries to record the following:
1. sale of the bonds.
2. First semiannual interest payment, including amortization of discount.
3. Second semiannual interest payment, including a of discount.
b. Compute the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $43,495, 895 rather than for the face amount of $50,000,000.
Answer:
Ebert Company
Journal Entries:
1) Debit Cash $43,495,895
Debit Bonds Discounts $6,504,105
Credit Bonds Payable $50,000,000
To record the sale of the bonds at a discount.
2) First semiannual interest payment:
Debit Interest Expense $1,957,315
Credit Amortization $207,315
Credit Cash $1,750,000
To record the first semiannual interest payment.
3) Second semiannual interest payment:
Debit Interest Expense $1,966,644
Credit Amortization $216,644
Credit Cash $1,750,000
To record the second semiannual interest payment.
b. Bond interest for the first year = $3,923,959 ($1,957,315 + $1,966,644)
c. The company issued the bonds at a discount at a coupon rate of 7%, which is less than the market interest rate of the bonds (9%).
Explanation:
a) Data and Calculations:
Face value of bonds = $50,000,000
Price received = $43,495,895
Discount = $6,504,105
Coupon interest rate = 7%
Interest payment = semiannually
Maturity period = 10 years
Market (effective) interest rate = 9%
1) Cash $43,495,895 Bonds Discounts $6,504,105 Bonds Payable $50,000,000
2) First semiannual interest payment:
Interest Expense $1,957,315 Amortization $207,315 Cash $1,750,000
Cash payment = $1,750,000 ($50,000,000 * 3.5%)
Interest expense = 1,957,315 ($43,495,895 * 4.5%)
Amortization = $207,315
Fair value of bonds = $43,703,210 ($43,495,895 + $207,315)
3) Second semiannual interest payment:
Interest Expense $1,966,644 Amortization $216,644 Cash $1,750,000
Cash payment = $1,750,000 ($50,000,000 * 3.5%)
Interest expense = 1,966,644 ($43,703,210 * 4.5%)
Amortization = $216,644
what is the different between consumer and customer?
Answer:
The customer is one who buys product produce while the consumer is one who takes benefit or uses the product.
An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of:_______.
a. Accounting profits.
b. Economic profits.
Answer:
a. Accounting profits.
Account profit = Revenue - explicit cost
= 160,000 - 55,000
= $105,000
Present value of $105,000 per year for 3 years is:
= 105,000 * Present value interest factor of an Annuity, 3 years, 5%
= 105,000 * 2.7232
= $285,936
b. Economic profit
Economic profit = Revenue - explicit cost - implicit cost
= 160,000 - 55,000 - 70,000
= $35,000
Present value of $35,000 per year for 3 years:
= 35,000 * Present value interest factor of an Annuity, 3 years, 5%
= 35,000 * 2.7232
= $95,312
Note: The profits were treated as annuities as they were constant.
Supply is more elastic over long periods than over short periods because:_____.
a. producers can make more adjustments in the long run than in the short run.
b. consumers can make fewer adjustments in the long run than in the short run.
c. producers can make fewer adjustments in the long run than in the short run.
d. consumers can make more adjustments in the long run than in the short run.
Answer:
A
Explanation:
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.
Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Supply is more elastic in the long run than in the short run because the producer can make adjustments in the long run
Positive Messages and the Writing Process
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages. Match the message content area with the correct types of messages.
1. Sales pitches, requests for favors
2. Replies, goodwill messages, direct claims
3. Bad news, refusals
a. persuasive
b. positive
c. negative
Consider the scenario about a positive message:
Gilberto is composing an e-mail that explains the terms of a recent business transaction. He has determined the purpose of the message, analyzed his audience, and determined its reactions.
According to the 3-x-3 writing process, what actions make up his next steps?
a. Make a list of points to cover.
b. Plan for feedback.
c. Check for mechanical problems.
d. Collect information.
e. Compose the first draft.
While most business communication is now done electronically, there remain situations in which a business letter is most appropriate.
Messages delivered through business letters are less likely to reach_____than messages delivered through_____. Thus, business letters are more_____.
Answer: See explanation
Explanation:
1a. Sales pitches, requests for favors: In this case, persuasive message should be used to convince the receiver to agree with the sender's viewpoint.
b. Replies, goodwill messages, direct claims: The positive message should be used as the main idea can be communicated directly before any other supporting information are provided.
c. Bad news, refusals: This scenario involves a negative messages and should therefore be written in an indirect manner. It should also be noted that a supporting message us given before the main message us written.
2. According to the 3-x-3 writing process, the actions that make up Gilberto next steps include
a. Make a list of points to cover.
d. Collect information.
e. Compose the first draft.
3. Messages delivered through business letters are less likely to reach (unintended recipients) than messages delivered through (email). Thus, business letters are more (confidential).
The cost of equity is ________. the interest associated with debt the rate of return required by investors to incentivize them to invest in a company the weighted average cost of capital equal to the amount of asset turnover
Answer:
If an = 3n - 2 , find a2
Explanation:
If an = 3n - 2 , find a2If an = 3n - 2 , find a2
Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed the required return. What happens to the market value
Answer:
The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.
Explanation:
Thus, in the equilibrium, of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price. The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.Question 2 Which of the following are wholesale and which are retail? (a)Large-scale deposits made by firms at negotiated rates of interest. .............................retail / wholesale (c)Deposits in savings accounts in high street banks. ......................................................retail / wholesale (b)Loans made by high street banks at published ratesof interest. ..................................retail / wholesale (d)Deposits in savings accounts in building societies .......................................................retail / wholesale (e)Large-scale loans to industry syndicated through several banks. ................................retail / wholesale
Answer:
Wholesale banking refers to banking services sold to large clients, such as other banks, other financial institutions, government agencies, large corporations, and real estate developers. It is the opposite of retail banking, which focuses on individual clients and small businesses. Wholesale banking services include currency conversion, working capital financing, large trade transactions, mergers and acquisitions, consultancy, and underwriting, among other services
If management adopts Ryan's suggestion of reducing Frozen Fun Ice Cream's charitable donations until profits grow, the company will essentially reduce its
Answer:
Corporate philanthropy
Explanation:
In simple words, Corporate philanthropy can be understood as the act of a business donating to nonprofit organisations through contributions, volunteers, sponsorship, as well as other means to assist them achieve their goals. The issue is that not enough organisations understand how to benefit from corporate generosity.
Thus, from the above we can conclude that Ryan's suggestion will reduce the company's Corporate philanthropy.
All the individuals that buy the product for their personal consumption is called………
Answer:
A consumer
Explanation:
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate the December 31 adjusting entry by choosing the correct statement below.
a. Debit Service revenue for $400.
b. Debit Unearned revenues for $400.
c. Debit Unearned revenues for $600.
d. Credit Unearned revenues for $400.
Answer:
b. Debit Unearned revenues for $400.
Explanation:
When money is received in advance for a service that is yet to be rendered, the money is accounted for as a liability called deferred or unearned income.
The entries are
Dr Cash
Cr Deferred revenue
when the service is rendered, revenue is said to be earned with the following entries passed
Dr Deferred revenue
Cr Revenue
Hence when $1,000 for services was received on December 1 and was recorded as a liability
Dr Cash $1,000
Cr Deferred revenue $1,000
when $400 had been earned
Dr Deferred revenue $400
Cr Revenue $400
Option b is right
b. Debit Unearned revenues for $400.
All of the following are examples of batch-level activities EXCEPT: a. clerical activity associated with processing purchase orders to produce an order for a standard product. b. purchase order processing. c. setting up equipment. d. worker recreational facilities.
Answer:
d. worker recreational facilities.
Explanation:
The batch-level activities are the expenses that are incurred when the new bathes could be processed. It is only available at bulk not an individual
Since worker recreational facilities are related to the company and it is not related with the batch as it is related how we can motivate the employees
Therefore the option d is correct
what is GDP of a country
Answer:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Explanation:
GDP is an acronym for Gross Domestic Products (GDP) and it can be defined as a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
On a related note, Gross Domestic Products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are;
I. Consumption (C).
II. Investment (I).
III. Government purchases (G).
IV. Net exports (N).
In conclusion, GDP is a measure of the total amount of finished goods and services produced by a country.
The Fisher Effect equation can be used to determine the real interest rate. Use this equation to determine the answer to the question. If the nominal interest rate is 0.1100.110 , and the inflation rate is 0.0250.025 , what is the real interest rate
Answer:
0.075%
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
Fisher effect equation : ( 1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
(1 + 0.001) = (1 + real interest rate) x (1 + 0.00025)
1.001 = (1 + real interest rate) x (1.00025)
1.001 / (1.00025) = (1 + real interest rate)
1.00075 = (1 + real interest rate)
real interest rate = 1.00075 - 1
= 0.00075 = 0.075%
What is happening with Unemployment of Indonesia over the past 2 or 3 years?
Answer:
The unemployment rate in Indonesia increased to 6.26 percent in the first quarter 2021 from 4.94 percent in the same quarter a year earlier, amid the economic downturn caused by the coronavirus crisis. The number of unemployed persons surged by 1.82 million to 8.75 million. Meanwhile, the number of employed declined by 2.23 million to 131.06 million, mostly in the transportation and warehouse (-0.30 percent) while that in accommodation and food services reported the largest increase (0.34 percent). Meantime, the labor force participation rate declined to 68.08 percent in the first quarter from 69.21 percent in the prior year.
Explanation:
give 5 star
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book value of the equipment was $30 million and its tax basis was $20 million. At December 31, 2021, the book value of the equipment was $28 million and its tax basis was $12 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $50 million.
Required:
a. Prepare the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
b. What is Ameenâs 2021 net income?
Answer:
1.31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable $11.00
Cr To Deferred tax liability $1.50
2.$37.50 million
Explanation:
1. Preparation of the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
Depreciation as per books for 2021 = $30 - $28 Depreciation as per books for 2021= $2 million
Depreciation as per tax for 2021 = $20 - $12
Depreciation as per tax for 2021 = $8 million
Taxable income = $50 + $2 - $8
Taxable income = $44 million
JOURNAL ENTRIES - Ameen Company (In million)
31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable ($44*25%) $11.00
Cr To Deferred tax liability ($6*25%) $1.50
(To record income tax expense)
2. Calculation to determine What is Ameenâs 2021 net income?
Ameen's 2021 net income = $50 - $12.50
Ameen's 2021 net income = $37.50 million
Therefore Ameen's 2021 net income is $37.50 million
The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
What do you mean by Pre-tax accounting income?Pre-tax revenue is the company's income left over after all operating costs, including interest and depreciation, have been deducted from sales or income, but before deducted income tax.
Pre-tax profits provide insight into the financial performance of a company prior to tax impact.
Calculation of taxable income for 2021:
a)
[tex]\rm\,Taxable \,Income = \\Pre-Tax \; Accounting \; Income + (Excess \;of Book Depreciation \;over \; tax \; depreciation)\\\\\rm\,Taxable \,Income = 50 + (2 - 8)\\\\\rm\,Taxable \,Income = \$44 \;Million\\\\Income\,tax\, Payable = 44 \times 25\%\\\\Income\,tax\, Payable = \$11 Million[/tex]
Journal entry to record Ameena's 2021 income taxes is attached below.
b) Ameena's net income will be :
[tex]\rm\,Ameen's \; 2021 \;net \; income = \$50 - \$12.50\\\Ameen's \; 2021 \;net \; income = $37.50 \rm\,million[/tex]
Hence, The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
To learn more about pre-tax accounting income, refer:
https://brainly.com/question/26891310
During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of
the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be
reported in the Supplies account in the Adjusted Trial Balance section of the worksheet
prepared on December 31.
Answer:
$500
Explanation:
Since adjusted trial balance is often prepared at the end of an accounting period in which based on the information given the supplies in inventory is on the last day of the accounting period in which only the amount of $500 of supplies was remaining in the supply cabinet, therefore the amount to be
reported in the SUPPLIES ACCOUNT in the Adjusted Trial Balance section of the worksheet
prepared on December 31 will be $500 of supplies remaining in the supply cabinet.
