Business, 21.01.2020 04:31 codyclay

During the course of your examination of the financial statements of trojan corporation for the year ended december 31, 2018, you come across several items needing further consideration. currently, net income is $100,000.

a. an insurance policy covering 12 months was purchased on october 1, 2018 for $24,000. the entire amount was debited to prepaid insurance and no adjusting entry was made for this item in 2018.

b. during 2018, the company received a $4,000 cash advance from a customer for services to be performed in 2019. the $4,000 was incorrectly credited to service revenue.

c. there were no supplies listed in the balance sheet under assets. however, you discover that supplies costing $2,750 were on hand at december 31, 2018.

d. trojan borrowed $70,000 from a local bank on september 1, 2018. principal & interest at 9% will be paid on august 31, 2019. no accrual was made for interest in 2018.

using the information in a through d above, determine the proper amount of net income as of december 31, 2018.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 00:50

Cool beans is a locally owned coffee shop that competes with two large coffee chains, planeteuro and frothies. alicia, the owner, hired two students to count the number of customers that entered each of the coffee shops to estimate what percent of people who are interested in coffee are visiting each shop. after a week, the students found the following results: 589 visited cool beans, 839 visited planeteuro, and 1,290 visited frothies. the students were surprised that cool beans had 139 visits on monday which represented 59% of all people who visited one of the three coffee shops on mondays. how many people visited one of the three coffee shops during the week?

Answers: 2

Answer

Business, 22.06.2019 04:00

Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.

Answers: 1

Answer

Business, 22.06.2019 09:00

Aminor has the legal right to repudiate

Answers: 2

Answer

Business, 22.06.2019 14:00

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Answers: 1

Answer

You know the right answer?

During the course of your examination of the financial statements of trojan corporation for the year...

Questions