Armstad Company has $1,000 in inventory at the end of December, before any adjusting entries. The inventory is 100 widgets at a cost of $10 each. Armstad sells widgets for $8 each. Jones Company has $2,000 in inventory at the end of December, before any adjusting entries. The inventory is 500 gadgets at a cost of $4 each. Jones sells the gadgets for $9 each. Choose true or false for each of the following statements on the December balance shoot. a. On the December balance sheet. Jones will show inventory of dollar 2,000.
b. On the December balance sheet. Jones will show inventory of dollar 1,000.

Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false