Hot Bread Bakery reported Net sales revenue of $44,000 and cost of goods sold of $33,000. Compute

Question:

Hot Bread Bakery reported Net sales revenue of $44,000 and cost of goods sold of $33,000. Compute Hot Bread's correct gross profit if the company made either of the following independent accounting errors. Show your work.

a. Ending merchandise inventory is overstated by $8,000.

b. Ending merchandise inventory is understated by $8,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9780134486840

6th Edition

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

See More Books

Question Posted: Oct 27, 2017 03:43 AM

See More Questions

Grandma Kate Bakery reported sales revenue of $52,000 and cost of goods sold of $22,000. Requirement 1. Compute Grandma Kates correct gross profit if the company made either of the following...
Grandma Kates Bakery reported sales revenue of $ 52,000 and cost of goods sold of $ 22,000. Compute Grandma Kates correct gross profit if the company made either of the following independent...
La Castle Bakery reported sales revenue of $41,000 and cost of goods sold of $21,000. Compute La Castles correct gross profit if the company made either of the following independent accounting...
Trent Marcus has 3 major suppliers: Parker is in the same business as Trent and offers a 5 % trade disc Scott offers a trade disc of 6 % on amounts in excess of $ 200 ( trade disc does not apply to...
The magnitude E of an electric field depends on the radial distance r according to E = A/r4, where A is a constant with the unit volt-cubic meter. As a multiple of A, what is the magnitude of the...
We are given three new urns each containing seven red, five green, and three white balls, and two old urns each containing five red, three green, and seven white balls. The urns are identical except...
If the RANS equation (17.5) is subtracted from the unaveraged $\mathrm{N}-\mathrm{S}$ equation (17.1), we obtain the following equation for the perturbation velocity:...
Describe two reports provided by independent auditors in the annual report to shareholders with brief explanation.
Placid Lake Corporation acquired 8 0 percent of the outstanding voting stock of Scenic, Incorporated, on January 1 , 2 0 2 3 , when Scenic had a net book value of $ 4 8 0 , 0 0 0 . Any excess fair...
Based on the EER diagram constructed for Problem and Exercise 3-34, develop a sample definition for each entity type, attribute, and relationship in the diagram. Consultant There are two types of...
Nutriset Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended March 31, 2019, Nutriset's preliminary income statement,...
Nature Foods Grocery reported the following comparative income statements for the years ended June 30, 2019 and 2018: During 2019, Nature Foods Grocery discovered that ending 2018 merchandise...
Simplify each expression. Assume that all variables are positive when they appear. 4 16
How can you assess whether your analytical infrastructure is nearing capacity?
When should you consider fitting these advanced models instead of the more traditional model options (for example, regression)?
How can you ensure that your model is not fitting noise?
Which analytics software package might you select for your organization? Why?
Explain the concept of cost of goods sold?
Starboard, Inc., has a board of directors consisting of three members, Ellsworth, Green, and Morino. The corporation has approximately five hundred shareholders. At a regular meeting of the board,...
According to a New York Times columnist, The estate tax affects a surprisingly small number of people. In 2003, . . . just 1.25 percent of all deaths resulted in taxable estates, with most of them...
What are two common entry-level accounting software systems used by small businesses?
What are the controls needed to secure the petty cash fund?
Define property, plant, and equipment. Provide some examples?
If you weigh your portfolio in 80% risky and 20% risk-free t bills. The optimal risky portfolio consists of 40% in bonds and 60% in ETFs. How much will you have invested in t-bills, bonds, and etfs?
b. A 25-year mortgage loan of $184,000 at a 10 percent compound annual interest rate with equal installment payments at the end of each year.
What are Cloud-based Services? How does this differ to the common virtualization model?

Hot Bread Bakery reported Net sales revenue of $44,000 and cost of goods sold of $33,000. Compute

Question:

Step by Step Answer:

a Correct gross profit is 3000 Calculations As Reported Sales Revenue 44000 Les...View the full answer

Horngrens Financial And Managerial Accounting The Financial Chapters

Students also viewed these Financial Accounting questions