Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Sales 100% Per Unit $ 130 Selling price Variable expenses 78 60 Contribution margin $ 52 40% Fixed expenses are $86,000 per month and the company is selling 2,800 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100 and monthly sales increase by $19,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Should the advertising budget be increased? OYes ONO < Req 1A Reg 18
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Please complete both portions.
![Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Percent of
Per Unit
Sales
$ 130
Selling price
Variable expenses
100%
78
60
Contribution margin
$ 52
40%
Fixed expenses are $86,000 per month and the company is selling 2,800 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by
$9,100 and monthly sales increase by $19,500?
1-b. Should the advertising budget be increased?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Should the advertising budget be increased?
Yes
ONO
< Req 1A
Req 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3459558f-7470-4e5c-a6bf-d5da79f0f9a6%2Fe830640d-cd68-4a06-8738-0a728f9ef4e4%2F0tqhvzt_processed.jpeg&w=3840&q=75)
![Required information
[The following information applies to the questions displayed below.]
Data for Hermann Corporation are shown below:
Percent of
Per Unit
Sales
Selling price
Variable expenses
$ 130
100%
78
60
Contribution margin
$ 52
40%
Fixed expenses are $86,000 per month and the company is selling 2,800 units per month.
Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by
$9,100 and monthly sales increase by $19,500?
1-b. Should the advertising budget be increased?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,100
and monthly sales increase by $19,500? (Round any unit calculations up to the nearest whole unit.)
Net operating income
by
< Reg 1A
Req 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3459558f-7470-4e5c-a6bf-d5da79f0f9a6%2Fe830640d-cd68-4a06-8738-0a728f9ef4e4%2Fjkc4dtn_processed.jpeg&w=3840&q=75)
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