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b} The Company reected total salaries of $28,000 for the last two weeks in December as selling, general and administrative expenses. ?0% of the salaries

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b} The Company reected total salaries of $28,000 for the last two weeks in December as selling, general and administrative expenses. ?0% of the salaries for this period related to workers at the production facility with the remaining 30% covering administrative and sales staff. All of the inventory in production during the last two weeks in December was still in the production line at December 31, 2006. If the salaries costs had been properly recorded, what would be correct amounts for the following line items? Current assets? 'WlP inventory? Cost of goods sold? Net income? Total shareholders\" equity? c) The Company neglected to record sales commissions earned by sales staff during the fourth quarter of the current year (i.e., October-December). The company's sales commission agreements call for a commission of 3% of the gross prot on each sale to be paid to sales staff on the rst day of the quarter following the quarter in which the sale occurs. Sales totaled $640,000 and cost of sales totaled $336,000 for the fourth quarter. Sales revenues and cost of sales were properly recorded. Ifthe company had properly reected this activity during 2006, what would be the correct amounts for the following items? Selling, general and administrative expenses? Total shareholders equity? Current liabilities? Retained Earnings

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