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2 years ago

Notes payable due in six months are reported as

1 answer:

3 0

A short-term liability is a payment that is due in 12 months or less. Hence notes payable due in six months is reported as a short-term liability.

<h3>What is a liability?</h3>

In the parlance of Accounting and Finance, a Liability is a financial obligation that the company owes to individuals, or organizations with which it has transactional or legal relationship.

Hence, it is correct to indicate that notes payable due in six months is reported as a short-term liability.

Learn more about liability at;
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The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credit

Umnica [9.8K]

Answer:

Blueboy Cheese Corporation

Income Statement

December 31, 2021

Account Title Debits Credits

Sales revenue 680,000

Less Cost of goods sold 408,000

Gross Profit 272,000

less

Salaries expense 108,800

Rent expense 18,000

Depreciation expense 53,000

Interest expense 3,900

Advertising expense 3,600

Un adjusted Profit 84,700

Adjusted Profit 82,900 

Blueboy Cheese Corporation 

Balance Sheet

December 31, 2021

Account Title Debits Credits 

Cash 51,900

Accounts receivable 290,000

Inventory 43,000

Office equipment 308,000

Accounts payable 56,000

Notes payable (due in six months) 39,000

Common stock 400,000

Retained earnings 115,000 + 82,900= 197,900

Total $ 692,900 692,900

Closing Entries

Dec 31 Sales Revenue $680,000 Dr

Income Summary $680,000 Cr

The first closing entry transfers credit balances in revenue ( and gain ) accounts to the income summary accounts.

Dec 31 Income Summary $ 187,300 Dr

Salaries expense 108,800 Cr

Rent expense 18,000 Cr

Depreciation expense 53,000 Cr

Interest expense 3,900 Cr

Advertising expense 3,600 Cr

The second closing entry transfers debit balances in expense ( and loss) to the income summary accounts.

Dec 31 Income Summary $ 82,900

Retained Earnings Accounts $ 82,900

The third entry transfers the balance of income summary account to the owner's capital account or retained earnings account.

5 0

2 years ago

Unit Test

ad-work [718]

The work value that Ramona feels the strongest is that the work with people

Explanation:

Work values are the values that are employed in a work place and there are many kinds of work values that develop the inter personal relationship between peoples

In the given statement she loves to work with the people in the after school program she loves to interact with the people talk with them and gain some personal experience and she feels them the strongest

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2 years ago

Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transacti

Archy [21]

Answer:

(c). Net increase in assets of $35,000 and a net increase in liabilities of $35,000

Explanation:

Accrual basis of accounting attempts to record transactions as and when they arise and not on the basis of when money is actually received or paid. Once a liability is certain, such a liability is provided for immediately.

The journal entry for purchase of Land partly by cash and partly for issuing a notes payable would be:

Land Dr. $55,000

To Cash $20,000

To Notes Payable $35,000

(Being land purchased by payment of $20,000 in cash and a note being issued against the balance amount)

Land and cash are assets whereas Notes Payable is a liability.

So, the effect of the above transaction would be:

Net increase of $35,000 ( $ 55,000 - $ 20,000) as debit in fixed assets account increases their balance whereas cash being a real account, the rule being debit what comes in, credit what goes out. So credit in cash account would reduce the cash balance by $ 20,000.

Notes Payable account which is to be paid in future is a liability which shall increase the liabilities by $ 35,000.

So, the correct answer is (c), Net increase in assets of $35,000 and a net increase in liabilities of $35,000.

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2 years ago

Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relation

stepladder [879]

Answer:

b. False

Explanation:

The above is false because sales people are supposed to build and maintain long term relationships with their customers by listening to and assessing their needs and not teaching their customers. Sales people create a concerted effort towards solving those needs experienced by their customers.

A salesperson represent the image of the company he or she is selling for, hence must be professional and well trained because the company gets profit through his interactions with the customers. This means that before the company gets profit, customers must be satisfied because these salespeople act as critical link between the company and its customers.

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3 years ago

The purpose of the Splish Brothers Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated

Ber [7]

Answer: Please refer to Explanation.

Explanation:

Your question was incomplete so I attached the missing details.

The Carrying Amount of the Division has to be ascertained to move forward as it is needed in calculating the loss on Impairment. It is calculated by subtracting Goodwill from the Net Assets.

= 496 - 214

= $282 million

Calculating the Loss on impairment is done by the following formula,

= Market Price - Carrying Amount of the Division (net of Goodwill) - carrying value of Goodwill

= 335 - 282 - 214

= -$161 million.

Journal Entry

DR Loss on Impairment $161 million

CR Goodwill $161 million

(To record the loss on Impairment)

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2 years ago