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2 years ago

Pina Colada Company has the following balances in selected accounts on December 31, 2022.

1 answer:

8 0

The appropriate journal entries to record the transactions are: Debit Interest expense $528; Credit Interest payable $528.

<h3>Journal entries</h3>

Pina Colada Company journal entries

Debit Interest expense $528

Credit Interest payable $528

($13,200×12%×4/12)

Debit Depreciation expenses $1,320

Credit Accumulated depreciation equipment $1,320

Debit Supplies expenses $2,044

Credit Supplies 2044

(3234-1,188)

Debit Insurance expenses $1,617

Credit Prepaid insurance $1,617

($2,772×7/12)

Debit Unearned service revenue $9,900

Credit Service revenue $9,900

($39,600×1/4)

Debit Accounts Receivable $5,544

Credit Service Revenue $5,544

Debit Salaries and wages expenses $7,128

Cred it Salaries and wages pay $7,128

($11,880×3/5)

Therefore the appropriate journal entries to record the transactions are: Debit Interest expense $528; Credit Interest payable $528.

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The financial statements of the imagine company report net sales of $1,000,000 and accounts receivable of $700,000 and $300,000

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The answer is 2 times.

Accounts recievable turnover ratio = net sales / average accounts recievable

=1,000,000 ÷ (700,000+300,000 ÷ 2)

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3 years ago

The normal balances of sales, sales discounts, and sales returns and allowances are ________. debit, credit, and credit, respect

Y_Kistochka [10]

<h3><u>Answer;</u></h3>

credit, debit, and debit, respectively

<h3><u>Explanation</u>;</h3>

Normal balance of sales; Credit

Normal balance of sales discount; Debit

Normal balance of sale returns and allowances; Debit

A normal balance is the expectation that a particular type of account will have either a debit or a credit balance.
The normal balance of sales is credit.
The sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance.
The account Sales Discounts is referred to as a contra-revenue account. Therefore; its is debit balance.

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3 years ago

Small business loans are easier to get if

djverab [1.8K]

The answer is A. The owner has a lot of his own money invested in the business.

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3 years ago

The following information pertains to Guy’s Gear Company: Sales $ 75,000 Expenses: Cost of Goods Sold $ 47,500 Depreciation Expe

iren [92.7K]

Answer:

Cash flow provided from operating activities 12,700

Explanation:

Net Income: 10,500

Depreciation expense 5,500 a

Adjusted income 16,000

Change in working capital

↓Account Receivable 3,500 b

↑Inventory (7,500) c

↑Salaries payable 700 d

Total Change in working capital (3,300)

Cash flow provided from operating activities 12,700

<u>Notes:</u>

a The depreciation is a non-monetary concept it has no impact in cash. It is removed.

b The decrease the AR means cash was collected, therefore the cash increase

c The increase in inventory represents cash being used to purchase that inventory. Cash decreased

d the salaries payable represent the delay of cash disbursement, it increases cash.

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3 years ago

According to GAAP, the amount of bad debt expense can be estimated by: A. Only the percent of sales method. B. Only the percent

yarga [219]

Answer:

E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.

Explanation:

The bad debt is an expense that is to be shown on the debit side of the income statement. It refers to the amount which is not collectible by the company due to partie bankruptcy

It can be estimated by the following methods using the Generally accepeted accounting principles (GAAP)

1. percent of accounts receivable method,

2. percent of sales method

3. the aging of accounts receivable method

Hence, the correct option is E.

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3 years ago