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Fiesta28 [93]
3 years ago
6

During the month of September, the Texas Go-Kart Company had the following business activities: a. On September 1, paid rent on

the track facility for six months at a total cost of $7,200. b. On September 1, received $45,600 for season tickets for 12-month admission to the race track. On September 1, booked the race track for a private organization that will use the track one day per month for $1,700 each time, to be paid in the following month. The organization uses the track on September 30. d. On September 1, hired a new manager at a monthly salary of $2,300, to be paid the first Monday following the end of the month. Required: 1. Prepare the journal entry, if any, required to record each of the initial business activities on September 1 2. Prepare the adjusting journal entries, if any, required on September 30
Business
1 answer:
KiRa [710]3 years ago
6 0

Answer:

Explanation:

a)

Sept.1

Dr Prepaid rent 7200

   Cr Cash 7200

Sept.30

Dr Rent expense (7200/6) 1200

    Cr Prepaid rent 1200

b)

Sept.1

Dr Cash 45,600

   Cr Unearned revenue 45,600

Sept.30

Dr Unearned revenue (45,600/12) 3800

   Cr Ticket revenue 3800

d)

Sept.1 - no journal entry

Sept.30

Dr Salary expense 2300

    Cr Salaries payable 2300

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aliina [53]

Answer:

A. Forecast for July = 42.

B. Forecast for August = 42.45

C. Because of seasonality in the banking industry.

Explanation:

A. Forecast for July = Forecast for June + Smoothing constant x (Forecasting error)

                                 = 42 + 0.15 (42-42) = 42

B. Forecast for August = Forecast for July + 0.15 (Forecasting error)

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C. Because there is a great deal of seasonality in the processing requirements of banking industry, this forecasting method (exponential smoothing) might not be appropriate for this situation.

5 0
3 years ago
A preferred stock sells for $54.20 a share and has a market return of 9.68 percent. What is the dividend amount
kolbaska11 [484]

Answer:

$5.25

Explanation:

A preferred stock is sold at $54.20

The market return is 9.68%

Therefore the dividend amount can be calculated as follows

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= 54.20 × 0.0968

= $5.25

Hence the dividend amount is $5.25

6 0
3 years ago
You are a manager in a perfectly competitive market. the price in your market is $14. your total cost curve is c(q) = 10 + 4q +
balu736 [363]
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5 0
4 years ago
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Vlad [161]

Answer:

2250

Explanation:

Assumption: <u>Par value of the bonds to be issued is $1000 </u>

Current Capital structure is 100% equity financed of Dirty Don's Bicycle Shop.

Share capital of Dirty Don's bicycle shop = 1,00,000 shares × $50

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6 0
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