All categories

4 years ago

What are the adjusting journal entries for each month (june, september, december, march)?

Business

1 answer:

san4es73 [151]4 years ago

8 0

Answer:

June 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

September 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

December 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

March 2020

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

Explanation:

For each Month, Recognise an Expense - Interest and Also de-recognise the Asset - Cash as interest is being paid.

Interest Expense Calculation = 3/12×$225,000×4.5%

= $ 2,531.25

You might be interested in

The Chemco Company uses a highly toxic chemical in one of its manufacturing processes. It must have the product delivered by spe

alukav5142 [94]

Answer:

Annual demand (D) =7,000 gallons

Ordering cost per order (Co) = $3,600

Holding cost per item per annum (H) = $50

EOQ = √2DCo

EOQ = √2 x 7,000 x $3,600

$ 50

EOQ = 1,004 units

Q = 1,004

Total minimum inventory cost

= Total ordering cost + Total holding cost

= DCo + QH

Q 2

= 7,000 x $3,600 + 1,004 x $50

1,004 2

= $25,099.60 + $25,100

= $50,199.60

Re-order point

= Maximum usage per day x Maximum lead time

= 7,000 gallons x 10 days

310 days

= 226 units

Explanation:

EOQ is a function of square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

Total minimum inventory cost is the aggregate of total ordering cost and total holding cost.

Re-order point is the product of maximum usage per day and maximum lead time.

Maximum usage per day is annual demand divided by the number of working days in a year.

4 0

4 years ago

Merchandise with a sales price of $3,500 is sold on account with terms 2/10, n/60. The journal entry to record the sale would in

alexdok [17]

Answer:

debit to Accounts Receivable for $3,500 credit to Sales for $3,430

Explanation:

Merchandise with a sales price of $3,500 is sold on account with terms 2/10, n/60. The journal entry to record the sale would include a debit to Accounts Receivable for $3,500 credit to Sales for $3,430.

Since the goods were sold on account, it means that it was sold on credit and an entry to cash will be a wrong entry. The right Journal entry will be a debit to accounts receivable for the total amount and a credit to sales for the total amount less the proposed discount amount of 2%

6 0

4 years ago

Read 2 more answers

Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Pl

lukranit [14]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

4 0

3 years ago

FedEx Corporation is the world's leading express-distribution company. In addition to the world's largest fleet of all-cargo air

Masteriza [31]

Answer:

1) Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was:

(a) $12,000, 0

(b) $10,000, Loss 2000

2) Using the following structure, indicate the effects (accounts, amounts, and + or -) for the disposal of the truck in each of the three preceding situations.

Assets = Liabilities + Stockholders' Equity

Cash+Net Fixxed Asset=Liabilities+truck sold+sale-net-loss in sale

´=16000+(-28000+12000)=0+(16000-(28000-12000))

3) Prepare the journal entry to record the disposal of the truck for each situation in requirement 1.

Depreciation a 12000

Db Cash___________________ 16000

Depreciation________________ 12000

Fix asset____________________________________ 28000

Depreciation b 10000

Db Cash___________________ 16000

Depreciation_______________ 10000

Fix asset____________________________________ 28000

Loss in disposal of fixed asset_______2000

Depreciation c 15000

Db Cash___________________ 16000

Depreciation________________ 15000

Fix asset____________________________________ 28000

Income in disposal of fixed asset__________________ 3000

Explanation:

Truck sold 16000

Purchased 28000

Depreciation a 12000

Depreciation b 10000

Depreciation c 15000

Cash+Net Fixxed Asset=Liabilities+truck sold+sale-net-loss in sale

´=16000+(-28000+12000)=0+(16000-(28000-12000))

Depreciation a 12000

Db Cash___________________ 16000

Depreciation________________ 12000

Fix asset____________________________________ 28000

Depreciation b 10000

Db Cash___________________ 16000

Depreciation_______________ 10000

Fix asset____________________________________ 28000

Loss in disposal of fixed asset_______2000

Depreciation c 15000

Db Cash___________________ 16000

Depreciation________________ 15000

Fix asset____________________________________ 28000

Income in disposal of fixed asset__________________ 3000

7 0

3 years ago

PLS HELP

Vera_Pavlovna [14]

Answer:

1. How is a bond like an IOU?

A bond is an IOU because it is actually a type of IOU. A bond is in essence a security in which the bond issuer promises to pay the bondholder the full value of the bond at maturity, plus interest payments (coupons) that can be paid either periodically, or at maturity as well.

2. Why is an investment grade bond is considered a “safe” investment?

Investment grade bonds are those bonds that have a rating that is considered "safe". This rating is provided by agencies such as Standard and Poors or Moody's. It is the credibility behind these agencies that makes a bond with that type of rating a safe investment.

3. How can an investor make money by buying a bond?

The investor makes money because he or she obtains the full value of the bond at maturity plus interest (coupon payments).

Bondholders also have priority over stockholders in case of bankruptcy, so a bond is in many cases a safer investment than a stock.

4. Would you recommend your Stock Market Game team include a bond in your portfolio? Why, why not?

Yes, bonds should be included because they are one of the two main types of securities, the other being stocks precisely. Companies often have to take the decision to finance their operations either with bonds or stocks, or a combination of the two, so if the game includes bonds, it also becomes more realistic.

7 0

4 years ago