Answer and explanation:
2)
Date Account title Debit credit
Jan 31
1 Depreciation expense 525
Accumulated
depreciation -equipment 525
2
Bad debt expense 11160
Allowance for uncollectible account 11160
3 interest expense 255
Interest payable (51000*.06*1/12] 255
4 Income tax expense 13100
Income tax payable 13100
5 Deferred revenue 3100
sales revenue 3100
**Depreciation on equipment =[cost-residual value]/useful life
[16000-4300]/2
= 5850
Depreciation for one month = 5850*1/12= 487.5
**Accounts receivable at end = 46400 beginning+136000-125500-4900+134000=186000
Estimated uncollectible account at end =[12000*30%]+[(186000-12000)*.04]
= 3600+ 6960
= 10560
Unadjusted balance in allowance account =4300-4900=-600 debit
Bad debt expense= estimated uncollectible account at end- unadjusted balance in allowance account
= 10560 - (-600)
= 10560+600
= 11160
Answer:
Reporting results
Explanation:
Here reports involve various things like
1. Which of the trucks were parked as on June 30, 2011 at night
2. Figure out the ownership whether it is with the regional delivery service or not
3. Figure out the physical condition of the truck as per the guidelines prescribed
4. Analyze and evaluate the blue book for find out the fair value as per the blue book
These four things should be involved
Answer:
B. No, Yes
Explanation:
There are no indicators that the customer in Contract A has obtained control of the products; therefore, revenue should not yet be recognized for Contract A. The customer in Contract B has received legal title to the product, thus, the significant risks and rewards of ownership have transferred to the customer in Contract B. Contract B appears to be a bill-and-hold sale because the customer is not able to take delivery until their new stores are ready to receive the inventory and Festi has clearly set aside the product associated with Contract B.
Answer: d. If intermediate goods were counted, then multiple counting would occur.
Explanation: Gross domestic product (GDP) measures economic output--the value of final goods and services produced within a country's borders. If intermediate goods (goods that are used to make final products) were counted, then multiple counting would occur. This is the reason why in calculating the gross domestic product (GDP) for a specific year, only final goods and services (goods and services that are ready for sale or use) are included. Doing this does not mean that intermediate goods and services are not factored in in its calculation. What it means is that each intermediate step in a supply chain counts the value added at each step leading to the production of the final good.
Answer:
The adjustment is:
Debit Unrealized Loss Account with $4,000
Credit Trading Debt Fair Value Adjustment Account with $4,000.
Explanation:
Held for trading assets are form of investment that an entity holds for the purpose of selling them within a short term period. The changes in these investments are recognized in the statement of comprehensive income for the period and are taken to fair value adjustment account.
The accounting entries to pass for each event are listed below:
Increase in market value: Debit the asset fair value adjustment account
Credit the unrealized gain account.
Decrease in market value: Credit the asset fair value adjustment account
: Debit the unrealized loss account.
In the case of Littlefield industries, there was a loss of $4,000 ( $200,000 - $196,000). So the fair value adjustment account will be credited with $4,000 to bring the investment value down to $196,000 and a corresponding debit entry will be recognized as unrealized loss and transfer to income statement for the year.