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Genrish500 [490]
3 years ago
12

The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $25,000 from a bank and signe

d a note. Principal and interest at 12% will be paid on January 31, 2022. Apr. 1 Paid $6,200 to an insurance company for a two-year fire insurance policy. July 17 Purchased supplies costing $4,100 on account. The company records supplies purchased in an asset account. At the year-end on December 31, 2021, supplies costing $1,900 remained on hand. Nov. 1 A customer borrowed $9,900 and signed a note requiring the customer to pay principal and 10% interest on April 30, 2022.
Required:
1. Record each transaction in general Journal form.
2. Prepare any necessary adjusting entries at the year-end on December 31, 2021. No adjusting entries were recorded during the year for any item
Business
1 answer:
Rom4ik [11]3 years ago
7 0

Answer: Please see answers in explanation column

Explanation:

1.The Journal entries are as follows

1. To record amount borrowed

Date account title        Debit                            Credit

Feb 1   Cash                           $25,000

         Notes payable                                                $25,000

 

2. To record prepaid insurance

Apr 1 Prepaid insurance         $6,200

                  Cash                                                             $6,200

 

3. To record supplies purchased

July 17 Supplies                         $4,100

         Account payable                                                       $4,100  

4 To record money lent to customer

Nov 1 Notes receivable                   $9,900

             Cash                                                                         $9,900

2)Adjusting entry    are as follows

1.To record accrued interest

Date account title               Debit                         Credit

Dec 31 Interest expense       $2,750

            Interest payable                                                 $2,750

Calculation

Interest expense = principal x rate x period

$25,000 x 12% x 11/12 = $2,750

 

2)To record insurance expense

Date account title               Debit                         Credit

Dec 31 Insurance expense $2,325

Prepaid insurance                                                                  $2,325

Calculation

Insurance expense = amount on insurance x period

$6,200 x 9/24=$2,325

3.To record supplies expense

Dec 31 Supplies expense                 $2,200

                       Supplies                                                       $2,200

Calculation

Amount purchased - amount remaining on   hand

=$4,100 -$1,900=$2,200

4. To record interest  received from customer

Dec 31 Interest receivable        $165

             

                Interest revenue                                                        $165

Calculation

Interest receivable  = principal x rate x period(Nov-DEC )

$9,900 x 10% x 2/12 = $165

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Ksju [112]

Answer:

$186,000

Explanation:

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Cash flows from operating activities

Net Income                                                            $175,300

Add: Non cash Expense Adjustments:

Depreciation expense                           $21,300

Amortization of bond premium             <u>$5,400 </u>

                                                                               $26,700

Change in Working Capital:                          

Increase in inventory                            ($17,500)

Increase in accounts receivable          ($9,700)

Increase in accounts payable               $18,500

Decrease in income taxes payable      ($7,300)

                                                                              <u>($16,000)</u>

Net Operating Cash flow                                      <u>$186,000</u>

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Depreciation and amortization are non cash expenses which was deducted in the calculation of Net income.

Increase in Liability will provide the cash and increase in assets will use the cash.

Increase in Bond Payable is the change in long term liability which is not included in the working capital and it is the part of the cash flow from financing activities.

5 0
3 years ago
When Gene started his window-washing business, he wanted to keep things simple. He liked the idea of being his own boss and the
nika2105 [10]

Answer:

Self-employment is the state of working for oneself rather than an employer. Self-employed people generally find their own work rather than being provided with work by an employer, earning income from a trade or business that they operate.

Explanation:

6 0
3 years ago
Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000
777dan777 [17]

Answer:

correct option is b. $22,000

Explanation:

given data

reported revenues = $810,000

expenses = $630,000

annual amount of amortization  = $15,000

solution

we get here net income 2019 is

net income 2019 = revenue - expenses - amortization  ........1

put here value

net income 2019 = $810,000 - $630,000 - $15,000  

net income 2019 = $165,000

and

as here acquired stock on September

so we get here income for September to December that is

net income = $165,000 × \frac{4}{12}    

net income = $55000

and

non controlling interest is

non controlling interest = 40% of $55000

non controlling interest = $22,000

so correct option is b. $22,000

5 0
3 years ago
Assume that consumers' incomes and the number of sellers in the market for good A (a normal good) both decrease. Based upon this
Vadim26 [7]

Answer:

Quantity will Increase

Explanation:

As we know that when market is in equilibrium so the demand curve should be intersected the supply curve. At the time when there is an increase in suppliers so supply curve shift rightward due to which the consumer income would increase and this result in more demand. So the demand could be shift in rightward

So here the price should be the same but the quantity is increased

4 0
2 years ago
Commercial paper isa. ) loans made by commercial banks b.) loans made by the federal reserve bank to its members c.) a corporati
miv72 [106K]

Answer: a corporations short term notes

Explanation: Commercial paper can be defined as the money market security having maturity of less than 270 days. These are not backed by any collateral thus these could be issued by large companies having high credit worth in the market.

These are issued by corporations for coping with its short term obligations.

These are guaranteed by the issuing company.

3 0
3 years ago
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