Answer:
The concept of EMI i.e. Equal monthly installments will be used.
Explanation:
Given that:
Purchase amount of house = $3,00,000
Down payment made = 20% of 3,00,000 = $60,000
Balance amount = $2,40,000
Therefore, to determine the monthly payment the concept of Equal monthly installment will be used.
Answer: The amount of the loss can be reasonably estimated and it is probable that an asset has been impaired or a liability has been incurred.
Explanation:
A loss contingent is an expense that is based on a future event for instance, if the company loses a law suit and would have to pay settlement costs.
Loss contingents are only permitted to be accrued if the probability that they will happen is likely and even at that, the amount of loss needs to be capable of being reasonably estimated. This way, a proper estimate can be made that will represent the situation adequately.
Answer and Explanation:
The adjusting entry is given below:
On Dec 31,2017
Unearned Rent Revenue $25,000 ($75,000 × 4 months ÷ 12 months)
To Rent Revenue $25,000
(Being revenue earned is recorded)
Here unearned rent revenue is debited as it decreased the liability and credited the rent revenue as it increased the revenue
Answer:
The accounts identified to be adjusted are Smith's Common Stock and Smith's Preferred Stock.
The amount to be recorded is $ 1,200,000 and $ 124,000 respectively.
Explanation:
from the information:
$ 1,200,000 for Investment in Smith's Common Stock and $ 124,000 for Investment in Smith's Preferred Stock.
The investment account includes the fair value of Consideration in form of the fair value of both types of stocks, common stock and preferred stock.
Answer: $900
Explanation: LIFO inventory costing method.
This means Last In First Out method. Since the last stock for the year was bought in Nov and the company sold 150 units.
Using LIFO method, 150 * $6 = $900