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klio [65]
3 years ago
8

The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entrie

s have been prepared.
Debit Credit
Supplies $ 3,000
Prepaid Insurance 3,600
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 12,400
Rent Revenue 60,000
Interest Expense 0
Salaries and Wages Expense 14,000

An analysis of the accounts shows the following.

1. The equipment depreciates $280 per month.
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $400 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $400 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.
Business
1 answer:
Anastaziya [24]3 years ago
8 0

Explanation:

The adjusting journal entries are shown below:

1. Depreciation Expense A/c Dr $ 840    ($280 × 3 months for one quarter)

            To Accumulated Depreciation - Equipment A/c $840

(Being depreciation expense is recorded)

2. Unearned Rent Revenue A/c Dr $6,200     ($12,400 ÷ 2)

           To Rent Revenue A/c. $6,200

(Being half rent revenue earned is recorded)

3. Interest Expense A/c Dr $400

           To Accrued Interest A/c $400

(Being accrued interest is recorded)

4. Supplies Expense A/c  $2,150

             To Supplies A/c  $2,150

(Being the supplies expense is recorded)

The supplies expense is computed below

= Supplies balance - supplies on hand

= $3,000 - $850

= $2,150

5. Insurance Expense A/c Dr $1,200       ($400 × 3 months in one quarter)

                To Prepaid Insurance A/c $1,200

(Being the insurance expense is recorded)

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The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
Lera25 [3.4K]

<u>Solution and Explanation:</u>

The following journal entries will be passed in the book sof fasteners Inc., Co., which is a supplier of buttons and zippers for clothing

Date        Accounts Titles and Explanation  Post Ref    Debit  Credit

1 Nov-21  Notes receivable                                      $ 72,000  

      Accounts receivable-McKenna Outer Wear Co.        $ 72,000

2  Dec-31  Interest receivable (72000 * 9 \% * 40 / 360)    $720  

 Interest revenue                                                     $ 320

3  Jan-20  Cash                                           $ 73080  

 Interest revenue (72000 * 9 \% * 20 / 360)         $360

 Interest receivable                                          $720

 Notes receivable                                               $72,000

Note: the figures have been calculated and rounded off in the nearest dollar amount.

4 0
3 years ago
A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing th
Westkost [7]

Answer:

The company's cost of preferred stock is 5.1%

Explanation:

In order to find the cost  of the preferred stock we will need to divide the dividend the company pays on it by the net amount that the company is receiving for selling it.

In order to find the dividend we will multiply 9% by the par value of 20

Dividend = 0.09*20=1.8

Now we need to find the net amount the company receives for selling the preferred stock.

The company sells the stock for $40 but also has a issuing cost of $5, so in order to find the net amount we will subtract the cost from the price.

40-5= 35

35 is the net amount the company receives.

Now we will divide the the dividend 1.8 by the net amount 35

1.8/35=0.051

=5.1%

The company's cost of preferred stock is 5.1%

5 0
3 years ago
You want to go to Europe 5 years from now, and you can save $7,300 per year, beginning one year from today. You plan to deposit
tino4ka555 [31]

Answer:

$36,602.5

Explanation:

Your profit each year of saving $7,300 at 8.5% return each year is $620.5

In that case you earn $7,920.5 each. Multiply by 5 years which is the fifth year you made the last deposit, and you will arrive at $36,602.5

6 0
3 years ago
Read 2 more answers
They want to make a profit of $55,498 Unit Variable costs = $11 Unit selling price is = $37 Fixed costs = $18,470 How many units
belka [17]

Answer:

2,845 units

Explanation:

To find the answer you need to consider that the profit is equal to the sales minus the costs.

Let's consider that x is the number of units sold

Sales= Price per unit*number of units sold

Sales= 37x

Variable cost= Cost per unit*number of units sold

Variable cost= 11x

Fixed cost= 18,470

55,498=37x-11x-18,470

55,498+18,470=26x

73,968=26x

x=73,968/26= 2,845

According to this, the answer is that they need to sell 2,845 units to make the desired profit.

6 0
3 years ago
Sandra is purchasing a home with a first mortgage loan for $548,250, which is the conforming loan limit for the area where she l
Lostsunrise [7]

Question Completion with Options:

2.5 percentage points

1.5 percentage points

3.5 percentage points

6.5 percentage points

Answer:

Sandra's creditor must determine if the APR for the loan exceeds the average prime offer rate by:

1.5 percentage points

Explanation:

The first mortgage loan principal should not exceed the conforming loan limit for the area where Sandra lives at the time that she secures the loan approval. It behooves on Sandra’s creditor to determine if the annual percentage rate (APR) for the mortgage loan exceeds the average prime offer rate (or the sample rate that is a representative of the APRs charged by creditors for mortgage loans that have low-risk pricing characteristics) by 1.5 percentage points.

7 0
3 years ago
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