Answer:
The City of Willows
Reconciliation Entries:
Debit Cash $500
Credit Deferred Revenue $500
To record the increase of deferred revenue.
Debit Compensated Absences Expense $150
Credit Compensated Absences Liability $150
To record the increase of compensated absences.
Explanation:
a) Data and Calculations:
Beginning balances:
Deferred Revenue = $3,500
Compensated Absences Liability = $1,000
Increases during the year:
Deferred Revenue = $500
Compensated Absences = $150
Reconciliation Entries:
Cash will increase by $500 and Deferred Revenue will increase by $500
Expenses will increase by $150 and Compensated Absences (Liability) will increase by $150.
Answer:
The correct option is (c)
Explanation:
Amortization is the way toward assigning the cost of an intangible resource over its valuable life. Straight-line amortization is one strategy for doing as such.
The method does evaluate the total amount Red may amortize for 2019:
$11,667 [$300,000 × (7 months/180 months)]. The total amount Red should amortize is 11,667$ for the year 2019.
Answer:
$2,116
Explanation:
The computation is shown below:
Option 1 - Leasing
= 3510 + ( 3510 ÷ 1.2 ) + ( 3510 ÷ 1.2 ^ 2 )
= 8872.5
Now
Option 2 - Buying
Given that
Initial Cost - 5185
PV of salvage value = 1330 ÷ 1.2 ^ 3
= 769.68
So,
Cost = 5185 - 769.68
= 4457.176
Now the payment should be
= 4457.176 × 0.47473 (PV annuity factory for 20% at 3 years)
= $2,115.955
= $2,116
Answer:
the government increases government spending initially by $100 billion, and total income in the economy increases by more than $100 billion.
Explanation:
When there is a rise in the government spending so it would rise the income i.e. higher that this represents the multiplier effect
If there is a rise in government spending so the Aggregate demand curve should be right due to which the income and level of the price would rise
Also if there is any change in the price level that moves along with the similar curve so this we cant called as the multiplier effect
hence, the above represent the answer
Answer:
B. Overstate net income by $28,000
Explanation:
Provided that
Unpaid employee wages = $28,000
Since no adjusting entry is made
So, it would overstate the net income and the expenses account too for $28,000 as no adjusting entry is passed that reduced the expenses account
Therefore, it will give impact two accounts i.e net income and the expense account. Both the accounts are overstated for $24,000