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WITCHER [35]
3 years ago
6

Prepare the journal entry, if any, required to record each of the initial business activities on September 1. (If no entry is re

quired for a transaction/event, select "No Journal Entry Required" in the first account field.)
a. On September 1, paid rent on the track facility for six months at a total cost of $12,000.
b. On September 1, received $55,200 for season tickets for 12-month admission to the race track.
c. On September 1, booked the race track for a private organization that will use the track one day per month for $1,900 each time, to be paid in the following month. The organization uses the track on September 30.
d. On September 1, hired a new manager at a monthly salary of $3,100, to be paid the first Monday following the end of the month.
Business
1 answer:
kipiarov [429]3 years ago
6 0

Answer:

The journal entries are as follows:

(a) On September 1,

Prepaid rent A/c Dr. $12,000

       To cash A/c                    $12,000

(To record the prepaid rent)

On September 30,

Rent expense A/c ($12,000 ÷ 6) Dr. $2,000

       To  Prepaid rent A/c                               $2,000

(To record the rent expense)

(b) On September 1,

Cash A/c Dr. $55,200

     To unearned revenue    $55,200

(To record the unearned revenue)

On September 30,

Unearned revenue A/c ($55,200 ÷ 12) Dr. $4,600

          To ticket revenue                                           $4,600

(To record the ticket revenue)

(c) On September 1,

No entry required.

On September 30,

Account receivable A/c Dr. $1,900  

           To Rent revenue                 $1,900

(To record the accounts receivable)

(d) On September 1 - No journal entry required

On September 30,

Salary expense A/c Dr. $3,100

         To salaries payable         $3,100

(To record the salaries expense)

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Economic sanctions are more restrictive than trade sanctions <br><br> True or False
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Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the F
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Explanation:

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6 0
3 years ago
Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $347,200 in cash. Th
Goshia [24]

Answer:

Kinman Company    272,000  debit

Royalties Kinman Co 54,000  debit

Building Kinman Co   21,200  debit

  Cash                             347,200  credit

--to record the purchase--

sales revenue 9,960 debit

        account receivables 9,960 credit

inventory                 6,972 debit

   cost of goods sold   6,972 credit

--to record the unsold part of the inventory in Kinman--

Cash       6,000 debit

Kinman Company   6,000 credit

-- to record dividends--

loss on investment 18,240 debit

retained earnings    9,680 debit

       Kinman Company 27,920 credit

--to record net loss of Kinman--

Explanation:

60% of Kinman Company:

680,000 x 40% = 272,000

Excess in Market value of building:

117,800 - 64,800 = 53,000

53,000 x 40% = 21,200

Royalty agreement market value: 135,000

135,000 x 40% = 54,000

Total Value:

272,000 + 21,200 + 54,000 = 347,200

now, we must "unrecord" the unsold part of the inventory of Kinman as it is now considered a intra-entity transaction.

<u><em>Sales Revenue:</em></u>

24,900 x 40% =  9,960

<em><u>Cost of Good Sold:</u></em>

77,700 x 24,900/111,000 x 40% = 6,972

Dividends: they are not considered gain but a distribution of cash from Kinman to us.

15,000 x 40% = 6,000

Losses impact the equity thus, decrease the Kinman Company account

45,600 + 24,200 = 69,800

69,800 x 40% = 27,920

The comprehensive loss will directly decrease retained earnigns rather a loss directly.

45,600 x 40% = 18,240

24,200 x 40% =  9,680

The rest of the transactions occurs in 2021 and we are only asked for 2019/2020

4 0
2 years ago
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