Answer:
A credit to an unearned revenue account
Explanation:
Ordinarily, when cash is received from a person whereas service has not been performed, the accounting entry is to debit cash account and credit the unearned revenue account.
Here, the receipt of cash means that revenue was realized however, the service expected have not been performed hence necessitated crediting the unearned revenue account and a debit to the asset cash for the amount received.
Answer:
1. Dr cash 35000
Cr Share capital 35000
2.Dr Office supplies 400
Cr Account payable 400
3. Dr Office equipment 8000
Cr Cash 2000
Cr Notes payable 6000
4. Dr Commission receivable 4000
Commission income 4000
5. Dr Rent expense 700
Cr Cash 700
6. Dr Account payable 200
Cr Cash 200
7. Dr Advertising expense 600
Accounts payable 600
8. Dr salaries expense 2200
Cr Cash 2200
9.a)Dr Retained earning 1200
Cr Dividend payable 1200
b) Dr Dividend payable 1200
Cr Cash 1200
10. Dr Bank 3000
Cr commission receivable 3000
Explanation:\
9. First dividend has to be declared then it is paid.
Answer:
June 15
Dr Accounts payable $1,000
Cr Cash $400
Cr Notes Payable $600
Explanation:
Preparation of the June 15 journal entry for Coolidge
Based on the information given the June 15 journal entry for Coolidge will be :
June 15
Dr Accounts payable $1,000
Cr Cash $400
Cr Notes Payable $600
(Being to record amount payable )
Answer:
c. III only
Explanation:
The correct option is - c. III only
Reason -
III option is correct because The trade-off theory states that there is an optimal level of debt for firms, given the benefits of tax shields and the costs of financial distress