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Ivahew [28]
3 years ago
12

The following transactions occurred during December 31, 2021, for the Falwell Company. A three-year fire insurance policy was pu

rchased on July 1, 2021, for $14,040. The company debited insurance expense for the entire amount. Depreciation on equipment totaled $13,500 for the year. Employee salaries of $19,500 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrowed $250,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. On December 1, 2021, the company received $7,500 in cash from another company that is renting office space in Falwell’s building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. On December 1, 2021, the company received $7,500 in cash from another company that is renting office space in Falwell’s building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $7,500 on December 1, 2021. Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Leya [2.2K]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

1. Insurance expense for 6 months = 12,960 x 6/36

= $2,160

Prepaid insurance on December 31, 2021 = 12,960 - 2,160

= $10,800

2.Interest expense for 2 months = 220,000 x 12% x 2/12

= $4,400

Kindly comment if you need further assistance. Thanks

Download xlsx
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The price elasticity of demand in the United States for crude oil has been estimated to be minus 0.061 in the short run and minu
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Answer: B. is more price elastic in the long run than in the short run because in the long run a substitute for crude oil may be found

Explanation:

The Demand for Crude oil is more elastic in the long run than in the short run because in the long run a substitute for crude oil may be found.

Crude oil is more elastic in the long run because consumers have enough time to find substitute products for crude oil. Price elasticity of demand in the short run  is low because consumers donot have sufficient time to look for substitutes , they donot have much of a choice but to take whatever price is charged by producers of crude oil

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3 years ago
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The independent cases are listed below includes all balance sheet accounts related to operating activities: Net income Depreciat
OLEGan [10]

Answer: Please see below

Explanation: The values from  the question are scattered, but here is how they should appear

                                                    Case A       Case B         Case C  

Net income                               $310,000         15,000 $420,000    

Depreciation expense                  40,000   150,000       80,000

Accounts receivable increase

(decrease                                      100,000 (200,000) (20,000)

Inventory increase (decrease)        (50,000)   35,000   50,000

Accounts payable increase           (50,000)   120,000   70,000

Accrued liabilities increase

(decrease)                                  60,000  (220,000) (40,000)

To calculate the operating activities section of cash flows for each of the given cases,

we use the Indirect method formula

Net cash flow from operating actvities  = Net Income + Non-Cash Expenses – Increase in Working Capital

Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses

Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue

Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as

                                  Case A                   Case B               Case C

Net Income               $310,000                15,000         $420,000  

Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities

Depreciation                   40,000              150,000       80,000

Changes in Assets and Liabilities

Accounts Receivable        - 100,000       200,000           20,000

Inventory                              50,000           -35,000        - 50,000    

Accounts Payable            -50,000            120,000       70,000

Accrued Liabilities              60,000           - 220,000       -40,000

Net Cash Provided by Operating Activities

                                      $310,000         $230,000       $500,000

6 0
3 years ago
During the year, Bears Inc. recorded credit sales of $620,000. Before adjustments at year-end, Bears has accounts receivable of
AleksandrR [38]

Answer:

Bad Debt Expense Dr. $28050        

Allowance for Uncollectible accounts Cr. $28050

Explanation:

given data

credit sales = $620,000

accounts receivable = $320,000

past due = $55,000

credit balance = $2,600

rate = 7 %

rate = 22 %

solution

so here Not yet past due is = $320,000 - $55,000 -

Not yet past due = $265,000

and

past due = $55,000

so  Required provision is

Required provision = $265,000 × 7 % + $55,000 × 22 %

Required provision = $30650

and

Opening balance is $2,600

so

Required expense for year = $30650 - $2,600

Required expense for year  = $28050

so here

correct entry is

Bad Debt Expense Dr. $28050        

Allowance for Uncollectible accounts Cr. $28050

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3 years ago
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Volgvan
A.) head-on. 
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3 years ago
Which non-income factor for a potential job would influence a person who values easy access to entertainment and culture?
Vaselesa [24]

Answer:

C

Explanation:

Do to the rEASON I FOUND ONLINE

4 0
3 years ago
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