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7nadin3 [17]
3 years ago
13

XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nom

inal account. The December 31, 2020 adjusting entry is
Business
1 answer:
djverab [1.8K]3 years ago
7 0

Answer:

Dr Rent revenue

Cr Unearned rent revenue, $4,500

Explanation:

Preparation of XYZ Company Journal entry

Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

(3/12 x $18,000 ).

Dr Rent revenue

Cr Unearned rent revenue, $4,500

(3/12 x $18,000 )

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Based on the following information, determine the location quotient for KuDu City and whether this city has a competitive advant
Nata [24]

Answer: 7.24

Explanation:

The location quotient for this question can be calculated by;

=  ( Employment in Amusements and Recreation in KuDu City / Total Employment in KuDu City) / (Employment in Amusements and Recreation (nationally) / Total Employment (nationally))

= (54,446/578,477) / (1,381,377/ 106,201,232)

= 7.2359

= 7.24

5 0
3 years ago
Alpha Company has assets of $624,000, liabilities of $262,000, and equity of $362,000. It buys office equipment on credit for $8
Sphinxa [80]

Answer:

The effect is an increase in the balance of assets by $87,000 and  a corresponding increase in the balance of liabilities.

Explanation:

The accounting equation shows the relationship between all the elements of the balance sheet. These are the assets, liabilities and owners equity. It is shown as

Assets = Liabilities + Equity

When a company buys an asset on account, the entries required are debit assets, credit accounts payable. This means that asset increases but so does liabilities balance.

Hence asset increases to

= $624,000 + $87,000

= $711,000

Liabilities also increases to

= $262,000 + $87,000

= $349,000

3 0
3 years ago
On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires a
Charra [1.4K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) The amortization schedule is presented on the attachment below:

2).

Journal Entry

1 Jan Cash A/c      Dr. $147,750  

   To Notes payable A/c      $147,750

(Being the cash received is recorded)

31 Dec   Interest expense A/c    Dr. $10,342.50  

   Notes payable A/c      $33,277.50

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $8,013.08  

   Notes payable A/c      $33,606.93

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $5,520.59  

   Notes payable A/c      $38,099.41

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $2,853.83  

   Notes payable A/c      $40,766.17

 To Cash A/c    $43,620

(Being the annual payment of installment including interest and setting off liabilities is recorded)

3).

                                                            Bryson Company

                                                           Income Statement

Particular  Amount ($)

Revenue  -

Expenses  

Less - Interest expense 10,342.50

Less - Other expenses -

Net Income -  

4 0
3 years ago
Facial cosmetics provides plastic surgery primarily to hide the appearance of the appearance of unwanted scars and other blemish
Gala2k [10]

Answer:

1.Alllowance for uncollectible accounts 2,400

2.Dr Bad Debt Expense 2700

Cr Allowance for Doubtful Account 2700

3.Dr Allowance for Doubtful account 400

Cr Accounts receivable 400

4) Dr Cash 100

Cr Allowance for Doubtful account 100

Explanation:

Calculation of the allowance for uncollectible accounts

Using this formula

Alllowance for uncollectible accounts=(Not Yet Due)+(0-30 days past due)+(30-60 days past due)+(More than 60 days pst due)

Let plug in the formula

Alllowance for uncollectible accounts=

(30,000 *2% )+ (10,000* 5%) + (7,000* 10 %)+(3,000* 20% )

Alllowance for uncollectible accounts =600+500+700+600

Alllowance for uncollectible accounts = 2,400

2)Record of the he December 31, 2018 adjusting entry

300 debit balance+ 2,400

=2,700 Adjustment

Dr Bad Debt Expense 2,700

Cr Allowance for Doubtful Account 2 700

3) Journal entry to record the write off.

Dr Allowance for Doubtful account 400

Cr Accounts receivable 400

4) Journal entry to Record the cash collection

Dr Cash 100

Cr Allowance for Doubtful account 100

7 0
3 years ago
If firms decide to use comparison advertisements, they
storchak [24]
If firms decide to use comparison advertisements they have to make sure the advert stays within legal requirements.

This link will make things clearer:
https://www.investopedia.com/terms/c/comparative-advertising.asp

Hope this helps
4 0
3 years ago
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