1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dvinal [7]
3 years ago
8

Knowledge Check 01 Simpson Company purchased $900 of equipment by paying cash and recorded the expenditure as a purchase of land

. The error was discovered a week later. Prepare the two journal entries required to correct the error. (First, reverse the error and then record the appropriate entry.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
aniked [119]3 years ago
6 0

Answer:

Dr Cash900

Cr Land900

Dr.Equipment 900

Cr Cash 900

Explanation:

Simpson Company Journal entries required to correct the error that occured, in which expenditure was credited to Cash, but was debited to Land instead of Equipment.

Dr Cash900

Cr Land 900

To reverse erroneous entry

Dr.Equipment900

Cr Cash 900

To record correct entry

You might be interested in
Which of the following measures how the level of well-being in a country has changed over time? a. level of nominal GDP per pers
Taya2010 [7]

Answer:

d. growth rate of real GDP per person.

Explanation:

The level of well being of a country can be found by considering the price-index, i.e The real GDP per person and not nominal GDP per person.

4 0
3 years ago
Your firm currently has $ 100 million in debt outstanding with a 10 % interest rate. The terms of the loan require the firm to r
balu736 [363]

Answer:

$8.30 million approx

Explanation:

The computation of the present value of the interest tax shield is shown below:

Year                            0                    1                     2                   3                   4

Outstanding debt    $100 million   $75 million   $50 million    $25 million  $0

Less: Interest                                    $10 million    $7.5 million  $5 million    $2.5 million

Less: Tax shield at 40%                   $4 million      $3 million     $2 million    $1 million of interest

Discount factor at 10%                     0.90909       0.82645        0.75131   0.68301

Present value                                   $3.63 million  $2.48 million  $1.50 million  $0.683 million

So, the present value is $8.30 million approx

The discount factor should be computed below  

= 1 ÷ (1 + rate) ^ years

6 0
3 years ago
What is time utility and possession utility?
Pie

Answer: The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services.

4 0
3 years ago
Read 2 more answers
You have a list of european stocks that are priced in euros. where can you go to format the prices in euros in excel?
kupik [55]
To convert prices in euros in dollars it means you should make Currency Conversion. In order to do the currency conversion you should take several steps in Excel:
1. <span>Select a blank cell next to the price in Euros and enter the formula </span>=NUMBERVALUE(A2,",","."). 
Now you will have the amount. If you also want to have the symbol for dollars you should:
2. Format the cell: Right click-> Format->Currency and select the currency.

7 0
3 years ago
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1
UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation:                                      Second year depreciation:

= 1,250 * 8                                                                  = 2,755 * 8

= $10,000                                                                   = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date                    Account Title                                    Debit                 Credit

June 30, Year 1 Depreciation                                     $10,000

                          Accumulated Depreciation                                       $10,000

Date                       Account Title                                   Debit                 Credit

June 30, Year 2     Depreciation                                 $22,040

                              Accumulated Depreciation                                  $22,040

Date                       Account Title                                   Debit                 Credit

June 30, Year 3     Depreciation                                 $9,800

                              Accumulated Depreciation                                  $9,800

4 0
3 years ago
Other questions:
  • Willie is the production manager of the sterile ophthalmic formulations division of Pharmogrep, a pharmaceutical manufacturing c
    8·1 answer
  • When Ingrid was selling her house, she contacted Gabe, her real estate agent, to help her with the sale. Gabe's services include
    5·1 answer
  • Transactions for Sheridan Company for the month of June are presented below.
    8·1 answer
  • Alex has been charged with manslaughter and the charge is being reviewed by grand jurors. The grand jurors have determined that
    10·1 answer
  • Reasons why South African post office taking private courier companies to court​
    14·1 answer
  • Gray uses Hofstede's cultural values that were discussed in Chapter 1 to:
    12·1 answer
  • Please choose A, B, C, or D
    7·2 answers
  • Emily Corporation has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation
    14·1 answer
  • Fannie Mae and Freddie Mac are responsible for creating most of the commonly-used residential appraisal report forms.
    9·1 answer
  • When a company creates overhead rates based on the actions it performs, it is employing an approach called.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!