Answer:
D. $20,240
Explanation:
Adjusted balance should be reported in the balance sheet as on August 31.
Adjusted Cash Balance calculation
Cash balance as per books August 31 $18,900
Add:
Note collected by bank for the Colt Company $1,500
Less:
NSF check ( $110 )
Bank service fees <u> ( $50 ) </u>
Adjusted Balance of cash account $20240
*The Following adjustments are already included in the Cash account balance so, these do not need any settlement in cash account.
Checks outstanding $4,500
Deposits outstanding 4,000
Answer:
The tax for all five cases is as calculated in the attached figure.
Explanation:
The calculation of tax for individual income is calculated as attached in the excel file screen shot. As year is not mentioned, the tax tables are used for 2015 (As observed by finding a reference question).
Net Taxable Income: |$62449
Dividend: |$ (560)
--------------------------------------------
Taxable Income |$ 61889
(excluding dividend) |
For income bracket | Tax Rate | Tax Amount
(0-18450) | 10% of Income | 18450*10%= $1845
(18451-74900) | 15% of Income | (61889-18450)*10%= $6525.85
Total Tax (Less Dividend) | $ 8360.85
Tax on Dividend is given as
0% for Income less than 74900. As income is less than the value so the dividend tax is 0.
Total Tax=Tax(less dividend)+Tax(dividend)
Total Tax=$ 8360.85
The other entries are calculated using the same in the excel and the screenshot is attached below.
Around your early 40s , make sure you start early
Answer: The correct answer is "b. debit Cash and Accumulated Depreciation; credit Machinery, and Gain on Disposal".
Explanation: When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be recorded with:
----------------------------------- . --------------------------------------------
Cash xxxx
Accumulated depreciation xxxx
Machinery xxxx
Gain on disposal xxxx
---------------------------------- . -----------------------------------------------
Cash is debited because the asset increase must be recorded, for the money entered for the sale.
The accumulated depreciation is debited to the fact that since the machinery leaves the estate, the account must be canceled.
Machinery is credited because when leaving the estate the account must be canceled.
"Gain on disposal" is credited as being an account of the positive result produced by the difference between the money received and the book value of the machinery.
Answer:
(a) Taci Company lent the money on September 1:
Debit Notes receivable $88,000
Credit Cash $88,000
<em>(To recognize notes receivable)</em>
(b) On December 1:
Debit Cash $88,880
Credit Notes receivable $88,000
Credit Interest receivable $880
<em>(Collection of notes principal and interest at maturity)</em>
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest revenue is $88,000 x 4%/12 x 3 months = $880.
Monthly interest revenue is therefore $880 / 3 months = $293.33.