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
pochemuha
3 years ago
7

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. The company estimates fu

ture uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible.
2. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

3. Accrued interest revenue on notes receivable for January.

4. Unpaid salaries at the end of January are $33,900.

5. Accrued income taxes at the end of January are $10,300.


Record the adjusting entries on January 31 for the above transactionsOn January 1, 2018, the general ledger of ACME Fireworks
Business
1 answer:
Pani-rosa [81]3 years ago
4 0

Answer and explanation:

2)

Date                    Account title                Debit credit

Jan 31    

1                            Depreciation expense 525  

                                  Accumulated

                                  depreciation -equipment          525

2

                                 Bad debt expense         11160

               Allowance for uncollectible account               11160

3                                       interest expense 255  

                    Interest payable (51000*.06*1/12]               255

4                               Income tax expense 13100  

                                       Income tax payable              13100

5                                    Deferred revenue 3100  

                                                 sales revenue             3100

**Depreciation on equipment =[cost-residual value]/useful life

     [16000-4300]/2

      = 5850

Depreciation for one month = 5850*1/12= 487.5

**Accounts receivable at end = 46400 beginning+136000-125500-4900+134000=186000

Estimated uncollectible account at end =[12000*30%]+[(186000-12000)*.04]

          = 3600+ 6960

          = 10560

Unadjusted balance in allowance account =4300-4900=-600 debit

Bad debt expense= estimated uncollectible account at end- unadjusted balance in allowance account

           = 10560 - (-600)

            = 10560+600

                = 11160

You might be interested in
Did I do this finance question correctly?<br><br> (Please help asap)
katrin [286]

Answer:

kjasdhfkjsadhffjjh

Explanation:

eeeywerriwueeryy777777777777

6 0
3 years ago
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter
snow_lady [41]
I just needed some points to figure things out i don’t do anything else
7 0
3 years ago
1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.
MrMuchimi

Answer:

1.

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

2.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

1.

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B  + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66  +  0.34 * 1.21  +  0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

2.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037  +  1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

3 0
3 years ago
Ứng dụng thuyết X Y Z vào công ty Honda Việt Nam
Arlecino [84]

Answer:

I d speak this language sorry <3

7 0
2 years ago
During the second year of the equipment’s life, $21,900 cash is paid for a new component expected to increase the equipment’s pr
Alona [7]

Answer:

   S/N              ACCOUNT                                 DEBIT                  CREDIT

      1             Equipment                                   $22,000

                        Cash                                                                     $22,000  

                    Being payment for new component expected to increase the

                    equipment’s productivity by 10% a year

      2.           Equipment Repairs expenses      $6,250

                       Cash                                                                          $6,250

                    Being payment for equipment repair

     3.            Equipment                                       $14,870

                       Cash                                                                          $14,870

                    Being payment for equipment repair to prolong the useful life

                    the asset

Explanation:

The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.

Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.

The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is  expected to increase the equipment’s productivity by 10% a year.

The  $6,250  paid for normal repair is a revenue items which is to be expensed against the earning of that period.

The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.

7 0
3 years ago
Other questions:
  • On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable
    9·1 answer
  • Joey's father is in a car accident and cannot work. what type of insurance replaces his father's earnings?
    7·2 answers
  • Analyzing portfolio risk and return involve the understanding of expected returns from a portfolio. Consider the following case:
    15·1 answer
  • Which of the following competitors mentioned in the textbook should the owner of a Wendy's restaurant monitor closely due to its
    15·1 answer
  • You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla
    8·1 answer
  • Momentum Rollerblades has three product lines: D, E, and F. The following information is available:
    7·1 answer
  • Which of the following statements about portfolio diversifications are correct? Check all that apply. The risk of a portfolio de
    8·1 answer
  • What is a loan?
    5·1 answer
  • One of the most important issues for Mr. Reuben to address beyond the desires of the employees for particular types of benefits
    9·1 answer
  • ____?____ brands are a form of private, no-frills goods stocked by some retailers that usually get secondary shelf locations, ha
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!