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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

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Journalize the following merchandise transactions, using the net method under a perpetual inventory system.
Olenka [21]

Answer:

Part a

Debit : Accounts Receivable $18,000

Debit : Cost of Sales $10,800

Credit : Sales Revenue $18,000

Credit : Inventory $10,800

Part b

Debit : Cash  $16,200

Debit : Discount allowed $1,800

Credit : Accounts Receivable $18,000

Part c

Debit : Accounts Receivable $600

Credit : Cash $600

Explanation:

The perpetual method calculates the cost of sales for each transaction made.

See the journals prepared as above

6 0
3 years ago
____ are spending by the government on​ goods, services, and factors of production.
AlladinOne [14]

Answer:

The correct words for the blank spaces are: Government purchases; Government Expenditures.

Explanation:

Government purchases refer to the expenses the central government incurs in federal, state, and local agencies. These purchases represent part of the <em>Gross Domestic Product</em> (GDP) of the country considering transfer payments are not including in these expenditures.

When the transfer payments are added to the government purchases the result represents the Government Expenditures. It is one of the factors of the GDP along with private investments, individuals' consumption, and net exports (exports minus imports).

4 0
3 years ago
Benjamin Garcia's start-up business is succeeding, but he needs $210,000 in additional funding to fund continued growth. Benjami
Dima020 [189]

Answer:

Missing word <em>"Because the stock will be sold directly to an investor, there is no spread; the other flotation costs are insignificant"</em>

<em />

Fair Price is based on the current valuation of business and that is $840,000 in this case.

Fair Price = Current Value of Business/Number of Outstanding Shares

Fair Price = $840,000 / 37,000 shares

Fair Price = 22.7027027

Fair Price = $22.70.

Number of Additional Shares = Additional Funding Required/Fair Price Per Share =

Number of Additional Shares = $210,000 / $22.70

Number of Additional Shares = 9251.101321585903

Number of Additional Shares = 9251 shares

So, since additional funding of $210,000 is required, Benjamin will have to sell 9,251 shares as additional shares to the Angel.

6 0
3 years ago
The demand for textbooks is Q = 200 – P + 25 U – 50 P beer. Assume that the unemployment rate U is 8 and the price of beer P bee
Readme [11.4K]

Answer: -0.5

Explanation:

Based on the information given, the price elasticity of demand will be calculated as follows:

= dQ/dP × P/Q

where,

dQ/dP = -1

P = 100

Q = 200 – P + 25 U – 50 P beer

Q = 200 - 100 + 25(8) - 50(2)

Q = 200 - 100 + 200 - 100

Q = 200

Therefore, dQ/dP × P/Q

= -1 × (100/200)

= -1 × 1/2

= -1 × 0.5

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4 0
3 years ago
When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
geniusboy [140]

Answer:

c. a significant amount of market power 

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

3 0
3 years ago
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