All categories

3 years ago

Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.

Business

1 answer:

Thepotemich [5.8K]3 years ago

8 0

Answer:

Debit credit analysis of given journal entries.

Explanation:

1. Cash ac dr , Purchase (common stock) ac cr ... 30000

2. No entry for hiring only , No accrual or cash transaction takes place

3. Furniture ac dr, creditor/ accounts payable (Furniture supplier) ac cr ... 3800

6. Debtor/ accounts recievables (Roads') ac dr, Comission ac cr ... 10800

10. Cash ac dr, Comission ac cr ... 140

27. creditor/ accounts payable (Furniture supplier) ac dr, Cash ac cr ... 700

30. Salary ac dr, Cash ac cr 3000

You might be interested in

On January 1, 2013, Goll Corp. issued 3,000 of its 10%, $1,000 bonds for $3,120,000. These bonds were to mature on January 1, 20

LiRa [457]

Answer:

$24,000 Gain

Explanation:

Given that,

Bonds issued = 3,000

Par value = $1,000

Value of issued bonds = $3,120,000

Goll's gain in 2018 on this early extinguishment of debt:

= Issue price of bonds - Premium amortized - Callable value

= $3,120,000 - [($3,120,000 - $3,000,000) × 11/20] - (3,000 × $1,000 × 1.01)

= $3,120,000 - $66,000 - $3,030,000

= $24,000 Gain

4 0

3 years ago

Prine Company purchased equipment on January 1, 2018, for $ 25 comma 000. Suppose Prine Company sold the equipment for $ 3 com

Marat540 [252]

Answer:

a. The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale of the equipment:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

Explanation:

To recognize gain or loss on the sale of the equipment:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On December 31, 2019, the carrying amount of the asset = $25,000 - $16,000 = $9,000

Sale price - Carrying amount of the asset = $3,000 - $9,000 = -$6,000

=> The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale should be made:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

4 0

3 years ago

Gonzalez Company has been in business for several years. At the end of the current year, the ledger shows:

Westkost [7]

Answer:

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

Explanation:

The question states that bad debts are expected to be 5% of the accounts receivables. This means that it is: $327,400 x 5% = $16,370.

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 5% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply a prediction, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The initial entry for allowance for doubtful debts is incorrect, hence it would have to be corrected before the new amount can be recorded. Correction:

Debit : Allowance for doubtful debts = $7900

Credit : Bad debts = $7900

The accounts will be cancelled off and the new entry can be recorded...

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

6 0

4 years ago

Should the NLRB require union organizer access to the workplace as a quid pro quo for an employer demanding an election rather t

rewona [7]

Answer: yes

Explanation:this is so because When a union wants to unionize a new group of employees, it must first convince at least 30% of the employees to sign authorization cards. If the union successfully does so, the union then submits the cards to the NLRB for certification. If the NLRB certifies that the union has secured cards from 30% of the employees, it orders that a secret ballot election be held where the employees vote on whether to unionize. Typically, about two months pass between the time the NLRB certifies the cards and the time that the election actually takes place. During these two months, the union and the employer actively campaign for or against unionization. At the election, if a majority of employees vote to unionize, then the NLRB recognizes the union as the sole bargaining representative of the employees. The employer is then required by statute to bargain in good faith with the union to negotiate the “first contract” between the employees and the employer. This employment contract determines the terms and conditions for all employees represented by the union.

3 0

3 years ago

Suppose that due to a fear that the United States is about to enter a long period of stagnant growth, stock prices fall by 50% o

densk [106]

Answer:

spending would increase

Explanation:

Disposable income is either saved (invested) or spent.

If stock prices are expected to fall, individuals would be less willing to save their income and would prefer to spend their income instead.

As a result, spending would increase

6 0

3 years ago