Answer:
future savings
Explanation:
because at the end of the 5year saving she will be able get more interest on her saving
The Garcias own the condo in freehold but rent it to Suzette in leasehold.
<h3><u>
What is leasehold?</u></h3>
- A leasehold estate is a temporary ownership of the right to possess land or other property in which a lessee or tenant retains real property rights under some sort of title from a lessor or landlord.
- A leasehold estate is often regarded as personal property even though a tenant does have rights to real estate.
- In a leasehold arrangement, one party purchases the right to occupy land or a building for a predetermined period of time.
- Leasehold real estate can be bought and sold on the open market since a lease is a legal estate.
Thus, a leasehold differs from a freehold or fee simple, where property ownership is acquired outright and afterwards retained for an indefinite amount of time, as well as from a tenancy, when a property is let (rented) on an irregular basis, such as weekly or monthly.
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Answer:
J1
Inventory $7,350 (debit)
Trading Account - 2012 $7,350 (credit)
J2
Inventory $22,150 (debit)
Trade Payable $22,150 (credit)
J3
Write down of Inventory $20,690 (debit)
Inventory $20,690 (credit)
J4
Note Receivable $20,000 (debit)
Bank $20,000 (credit)
J5
Rent Prepaid $12,000 (debit)
Bank $12,000 (credit)
Explanation:
J1
Being Inventory on hand at begining of the year
J2
Being Inventory supplies acquired.
J3
Being inventory written down after physical count.
Inventory = $7,350 + $22,150 - $8,810 = $20,690
J4
Being Note received from a customer
J5
Being Rent for 1 year received in advance
Answer:
<u>October 1st:</u>
Cash 5,700 debit
Common Stock 5,700 credit
<u>October 10th</u>
Cash 660 debit
Service revenue 660 credit
Cash 3,600 debit
Note payable 3,600 credit
<u>October 20th</u>
accounts receivable 500 debit
service revenue 500 credit
Explanation:
journal entries for the transactions that occurred on October 1, 10, and 20
<u>October 1st: </u>
Cash No. 101 10/1 5,700
Common Stock No. 311 10/1 5,700
<u>October: 10/10</u>
Cash No. 101 10/10 660
Cash No. 101 10/10 3,600
Service Revenue No. 400 10/10 660
Notes Payable No. 200 10/10 3,600
<u>October 20th</u>
Accounts Receivable No. 112 10/20 500
Service Revenue No. 400 10/20 500
Answer:
check for recover ability and see whether the carrying amount is greater than fair value or not.
Explanation:
An impairment test is done when due to some changes it looks like carrying amount of some long lived asset of company ( in this case division of company ) is unrecoverable. So the first step would be to check for recover ability , where carrying amount would be compared to the cash flow which is expected from it in the future , if the asset is used or if it is disposed . The next step would be to recognize impairment loss which will take place when carrying amount is greater than the fair value.