Answer and Explanation:
The classification is as follows
a. It is a long term liability as it is due in 2 years i.e. more than one year
b. The $20,000 represent the current liability and the balance would be classified as the long term liability
c. The $15,000 represent the current liability
d. The account payable of $60,000 shows the current liability
In this way it should be classified
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $5,200
To Sales revenue A/c $5,000
To Sales tax payable A/c $200
(Being the cash is collected in respect of sales and sales tax)
Since the cash is collected so we debited the cash accounts and the sale is made. Along with it, the sale tax is also collected so these two accounts are credited.
8,400 is your answer all you have to do is add the 4 sales and subtract the discounts and the returns
Answer:
generally you need to determine the cost per unit, but in this case you are given a percentage of depletion = 10% x $225,000 = $22,500 which determines the inventory value (or depletion expense if the timber is sold) during the year.
the journal entry should be:
December 31, 20xx
Dr Timber inventory 22,500
Cr Accumulated depletion - timber tract 22,500
Answer:
-$7,000
Explanation:
Net loss reported by Jamaal this year from the S corporation:
= Ordinary income - suspended loss from the S corporation
= (40 percent of the S corporation × Ordinary income) - suspended loss from the S corporation
= (40% × $10,000) - $11,000
= $4,000 - $11,000
= -$7,000
Jamaal may deduct the $11000 loss carryover against his debt basis,
which was increased by his $14,000 contribution,
and his $4,000 share of S corporation income.