Answer and Explanation:
the journal entry is given below:
Depletion Expense $1,358,500
To Accumulated Depletion $1,358,500.
(Being depletion expense is recorded)
Here the depletion expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
Working note
Depletion expense is
= ($5,900,000 + $600,000) ÷ $2,000,000 × 418,000
= $1,358,500
Answer:
These statements would fit well in an apology letter:
- Make a promise that it won't happen again - Putting the wrong date is a very serious and very strange mistake at the same time. It's strange because professionals usually do not make that kind of mistake, and it's serious because it can completely distort as schedule, as it happened in this case.
- Apologize sincerely - again, as the mistake was serious and strange at the same time, an apology is necessary.
- Accept responsability - accepting responsability for one's actions is not only the professional thing to do, but also the ethical thing to do.
And this statement is appropriate when presenting a bad newsletter:
- If the reason or explanation is not confidential and will not create legal liability - giving out specific information in a corporate context can result in legal liabilities that potentially cost a lot of money, therefore, it is important to carefully choose one's words, while at the same time being honest with the reader.
Answer:
a) Journal entry
Date Account and explanation Debit Credit
June 1 Cash $108,000
Notes payable $108,000
b) Adjusting entry
Date Account and explanation Debit Credit
June 30 Interest expense $360
(108,000*4%*1/12)
Interest payable $360
c) Journal entry
Date Account and explanation Debit Credit
Dec 10 Notes payable $108,000
Interest payable (360*6) $2,160
Cash $110,160
d) Total (interest expenses)
Interest payable = $360 * 6
= $2160
Answer:
D. $1 comma 000 billion increase
Explanation:
The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.
In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.
If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.
Answer:
Dr Cash $3,100,000
Cr Bonds payable $3,100,000
Explanation:
Since the bonds were issued at face value of $1000 each,the cash proceeds received from the entire issue of 3,100 bonds can be computed thus:
Cash proceeds=$1000*3,100=$3,100,000
The cash proceeds imply that cash inflows have increased by $3,100,000, as a result cash account should be debited with $3,100,00o while the same amount is credited to bonds payable since an increase in debt obligation should be a credit entry.
