Answer:
Amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts payable are basically short term debts that a company has with its suppliers. E.g. a retailer purchases goods from a wholesaler on terms n/30. In this case, the accounts payable would be the amount of money owed to the retailer. There is no specific time frame for an accounts payable, since it varies depending on the credit that the supplier gives. E.g. sometimes a supplier will sell on a 45 day credit period, or even 60 day period.
The main sources of funding are retained earnings, debt capital, and equity capital. Companies use retained earnings from business operations to expand or distribute dividends to their shareholders. Businesses raise funds by borrowing debt privately from a bank or by going public (issuing debt securities).
<span>As people generally become apprehensive about investing and taking risks during recession, the interest rates should be decreased in order to spur economic growth. Since the demand has decreased, the interest rates also need to decrease in order to stimulate the economy and not let it stagnate.</span>
Answer:
Office Supplies T-account
<u>Debit :</u>
Beginning Balance $600
Purchases $2,300
Totals $2,900
<u>Credit:</u>
Ending Balance $500
Used (<em>Balancing Figure</em>) $2,400
Totals $2,900
Adjusting Entry
Supplies Expenses $2,400 (debit)
Office Supplies $2,400 (credit)
Posting Entries.
1. Supplies Expense = $2,400 (Debit Balance)
2.Office Supplies = $500 (Debit Balance)
Explanation:
As the supplies are used during the period, recognize an expense : Supplies Expense and de-recognize the Office Supplies Asset account to the extend of the amount of inventory used during the period.
In other words we are taking out an expense (Increasing it) and decreasing an asset : Office Supplies.
Answer:
Deferred Tax Asset:
The amount of taxes that is paid or carried forward but not yet identified in the income statement is referred as deferred tax asset
Journal Entries:
Debit: Income Tax Expense (balancing amount) = 812,500
Debit: Deferred Tax Asset = 87,500
Credit: Income Tax Payable = 900,000
- Income tax expense reduces the stockholders. equity. Hence, debit income tax expense with $812,500
.
- Deferred tax asset is an asset and is increased by $87,500. Therefore, debit deferred tax asset account with $87,500.
- Income tax payable increases the liability by $900,000. Therefore, credit Income tax payable account with $900.000.
Working note:
Determine the amount of deferred tax asset.
Deferred tax asset = Rent collected in 2021 × Enacted tax rate
Deferred tax asset = $350,000 × 25%
Deferred tax asset = $87,500
Determine the amount of income tax expense.
Income tax expense = Income tax payable — Deferred tax asset
Income tax expense = $900,000 = $87,500
Income tax expense = $812,500
