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Over [174]
3 years ago
7

On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the

company on may 12. Prepare the required adjusting entry, if any
Business
1 answer:
telo118 [61]3 years ago
8 0

Answer:

<u>On April 30,</u>

Dr Attorney Fee Expense $3500

Cr Attorney Fee  Payables       $3500

<u>On May 12,</u>

Dr Attorney Fee  Payables $3500

Cr Cash Account                        $3500

Explanation:

Okay here the attorney fee is the legal fee expense that was accrued in April and must accounted for as accrued expense. The accounting entry would be increase in payables (Credit) and expense (Debit) as well.

Dr Attorney Fee Expense $3500

Cr Attorney Fee  Payables       $3500

Now on May 12, the company paid the expense which means that the legal fee payable was reduced to zero (Reduction in liabilities is always debited) and the cash is also reduced by $3500 (Asset reduction is always credited).

Dr Attorney Fee  Payables $3500

Cr Cash Account                        $3500

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If the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, th
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Answer: Increase

Explanation:

Based on the above scenario given in the question whereby when the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, then the equilibrium fed funds rate will increase.

There'll be a rise in the equilibrium fed funds since the intersection point has been raised.

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3 years ago
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $2.00 par, common shares, t
ozzi

Answer:

No journal is needed

Par value  is now $1

Explanation:

There is journal entry for stock split no new funds were received from stockholders and the fact that the equity stockholders capital remain the same after the stock split.

It is a mere book redenomination where the number of outstanding shares in issue is increased while the par value is reduced  proportionally.

In essence a stock split of 2 for 1 means one share is added to existing one and the two shares are now priced at the value of one previously

The par value after stock split=1/2*$2=$1

7 0
3 years ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.
Ostrovityanka [42]

Answer:

Depreciation Expense = $16900

Explanation:

Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.

Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.

Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900

Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.

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3 years ago
Because we often cant choose who our coworkers will be we should
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Practice working with others even if you don't fell comfortable with this person, or necessarily like them at all.
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If you get equity funding for your business, what will you have to do?
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A pay back the investors with interest I believe

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