Answer:
The answer is A. $ 8000 would appear on the income statement as rent revenue
Explanation:
We're dealing with financial statement, therefore we need to apply accounting principles. This income relates to the December month. The fact that only $ 5000 has been received does not reduce the income allocated to this month. This means that actual income in accounting terms is still $ 8000. The $ 5000 received will go to bank. This is not prepaid rent as the rent is due and not paid in advance. If it was paid in prior months for a later month it would be considered prepaid rent. Nor will $ 8000 appear on the statement of cashflows as only $ 5000 was received. The revenue is earned in this period, whether it is paid is not relevant to the revenue being recorded for this month.
Therefore the only logical answer is A. $8000 will appear on the income statement as rent revenue earned
Answer:
$38,440
Explanation:
Calculation to determine How much of the proceeds, if any, is taxable to Russ
Face value of policy $74,400
Less: Cash Surrender value ($24,800)
Less: Premium paid ($11,160)
Taxable Proceeds $38,440
Therefore the taxable Proceeds are $38,440.
Answer:
Journal Entries
Dr. Cr.
Sale of Merchandise
a. Account Receivable $4,240
Sales $4,000
Sales Tax Payable $240
Cost of Goods Sold $2,360
Merchandise Inventory $2,360
b. Payment of Sales Tax
Sales tax Payable $42,110
Cash $42,110
Explanation:
Sales of Merchandise increase the account receivable and tax liability as well. Inventory has been reduced by the cost of merchandise.
Tax is paid and sales tax liability is reduced along with cash.
Answer:
The correct answer is A
Explanation:
Cash payments journal is the one which records the all the cash payments which is made by the business which involve the cash purchases of equipment, merchandise, supplies and payment to creditor.
So, the note payable payment in which the cash is received is recorded in the cash payment journal and also the accrued interest.
