Answer:
Th answer is: C) $13,000
Explanation:
The following amounts should be allocated to trust principal:
- $7,000 from the sale of bonds; those bonds were part of the trust principal
- $6,000 of stock dividends; new shares should be added to the trust principal since no cash was received
Earnings from rent ($1,000) and interest ($3,000) should be recorded as gross income.
Answer:
The journal entries are as follows:
(i) Insurance expense A/c Dr. $160
To prepaid insurance $160
(To record the insurance expense)
Workings:
Insurance expense = cost of insurance policy ÷ 36 months
= $5,760 ÷ 36 months
= $160
(ii) Advertising expense A/c Dr. $1,160
To prepaid advertising $1,160
(To record the advertising expense)
Workings:
Advertising expense = cost of advertisement ÷ 24 months
= $27,840 ÷ 24 months
= $1,160
Answer:
yes it was correct but i was in shields and i’m going on the right now so it is a
Explanation:
Answer:
The answer is given below;
Explanation:
a. Depletion Expense for the year ($7,500,000/600,000)*100,000=$1,250,000
b. The net income and as a results retained earnings will be reduced $1,250,000
c. The mineral rights will be reported at $7,500,000-$1,250,000 =$6,250,000
