Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Under the balance sheet approach, the adjusted balance of the Allowance for Doubtful Accounts should be based on the aging of the receivables. The aging of the receivables provides<span> the amount of uncollectible receivable (ending balance). Therefore, the adjusting balance of ADA would be $1,900.</span>
Answer:
a. $32,300
b. $36,300
Explanation:
The computation of the net income under each method is shown below:
a. Cash basis
Net income = Revenues - expenses
= $106,000 - $73,700
= $32,300
b. Accrual basis
Net income = (Collection - service performed collection last year + service performed) - (expenses incurred in current year - expenses incurred in last year + additional expenses incurred in current year)
=($106,000 - $25,600 + $40,700) - ($73,700 - $30,900 + $42,000)
= $121,100 - $84,800
= $36,300
Answer:
Consider the following analysis.
Explanation:
Dena owns 500 acres of farm land in southeastern Maryland.
Adjusted basis for the land is $4,80,000 and $4,00,000 mortgage on the land.
Bulding Fair market value is $9,00,000
Dena realized gain or los is $0 beacuse there is no cash recd against exchange.
So, Dena realized gai/loss is $0
So, Dena recognized gain is $4,00,000
Answer and Explanation:
The journal entries are shown below;
On March 1
Cash A/c $303,500
To Common Stock $3 Par value (44,500 × $3) $133,500
To Paid in capital in excess of par value $170,000
(Being the common stock issued is recorded)
On April 1
Cash $74,000
To Common Stock, no par value $74,000
(Being the common stock issued is recorded)
On April 6
Inventory $43,000
Machinery $155,000
To Common Stock (2,400 ×$20) $48,000
To Notes payable $93,000
To Paid in capital in excess of par value $57,000
(Being the shares are issued)