Answer:
1 Depreciation expeense (Debit) $4,200
Accumulated depreciation (Credit) $4,200
2.Bad Debt expense (Dr.) $6,900
Accounts Receivables (Cr.) $6,900
3. Accrued Interest Expense (Dr.) $1,200
Notes Payable (Cr.) $1,200
4. Accrued Income Tax (Dr.) $14,200
Cash (Cr.) $14,200
5. Cash (Dr.) $4,200
Redemption of Gift Cards (Cr.) $4,200
Explanation:
Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.
Answer:
48,000
56,000
the unit of production method
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($300,000 - $20,000) / 10 = $28,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation in 2021 = 2/10 x $300,000 = $60,000
Book value in 2022 = $240,000
Depreciation in 2022 = 48,000
Unit of production = number of hours in 2022 / total number of hours) x (cost of asset -- savlage value)
Tap & go turns a smart phone into a wallet. This technology allows vendors to accept credit cards in "contacless" way. Credit card companies and technology companies embrace this and it is expected to grow.
Answer:
Option (c) is correct.
Explanation:
Interest expense on Nov 30, 2016:
= (Purchase amount × Rate of interest) ÷ No. of months in a year
= ($288,000 × 12%) ÷ 12
= $2,880
Principal repayment on Nov 30, 2016:
= Monthly payment - Interest expense on Nov 30, 2016
= $25,588 - $2,880
= $22,708
Interest expense on Dec 31,2016:
= (Purchase amount - Principal repayment) × Rate of interest] ÷ No. of months in a year
= ($288,000 - $22,708) × 12%] ÷ 12
= $2,653
Therefore,
Interest expense for the year ended December 31, 2016:
= Interest expense on Nov 30, 2016 + Interest expense on Dec 31,2016
= $2,880 + $2,653
= $5,533
Answer:
How often, on average, receivables are received and collected during the period
Explanation:
An account receivable is an accounting entry that measures the amount which a firm or organization will receive soon that is not paid yet by the customers. Likewise, account receivable turnover measures the average amount received and collected in a particular period. It helps to understand the average receivable amount and what must be changed to improve it.
