Answer:
Accounting treatment (debit credit rules) of given entries
Explanation:
- Purchased office furniture on account Account
Furniture ie Asset increase - Debit , Creditor (Furniture Supplier) ie Liability increase - Credit
- Provided services on account
Debtor ie Asset increase - Debit , Sale ie Income increase - Credit
Prepaid Expense (Rent) ie Asset Increase - Debit. Rent paid now implies later rent ie (Expense) decrease - Credit
Nyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy
Answer:
The company's debt ratio at the end of the current year is 66%
Explanation:
For computing the debt ratio, we need to apply the formula which is shown below:
Debt ratio = (Total liabilities) ÷ (total assets) × 100
= ($182,200 ÷ $276,000) × 100
= 66%
The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.
The fourth answer is correct (D).
The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.
However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.
Answer:
January 1
Cash 614000 Dr
Notes Payable 614000 Cr
Explanation:
The Sheffield Brick Company has borrowed from the Admire county bank which means the note payable is a liability in the books of the Sheffield Brick company. As liability is increased or recorded, it is credited. The amount of liability is $614000 on the day of the issuance of note. Thus, Sheffield will credit Note payable by $614000.
The Sheffield company has received cash by signing note. As cash is an asset and it is increasing, the Sheffield company will debit cash by 614000 against the notes payable.