Answer:
A debit to pension expense for $10,000
Explanation:
Journal Entry for pension expenses:
Explanation Debit Credit
Pension Expense $10,000
Cash $10,000
(To record pension expenses)
Pension expenses for the year ended is comprised of the following components of pension cost.
Service Cost 14,000
Interest cost 6,000
Expected return on (10,000)
plan assets _______
Pension expenses <u> $10,000</u>
Answer and Explanation:
According to the given situation, the income statement and balance sheet as per parts is shown below:-
<u>Accounts Account Title Financial statements </u>
<u>For Part A</u>
Debit Accounts receivable Liability account Balance sheet
Credit Consulting service Income statement
revenue
<u>For Part B</u>
Debit Interest receivable Liability account Balance sheet
Credit Interest revenue Income statement
<u>For Part C</u>
Debit Accounts receivable Assets account Balance sheet
Credit Service Revenue Income statement
<u>For Part D</u>
Debit Janitorial expense Income statement
Credit Janitorial expense Liability account Balance sheet
Payable
<u>For Part E</u>
Debit Rent expenses Income statement
Credit Rent expenses Liability account Balance sheet
payable
Answer:
77.27% or
(17/22)%
The loan will accepted
Explanation:
property value 550,000
haircut 125,000
550,000 - 125,00 = 425,000 mortage value
425,000/550,000 = 77.27% = (17/22)%
The ratio is below the cutoff, so it is within the boundaries the lender expect. The loan will be given.
Answer:
Expenses ; revenues ; adjusting
Explanation:
According to the expense recognition or matching principle, the expenses that are incurred in a particular period should be matched with the revenues that are earned in that particular period.
This principle major part is of the adjustments so that the adjustment entries are passed so that the financial statements represents the true and fair view to the users of the accounting information
Answer:
Expenditures of $12,000 and a $12,000 prepaid asset
Explanation:
Since only half of the policy has been consumed (or accrued), then half of the premium must debited to expenditures, which is similar to debiting insurance expenses on a private company. Since half of the prepaid insurance asset has been used during this year, the account must be reduced by crediting it (same as recording for a private business).
