On January 1, 2018, Wilke Corp. had 480,000 shares of common stock outstanding. During 2018, it had the following transactions t
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Answer:
Explanation:
Answer:
On Dec 31, 2012 Lee's liability would be $9,500 (principal amount) and $38 (accrued interest)
Explanation:
Lees notes:
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
First interest due = $9,500 x 8% x 45/360 = $95
On the 31st 18 days would have accrued of the 45days = 18/45 x $95 = $38
On Dec 31, 2012 Lee's liability would be $9,500 (principal amount) and $38 (accrued interest)
Debit Miranda Lee with $9,538
Credit interest on Receivables $38
Credit Account receivables account with $9,500
When the full interest became due we will pass an additional entry:
Dr. Lee with $58
Cr. Interest on receivables with $58
(Being the balance interest on receivables due )
On Jan 27 when Lee paid her interest and principal amount, we will:
Debit Account receivables with $9,500
Debit interest on receivables Account with $95
Credit Tomas account with $9,595
( being liquidation of Lee's indebtedness)
Tomas notes:
Mar 3, Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company.
Let's recognize the full interest due first:
$5,000 x 10% x 90/360 = $125
At this time we will:
Debit Tomas with $5,125
Credit interest on receivables with $125
Credit Account Receivables account with $5,000
On June 1 when Tomas paid his interest and principal amount, we will:
Debit Accounts receivable with $5,000
Debit interest on receivables with $125
Credit Tomas account with $5,125
( being liquidation of Tomas indebtedness)
Hiroshi Cheng notes:
Accepted a $2,000, 30-day, 9% note dated March 17 in granting Hiroshi Cheng a time extension on his past-due account receivable.
Interest = $2,000 x 9% x 30/360 = $15
The entries recognizing this liability will be to :
Debit Cheng Account with $2,015
Credit interest on receivables with $15
Credit Accounts receivable with $2,000
(Being receivables payable balance and interest on balance owed by Cheng)
However Cheng failed in paying up. It was decided to write off the debt.
The entries would be:
Dr. Accounts receivables $2,000
Dr. Interest on Accounts receivables with $15
Cr. Cheng's Account with $2,015
(Being debt owed by Cheng written off)
Answer:
The income before tax is $370450, the income tax is $111135 and the net income is $259315.
Explanation:
As the data table is not visible,online a similar question is found for which the data is attached here with.
From the given data
Service Revenue=$943,000
Interest Revenue=$127,1000
Total Revenue=Service Revenue+Interest Revenue=$1070100
Now The expenses are given as
Supplies Expense=$349,200
Repairs and Maintenance Expense =$258,300
Depreciation Expense=$60,350
Rent Expense=$ 31,800
Total Expense=Supplies Expense+Repairs and Maintenance Expense+Depreciation Expense+Rent Expense=$699650
So the income before tax is given as
Income=Total Revenue-Total Expense
Income=$1070100-$699650
Income=$370450
So the income before tax is $370450.
Now the tax is estimated at 30% as given tax rate as
Tax=Rate*Income
Tax=30%*$370450
Tax=$111135
So the income tax is $111135.
Now the Net income is given as
Net Income=Income-Tax
Net Income=$370450-$111135
Net Income=$259315
So the Net Income is $259315.
