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3 years ago

On January 1, Power House Co. prepaid the annual rent of $10,140. Prepare the journal entry to record this transaction.

Business

1 answer:

Ad libitum [116K]3 years ago

3 0

Answer and Explanation:

The journal entry to record the given transaction is shown below:

Prepaid rent Dr $10,140

To Cash $10,140

(Being the prepaid annual rent paid in cash is recorded)

For recording this we debited the prepaid rent as it increased the assets and credited the cash as it reduced the cash so that the proper posting could be done

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yan [13]

Answer:

Option $6,000

Explanation:

Data provided in the question:

Cost of the machine acquired = $30,000

Classified useful life = 5 years property

Now,

The MARCS rate for 5 years property, the depreciation rate is 20%

Therefore,

The depreciation for the year 2019 will be

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3 years ago

Compute the two-year nominal interest rate using the exact formula and the approximation formula for each set of assumptions lis

gregori [183]

Answer:

a) 2.5%

b) 6%

c) 3.5%

Explanation:

The Formula to be used is the <em>habitat hypothesis </em>

as stated in the document attached below

a) it = 2%; it+1 =3%

$i_{2,t}$ = 0 + ( 2 + 3 ) / 2

= 2.5% ( two year nominal interest rate )

b) it = 2%; it+1+1 = 10%

$i_{2,t}$ = 0 + ( 2 + 10 ) / 2

= 6% ( two year nominal interest rate )

c) it = 2%; 1t+1 = 3%. ∝₂,t = 1%

$i_{2,t}$ = 1 + ( 2 + 3 ) / 2

= 1 + 2.5 = 3.5%

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3 years ago

Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 200

Crank

Answer:

Dechow, Inc.

Journal Entries:

July 1, 2009: DebitCash $720,000

Debit Bonds Discount $30,000

Credit 8% Bonds Payable $750,000

To record the issuance of a 15-year bonds at 96 with semiannual interest payments.

July 1, 2016 Debit Bonds Payable $750,000

Debit Bonds Retirement Loss $27,942

Credit Unamortized discount $20,442

Credit Cash $757,500

To record the retirement of the bonds at 101.

Explanation:

a) Data and Analysis:

July 1, 2009: Cash $720,000 Bonds Discount $30,000 8% Bonds Payable $750,000 15-year bonds at 96 on July 1, 2009 with semiannual interest payments.

July 1, 2016 Bonds Payable $750,000 Bonds Retirement Loss $27,942 Unamortized discount $20,442 Cash $757,500 retired the bonds at 101.

Unamortized discount:

Discount on the bonds = $30,000 ($750,000 - $720,000)

Amortized bonds discount (9,558)

Unamortized bonds discount $20,442

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