1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pickupchik [31]
3 years ago
11

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's an

nual accounting year ends on December 31. On September 1 of the current year, Zimmerman collected six months' rent of $9,600 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $9,600. On October 1 of the current year, the company borrowed $18,000 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date. Depreciation of $3,500 must be recognized on a service truck purchased in July of the current year at a cost of $22,000.
Business
1 answer:
Nina [5.8K]3 years ago
4 0

Answer:

prepaid rent 6,400 debit

      rent revenue     6,400 credit

--to record accrued rent revenue--

interest expense      540 debit

      interest payable                540 credit

--to record accrued interest on the note--

depreciation expense 3,500 debit

  accumulated depreciation-truck     3,500 credit

--to record the depreciation on company's truck--

Explanation:

<u>earned rent:</u>

9,600 for six months: 9,600 / 6 = 1,600 dollars per month

months from September 1st to December 31th: 4 months

earned rent revenue: 1,600 x 4 = 6,400 dollars

<u>interest acrued on the note:</u>

principal x rate x time

18,000 x 0.12 x 3/12 = 540

we ddebit the expense and credit the payable

<u>depreciation:</u>

for the amount stated we debit the expense and credit the accumulated depreciation

You might be interested in
What are the characteristics of a mixed economy?
Oxana [17]
A characteristics of a mixed economy is a mix of both private and government control.
7 0
2 years ago
If a county government decided to build parks, then the money and resources would not be available for additional fire fighters.
Keith_Richards [23]

Answer:

a. Misallocation of resources

Explanation:

Misallocation of resources implies that assets are not put to their best, best, or proficient use. The utilization of the term misallocation in financial matters is that market analysts recognize two kinds of efficiencies: productive and allocative. The productive alludes to the (effective) utilization of assets to deliver given merchandise and ventures. The allocative alludes to which merchandise and enterprises ought to be created, and who ought to get the opportunity to devour them. Financial matters are generally worried about allocative thought of productivity.

3 0
2 years ago
Which statement about journal entries in QuickBooks Online is true?
IgorLugansk [536]

Answer:

C. Your client can’t create an Adjusting Journal Entry.

Explanation:

In QuickBooks Online Accountant you (the accountant) make the adjusting journal entries, not your clients. It is like saying that you operate yourself while your doctor drinks coffee besides your bed.

the other options are wrong:

A. A Journal Entry cannot be used to account for depreciation of an asset.  ⇒ FALSE, QuickBooks doesn't automatically depreciate an asset, the user must do this through journal entries.

B. The Accountant user can’t create an Adjusting Journal Entry in QuickBooks Online.  ⇒ FALSE, when using QuickBooks Online Accountant you can create adjusting entries just like any other regular entry.

7 0
3 years ago
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
guajiro [1.7K]

Answer:

Net account receivable

2021 $8,085

2022 $5,335

Explanation:

Calculation for the net account receivable

2021 2022

Total account receivable 14,700 9,700

(33,200-18,500=14,700)

(48,200-38,500=9,700)

Less: Allowance for doubtful accounts (6,615) (4,365)

(45%*14,700=6,615)

(45%*9,700=4,365)

Net account receivable 8,085 5,335

(14,700-6,615=8,085)

(9,700-4,365=5,335)

Therefore Net account receivable will be :

2021 $8,085

2022 $5,335

6 0
3 years ago
Big-Mouth Frog Corporation had revenues of $200,000, expenses of $120,000, and dividends of $30,000. When Income Summary is clos
Aleksandr-060686 [28]

Answer:

Credit of $80,000

Explanation:

Big-Mouth Frog Corporation Calculation for Retained earnings

Using this formula

Retained earnings =Revenue- Expenses

Where,

Revenue =$200,000

Expenses =$180,000

Let plug in the formula

Retained earnings =$200,000-$180,000

Retained earnings =$80,000

Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000

6 0
2 years ago
Other questions:
  • The possibility that the failure of one bank can hasten the failure of other banks is called the:
    15·1 answer
  • i'm doing a speech about why people give up and why they shouldnt give up what should my attention getter and my main points be?
    6·1 answer
  • Great Southeast ​Company's Cash account shows an ending balance of $ 720. The bank statement shows a $ 26 service charge and an
    9·1 answer
  • Whats an acrostic poem for economic
    7·1 answer
  • Prepare an adjusted trial balance as of December 31. (Enter your answers in thousands of dollars.) MINT CLEANING INC. Adjusted T
    7·1 answer
  • Corcoran Corp. pays a constant $7.10 dividend on its stock. The company will maintain this dividend for the next 10 years and wi
    9·1 answer
  • You are starting the four-year college education today, and you are worried if you have enough money in your account for tuition
    10·1 answer
  • John R. Park was president of Acme Markets, Inc., a national food chain headquartered in Philadelphia with 36,000 employees and
    8·1 answer
  • What will a bank do in order to ensure you are responsible?
    6·1 answer
  • Why are foresight and follow-through important when applying the quantitative reasoning process?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!