Answer:
Cash (Dr.) $50,000
Lease Receivable (Cr.) $50,000
Explanation:
Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.
Answer:
<u>year 1</u>
13,900 preferred
<u>year 2</u>
23,500 preferred
<u>year 3</u>
39,100 preferred
240,900 common stock
<u>year 4</u>
preferred 25,500
common stock 404,500
<u>Total:</u>
Preferred 102,000
Common 645,400
Explanation:
85,000 x $5 par x 6% = 25,500 dividen per year
becuase the dividend is cumulative it will accumulate over time.
Also preferred stock has prefecente over common stock.
year 1 13,900 - 25,500 = 11,600 accumulated dividend for preferred stock
year 2 23,500 - 25,500 = 2000 accumulated dividend for preferred stock
year 3 280,000 - 25,500 = 254,500 dividend for previous year preferred stock
254,500 - 2000 - 11,600 = 240,900 dividends for common stock
year 4 430,000 - 25,500 = 404,500 dividends for common stock
year
Answer:
C) a debit to Merchandise Inventory and a credit to Accounts Payable
Explanation:
The journal entry to record the purchase of inventory on account by using the perpetual inventory system is shown below:
Merchandise Inventory A/c Dr XXXXX
To Accounts Payable A/c XXXXX
(Being merchandise is purchase on credit)
Simply we debited the merchandise inventory account and credited the account payable account so that the correct posting can be done.
Answer:
a misstatement of cash receipts will result in a misstatement of accounts receivable.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Basically, financial statements are formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet.
2. Cash flow statement.
3. Income statement.
4. Statement of changes in equity.
A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.
Some examples of current assets are account receivables, marketable securities, cash equivalent, etc.
In Financial accounting, there exist a significant level of interaction between cash receipt transactions and accounts receivable because a misstatement of cash receipts will result in a misstatement of accounts receivable, which gives information about legally enforceable monetary claims that are to be recovered by a company from a customer who is yet to make payment.
