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3 years ago

On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty:

Business

1 answer:

Mariana [72]3 years ago

3 0

Answer:

supplies expense 4,535 debit

supplies 4,535 credit

--to record suplpies consumption--

unearned revenue 1,050 debit

rent revenue 1,050 credit

--to record accrued rent revenue--

salaries expense 2,030 debit

salaries payable 2,030 credit

--to record accrued wages--

account receivables 18,090 debit

fees earned 18,090 credit

--to record fees performed--

dep expense 4,500 debit

accumulated depreication- equip 4,500 credit

--to record depreication for the period--

mostly, the adjusting entries are made to acknowledgethe past of time

Whie correcting entries fix erroneuos entries.

There as no mistake to amend in adjsuting entries. When we purchase the supplies and debit for 4,535

but as tiem pass we use them and know we acknowledge the amount consumed.

Explanation:

1) we subtract accounting balance with the physical count the difference si the supplies expense as those suplpies are extinguish

2)4,100 represent 4 months we divde and get the value of one month

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(Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January

Artist 52 [7]

<u>Solution and Explanation:</u>

Calculation of Minimum lease annual payments from (MLP)

Year MLP from lessor Present value Present valur of

point of view factor 8% cash flows

1 $4,703 $1 /(1.08)=0925$ $4,350.28

2 $4,703 $1 /(1.08)^{\wedge} 2=0.857$ $4,030.47

3 $4,703 $1 /(1.08)^{\wedge} 3=0.793$ $3,729.48

4 $4,703 $1 /(1.08)^{\wedge} 4=0.735$ $3,456.71

5 $4,703 $1 /(1.08)^{\wedge} 5=0.680$ $3,198.04

Total of Minimum

lease Payments $23,515 $ 18,764.97

Add

Unguaranteed

residual value(ugrv) 4000 $1 /(1.08)^{\wedge 5}=0.680$ $2,720.00

Asset to be recorded

in the books of lessor

(sum of mlp +ugrv) $27,515 $ 21,484.97

Here

Gross Investment=$27515

Lease receivable recorded in in the books of lessor(Phelps)(Mimum lease payments + Unguaranteed residual )value = $21484 $21,484

Walsh (lessee) shoiuld be recorded the amount of present value of minimum lease payments + Guaranteed Residual value=$18764.97 as asset and liabilty

b) In the books of phelps (lessor)

2017.01.01 Lease Recievble from walsh ….Dr $21,484

to Asset $21,484

(Being Lease receivable recorded )

In the books of Walsh (lessee)

2017.01.01 Asset ac ……………Dr $18,764

to Lease Liabilty(Lessor) $18,764

(Being the asset and liabilty recorded )

2017.12.31 Depreciation ……Dr 3752

to Asset 3752

(Beint Depreciation recorded charged during the year recorded 18764/5 provided for 5 years)

Here annual payment started from the at the beginning of year i.e annual lease payments start from 01.01.2018.

c) If expected residual value of $4000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books. But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $4000 $18764+2720=21484

d) If expected residual value of $3000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $3000 $18764+$2040=$20804

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3 years ago

Bogart Company is considering two alternatives. Alternative A will have revenues of $146,100 and costs of $104,400. Alternative

irinina [24]

Answer:

Choosing alternative B would increase net income by $17,100

Explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

Alternative A Alternative B Difference between A&B

Revenues $146,100 $185,900 $39800

Costs ($104,400) ($127,100) ($22700 )

Net income $41,700 $58,800 $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

4 0

3 years ago

On July 31, 2017, Crane Company had a cash balance per books of $6,355.00. The statement from Dakota State Bank on that date sho

Ivan

Question Completion:

Prepare a bank reconciliation statement as of July 31, 2017.

Answer:

<h3>Crane Company</h3>

Bank Reconciliation Statement as of July 31, 2017

Balance as per bank statement $7,905.80

Add Uncredited deposits 1,309.30

Less Checks outstanding 1,979.10

Balance as per adjusted cash book $7,236.00

Explanation:

a) Data and Analysis:

July 31, 2017:

Cash balance per books of $6,355.00

Bank statement balance = $7,905.80

Reconciling items:

1. Bank service charge$19.00

2. Direct EFT receipt $1,630.00

3. Uncredited deposits $1,309.30

4. Understated check No. 2480 $45

5. Checks outstanding $1,979.10

6. NSF charge of $685.00 (W. Krueger)

Cash Book Adjustment as of July 31, 2017

Balance as per cash book $6,355.00

add: Direct EFT receipt 1,630.00

less: Bank service charge 19.00

Understated check No. 2480 45.00

NSF charge 685.00

Adjusted Cash Book balance $7,236.00

3 0

3 years ago

According to the law of supply what's the result of an increase in the supply of workers for a job if all other factors remain e

Roman55 [17]

Answer:

According to the law of supply, an increase in the supply of workers for a job if all other factors remain equal means the company wants to be efficient and it is also proof that the company is making more profit which signals the demand for the commodities they produced as increased drastically.

Explanation:

The law of supply work in the dimension of price, the number of goods available in the market, and it is hugely affected by demand. Now, when the price of goods decreases, it makes production by producers decrease as well and staffs are also laid off to avoid profit loss by the producers. This changes when the price of commodity increases as it makes producers of the commodity have the capacity to employ more staff to maximize time and this also causes the producers to increase sales. However, the higher demand for a commodity would also increase the supply of that commodity.

6 0

3 years ago

QS 7-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $36,000, 45-day, 10% note from a customer.

asambeis [7]

Answer and Explanation:

The journal entries are shown below:

1. Interest Receivable $300($36,000 × 10% x 30 ÷ 360)

To Interest Revenue $300

(Being accrued interest revenue is recorded)

2. Cash $36,450

To Interest Receivable A/c $300

To Interest Revenue A/c $150 ($36,000 × 10% x 15 ÷ 360)

To Notes Receivable A/c $36000

(Being note maturity date it is honoured is recorded)

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3 years ago