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
bonufazy [111]
3 years ago
10

The information necessary for preparing the 2018 year-end adjusting entries for Winter Storage appears below. Winter's fiscal ye

ar-end is December 31.
a. Depreciation on the equipment for the year is $7,000.
b. Salaries earned (but not paid) from December 16 through December 31, 2018, are $3,400.
c. On March 1, 2018, Winter lends an employee $12,000 and a note is signed requiring principal and interest at 6% to be paid on February 28, 2019.
d. On April 1, 2018, Winter pays an insurance company $15,000 for a one-year fire insurance policy. The entire $15,000 is debited to prepaid insurance at the time of the purchase.
e. $1,500 of supplies are used in 2018.
f. A customer pays Winter $4,200 on October 31, 2018, for six months of storage to begin November 1, 2018. Winter credits deferred revenue at the time of cash receipt.
g . On December 1, 2018, $4,000 advertising is paid to a local newspaper. The payment represents advertising for December 2018 through March 2019, at $1,000 per month. Prepaid advertising is debited at the time of the payment.
Required: Record the necessary adjusting entries at December 31, 2018.
Business
1 answer:
natima [27]3 years ago
3 0

Answer:

Adjusting entries are entries that indicate the events of the company that have occurred but not yet recorded by the company.

a. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31         Depreciation Expenses        $7,000

2018            Accumulated Expenses                             $7,000

                 (Record depreciation on equipment )

b. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31         Salary expenses                   $3,400

2018             Salary payable                                          $3,400

             (Record salary incurred but not paid)

c. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31            Interest receivables            $660

2018               (12,000 * 6% * 11/12)

                      Interest revenue                                         $660

                     (Record of interest earned)

d. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31           Insurance Expenses             $11,250

2018              (15,000 * 9/12)

                     Prepaid Insurance                                   $11,250

                     (Record payment of insurance expenses)

e. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31.           Supplies Expenses               $1,500

2018               Supplies                                                   $1,500

                      (Record of supplies)

f. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31,          Deferred revenue               $1,400

2018              (4,200 * 2 month / 6 month)

                     Service revenue                                     $1,400

                    (Record advance payment for services provided)

g. DATE          DESCRIPTION                    DEBIT        CREDIT

Dec 31,           Advertisement Expenses    $1,000

2018               Prepaid Advertisement                          $1,000

                     (Record payment for advertisement)

You might be interested in
Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs" and has no other comments, provisions, or discuss
Ivanshal [37]

Answer:

The most probable result is that the court will declare the contract invalid and non-binding because the purchase price and important terms regarding the consideration involve are too vague and indefinite.

In order for a contract to be considered valid and binding, consideration must exist and the more precise the terms, the better. Consideration is something of value that both parties exchange. In this case it is a house vs. money, but the price is not specified.

4 0
3 years ago
A builder only has a few properties available in a development. He feels that it is no longer necessary to have his onsite sales
USPshnik [31]

Answer:

An open listing

Explanation:

In real estate an open listing is one in which the owner of a property contracts more than one agent to sell the property. The agent with the winning bid will eventually sell the property.

The opposite of this is the exclusive listing where the property owner only engages one agent to sell the property.

In the given scenario the builder feels that it is no longer necessary to have his onsite sales agent market these properties and decides to list the properties with a local brokerage firm. Thereby allowing all of the local firms to market these properties.

This is an open listing

5 0
3 years ago
The current risk-free rate of return in the economy is 1.5%. In addition, the market rate of return is currently 6%. Given that
ludmilkaskok [199]

Answer:

The company’s systemic risk level (beta coefficient) is 2.44%

Explanation:

According to Capm Expected Return of Stock = Risk Free Rate + Beta*(Market Return - Risk Free Rate)

Beta = (Expected Return of Stock - Risk freed Rate)/(Market return -Risk free Rate)

        = (12.5% - 1.5%)/(6% - 1.5%)

        =2.44 %

Therefore, The company’s systemic risk level (beta coefficient) is 2.44%

Systematic risk is the risk which affects all the stocks of the economy. It cannot be diversified away. Example interest rate and inflation in the economy. Beta represents systematic risk of the company.

7 0
3 years ago
Joe's Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective ca
Nat2105 [25]

Answer:

Design Capacity Utilization= 75%

Production efficiency = 120%

Explanation:

Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there

1. The Capacity Utilization = The Actual Output/ Design Capacity

Actual Output= 300 hamburgers a day

Design Capacity = 400 Hamburgers a day

Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100

= 75%

2. The Efficiency of the production = The Actual Output / The Effective Capacity

Actual Output = 300 Hamburgers a  day

Effective Capacity = 250 hamburgers

= 300 Hamburgers/ 250 Hamburgers x 100

= 120%

Conclusion

First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.

3 0
3 years ago
Which of these is not mentor in a letter of complaint
Nataly_w [17]

Answer:

features in the supply of goods

3 0
3 years ago
Other questions:
  • Bowers looked to the American Political Dictionary to define ‘civil rights’, which are those "positive acts of government design
    6·1 answer
  • A monopolist has the total cost function c(q) = 750 + 5q. The inverse demand function is 140 - 7q, where prices and costs are me
    10·1 answer
  • People are demanding more apartments than sellers are willing to offer. This means that there is a _____ of apartments. surplus
    13·2 answers
  • Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees.
    15·1 answer
  • Calculate Cash FlowsNature’s Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden
    15·1 answer
  • What is commercial bank? in your own words. ​
    13·1 answer
  • А.
    9·2 answers
  • Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound. Robinson's marginal utility is 30 for the last p
    8·1 answer
  • The Centers for Disease Control and Prevention (CDC) defines a healthy sleep duration
    10·1 answer
  • What are trade offs.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!