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3 years ago

Powers Rental Service had the following items that require adjustment at year-end.

Business

1 answer:

kirill [66]3 years ago

7 0

Answer:

a. Accounts Receivable (Dr.) $9,880

Sales (Cr.) $9,880

If not adjusted it will have impact on revenue in Income statement being understated and Receivables being understated in the balance sheet by the amount of $9,800.

b. Notes Receivable (Dr.) $650

Interest Income (Cr.) $650

If not adjusted this will have effect on Income statement in the incomes being understated and ultimately decrease in net income and in balance sheet it will understate the receivables (assets) by the amount of $650.

Explanation:

<u>1. Adjusting Entries </u>

a. Accounts Receivable (Dr.) $9,880

Sales (Cr.) $9,880

b. Notes Receivable (Dr.) $650

Interest Income (Cr.) $650

2. If a. is not adjusted it will result in understatement of accounts receivables ultimate effect on assets side of the balance sheet and sales (revenue) will also be understated and will have ultimate effect on income statement by the amount of $9,880.

If b. is not adjusted this will have effect on income statement in a decrease in net income and in the balance sheet receivables will be declined by the amount of $650 on the assets side.

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A reason for government involvement in a market economy is:

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Answer:

d. All of these answers are correct.

Explanation:

A market economy is where production decisions are made by the forces of demand and supply. Means of production are privately owned .

The government intervenes in a market economy for all the above stated reasons.

I hope my answer helps you.

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3 years ago

Why would expanding the nation’s communications network be considered an increase in wealth, while improving the education of it

larisa86 [58]

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3 years ago

Double-declining balance On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its

agasfer [191]

Answer:

$18,480

Explanation:

Cost of van = $51,000

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Salvage value = $4,800

Using the straight line, Annual depreciation

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Using the Double-declining balance method,

Annual depreciation = 2 × 9,240

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3 years ago

Journalize the entries to record the following:

zlopas [31]

Answer: Please see below

Explanation:

a. Journal to record the entry to establish the petty cash fund.

Account Particulars Debit Credit

Petty Cash $750

Cash $750

b. Journal to record the entry to replenish the petty cash fund.

Account Particulars Debit Credit

Office Supplies $248

Misc Selling Expense $212

Miscellaneous administrative expense, $96.

Cash Short and Over $18

Cash $574

To calculate Cash Short and Over= $750-(248+212+ 96)= 750 -556= $194

but the money in the pettycash fund On April 1 is $212.

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3 years ago

All of the following are true about the post-closing trial balance, except: a.It is prepared after posting the closing entries t

Dimas [21]

Answer:

All of the following are true about the post-closing trial balance, except:

d.It is prepared before the closing process.

Explanation:

The post-closing trial balance is rather prepared after the closing process. This is the reason it is described as a post-closing trial balance. Only permanent accounts (balance sheet) are listed on the post-closing trial balance. The post-closing trial balance ensures that the capital account is updated with the retained earnings (net income less drawings), as the case may be.

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3 years ago