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timofeeve [1]
3 years ago
6

On March 1, it was discovered that the following errors took place in journalizing and posting transactions: a. The receipt of $

8,400 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned. b. The purchase of supplies of $2,500 on account was recorded as a debit to Office Equipment and a credit to Supplies. Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (b). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
Kitty [74]3 years ago
7 0

Explanation:

The Journal Entry is given below:-

a. Cash Dr,                   8400  

           Accounts receivable        8400

(Being the Cash received)

 

b. Supplies Dr,                2500  

           Office equipment         2500

(Being the reserve entry is recorded)

Supplies Dr,                             2500  

            Accounts payable           2500

(Being the supply is purchased)

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A method of accounting for uncollectible receivables in which the company estimates bad debts expense instead of waiting to see
bazaltina [42]

Answer:

The statement is True as well as correct

Explanation:

Allowance method is the financial term which is defined as the uncollectible accounts receivable procedure that reports the estimate of the bad debt expense in the same accounting or fiscal year as the sale.

Under this method, it is used to adjust the accounts receivable which appears on the balance sheet.

For example,

If the company has the credit sales of $800,000 in December and estimate that the 4% will be uncollectible. Then using this method, computing the uncollectible as:

Bad debt expense = Sales × Estimate uncollectible

= $800,000 × 4%

= $32,000

So, this estimate the bad debt expense rather than wait to see which customer will not able to collect.

5 0
3 years ago
On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased ass
nexus9112 [7]

Answer:

James Industries

The amount of the annual lease payments is:

= $207,878.86.

Explanation:

a) Data and Calculations:

Cost of equipment = $830,000

Normal sales price = $830,000

Residual value after 5 years = $200,000

Interest rate = 8%

Lease period = 5 years

From an online financial calculator:

Loan Amount  830000

Loan Term  5  years

Interest Rate  8

Results:

Payment Every Year   $207,878.86

Total of 5 Payments   $1,039,394.29

Total Interest   $209,394.29

Lease Payment Schedule:

Period    PV                      PMT                      Interest           FV

1           $830,000.00     $-207,878.86   $66,400.00    $-688,521.14

2            $688,521.14     $-207,878.86    $55,081.69  $-535,723.98

3          $535,723.98     $-207,878.86    $42,857.92  $-370,703.04

4          $370,703.04     $-207,878.86    $29,656.24  $-192,480.42

5          $192,480.42     $-207,878.86     $15,398.43  $0.00

6 0
3 years ago
Calculate the price of a two-year bond with a face value of $100, a coupon rate of 5%, and a yield-to-maturity of 5%.
aalyn [17]

The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

                      = 5×1.85941+ 100×0.90703

                       = 100

Therefore, the price of the bond is $100.

To know more about price of the bond click here:

brainly.com/question/15567868

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6 0
2 years ago
What percentage of the 27.3 million businesses in the united states are small companies with less than 500​ employees?
Strike441 [17]
<span>Of the over-27 million businesses, only 18,500 employ over 500 employees. 18,500/27.3mil = 0.0678%, so subtracting that from 100% leaves 99.9322% of all companies having a workforce under 500 employees. These are the "small businesses."</span>
3 0
3 years ago
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $
11111nata11111 [884]

Answer:

D. Less; Less

Explanation:

Given that

CPI in 2005 = 1.68

Wage in 1972 = 7200

Wage in 2005 = 30,000

CPI in 1971 = 0.418

Therefore,

Real wage in 1972 = wage in 1972/CPI in 1972

= 7200/0.418

= $17,224.88

Real wage in 2005 = wage in 2005/CPI in 2005

= 30000/1.68

=$17,857.14

Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.

6 0
3 years ago
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