Answer:
See below.
Explanation:
Since the expenses are related to the formation of the business, we first capitalize these expenses and record them in our balance sheet as,
Debit Intangible Assets (Formation) by $48,500
Credit Cash/Bank by $48,500
This records an asset for the year of operation.
We amortize or depreciate these type of capitalized costs over a defined period of time. Assuming that we write off the entire cost by the end of first year we will record amortization as,
Debit Amortization expense/Income statement by $48,500
Credit Intangible Assets (Formation) by $48,500
Hope that helps.
Answer:
a. True
Explanation:
Since small business has lesser processes and paper work as compare to the larger organizations where formal procedures are in placed
If the Fed mailed everyone a $1,000, the effect would be a <u>rise in prices, </u>output, and income.
<h3 /><h3>What happens when money is injected into the economy?</h3>
The Equation of exchange is:
<em>Money supply x Velocity of money = Price level x Quantity of goods and services produced </em>
If the Money supply increases like it will when $1,000 is sent by the Fed to people, the velocity will also rise as people purchase more goods and services.
The Price level and the Quantity produced on the right side of the equation would also have to rise to match the left side. So prices would rise, and so would output.
Find out more on the equation of exchange at brainly.com/question/10110078.
#SPJ1
Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
Answer: Yes
Explanation:
The construction company is entitled to compensation because it has a property right to enter and remove minerals.
The investor gave the construction company the right to use the properties on the land, if anything would be done on the land, the construction company should be compensated because they bought the right to do business there. Since the owner granted them the sole right, they are entitled to the resources.
