What is the last step in planning your budget?

Crestfield leases office space. On January 3, the company incurs $22,000 to improve the leased office space. These improvements

BabaBlast [244]

Answer:

Journal 1

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

Journal 2

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

Explanation:

The improvements to leased offices are of a Capital Nature. Thus thus is a capital expenditure not a revenue expenditure.

Any improvements made on the leased property belongs to the lessor and thus the lessee will still be bound by the lease period.

In the year of improvements the journals are as follows

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

A journal to record the depreciation also need to be effected

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

5 0

3 years ago

Types of long term insurance offered by outsurance

SSSSS [86.1K]

The types of long term insurance offered by outsurance are :
- Death insurance
- Out of the office insurance
- Disability Cover
- Building Insurance
- Etc

hope this helps

8 0

3 years ago

Read 2 more answers

According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration i

Serga [27]

Answer:

right to the consumer.

Explanation:

According to the customer bill of rights, in this doctrine the consumers' enthusiasm should obtain adequate and compassionate deliberation in the formulation of the government strategy is identified as the right to the consumer. Proceeding from March 15 the year 1962, President John F. Kennedy portrayed a conversation to the Congress of the US in which the president extolled 4 fundamental customer powers, following described as Consumer Bill of Rights. The UN by the UN guide-manual for Consumer Protection extended those into 8 equities, and consequently, Consumers International affirmed those equities as law and began identifying on 15 of the March as World Consumer Rights.

3 0

3 years ago

Boise Timber co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe

stellarik [79]

Answer: 1,125,000

Explanation:

Break even point simply means when the total cost and the total revenue are equal.

Firstly, we need to calculate the cash related fixed cost for Boise Timber Co. This will be:

= Total fixed cost - Depreciation

= $6,000,000 - (25% × $6,000,000)

= $6,000,000 - (0.25 × $6,000,000)

= $6,000,000 - $1,500,000

= $4,500,000

The cash break-even point will be:

= $4,500,000/$4

= 1,125,000

8 0

2 years ago

The following data were selected from the records of Sykes Company for the year ended December 31, Current Year.

ololo11 [35]

Answer:

Journal Entry

A) Debit Bank 235000, Credit sales 235000

B) Debit Accounts receivable 11500 Credit sales 11500

C) Debit Accounts receivables 26500 credit sales 26500

D) Debit Sales allowance 500, Credit account receivable 500

E) Debit Accounts Receivables 24000, credit Sales 24000

F) Debit Bank 10780, Debit Sales discount 220,Credit Accounts receivable 11000

G) Debit Bank 98000, debit sales discount 2000, credit Accounts receivables 100000

H) Debit Bank 25970 Debit sales discount 530 Credit Accounts receivables 26500

I) Debit Accounts receivables 19000, Credit Sales 19000

J) Debit Sales allowance 3500 , Credit bank 3430, Credit sales discount 70

K) Debit Bank 6000, Credit Accounts receivables 6000

L) Debit Bad debts 3000, Credit Accounts receivables 3000

M) no entry, just estimate

ACCOUNTS RECEIVABLE balance at year end

opening balance 120000

B) SALES 11500

C) sales 26500

D) sales allowance (500)

E) sales 24000

F) Bank ( 10780)

discount ( 220)

G) Bank (98000)

discount ( 2000)

H) bank (25970)

discount (530)

I) SALES 19000

K) Bank (6000)

L) Bad debt (3000)

closing balance 54000

allowance for bad debt (4733)

net closing balance 49267

Allowance for doubtful debt

1 jan 8000

closing 4733

adjustment 3267 recorded in income statement as income

Explanation:

closing balance for provision of doubtful debts net sales * 1.5%

6 0

3 years ago