D) Checkabe Deposits are assets for the bank
Answer:
So the depreciation in year 1 is $95,000
Explanation:
Depreciation is the accounting method that is used to allocate cost of an asset over its useful life. It is assumed that an asset losses values over a period and the salvage or terminal value is the value of the good after its useful life has ended.
Straight line method of depreciation assumes equal allocation of depreciation expense over the useful life of an asset.
In the given the asset value is $570,000 and the terminal value is $0
Using the formula
Depreciation= (Value of asset- Salvage value)/Number of useful years
Depreciation= (570,000-0)/6
Depreciation= $95,000 paid equally for 6 years
So the depreciation in year 1 is $95,000
Answer:
Salaries and Wages are owed so they are now liabilities. They are also expenses and will reduce the Net Income.
Rent Revenue was in advance for 2 months meaning one of those months will be December which is in the current period so;
= 7,520/2
= $3,760 will be added to net income for the year
The same amount will be removed from Liabilities as the revenue has now been recognized.
Depreciation reduces the value of Fixed assets so will be deducted from Assets.
It is also an expense so it will reduce Net Income.
Whatever happens to Net Income will happen to Stockholders' equity as well because Net Income is an Equity account.
The evaluating alternatives part of the decision-making process!
Answer:
Days of receivable will be 75 days
Explanation:
We have given net credit sales = $1200000
Net account receivable at the beginning = $290000
And receivable at the ending = $201000
Average receivable 
Now receivables turnover ratio 
Days of receivables = 