Answer:
North Star
Adjusting Journal Entries:
December 31:
Rent Expense $1,280
Prepaid Rent $1,280
To accrue rent for the period.
Depreciation Expense $1,080
Accumulated Depreciation $1,080
To accrue Depreciation charge for the year.
Utilities Expense $9,800
Utilities Payable $9,800
To accrue unpaid utilities.
Income Tax Expense $470
Income Tax Payable $470
To accrue income tax liability.
Explanation:
Adjusting entries are journal entries that are made at the end of an accounting period to ensure that all expenses and incomes pertaining to the period are recognized in accordance with the accrual concept and the matching principle. These accounting concepts require that all expenses incurred whether paid for or not and income whether received or not, which relate to the period, are matched respectively.
Answer:
I.Communicates business activities
II.Identifies business activities
III.Records business activities
IV.Helps people make better decisions
Explanation:
Accounting is an information measurement system that identifies business activities, records the business transactions as they occur, in order in which they occur, communicate the result of operations to interested parties which helps all the stakeholders make informed decision.
The main goal of accounting information is to communicate the true and fair view position of the entity to people that may want to make informed judgment on the entity.
Answer:
b. <em> </em>Additional paid-in capital is decreased
Explanation:
The entry to record acquisition and retirement is:
Debit Credit
Common stock $1
Paid-in capital—excess of par $34
<em> Paid-in capital—share repurchase $5</em>
Cash $30
<em>Conclusion: </em>Additional paid-in capital is decreased.
Answer:
Please see below and attached.
Explanation:
1a. Prepare a contribution format income statement for the game last year. The Net operating income is $90,000.
1-b The degree of operating leverage
= $10.
2a. Net operating income increases by 220%
2b. Total expected net operating income is $288,000.
Please find attached detailed breakdown of the answers provided above
<span>The journal entry to record the initial write-off includes is allowance for doubtful accounts. Allowance for doubtful accounts is a contra account to accounts receivable, and therefore has debit balance. It also needs to be diminished because you already used the bad debt when you make the allowance.</span>
