1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VMariaS [17]
3 years ago
7

For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction a

nd then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(a) On September 1, paid rent on the track facility for three months, $213,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000.
(c) On September 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On September 5, programs for 20 racing days in September, 25 racing days in October, and 25 racing days in November were printed for $3,500.
(e) The accountant for the concessions company reported that gross receipts for September were $160,000. Eight percent is due to the track and will be remitted by October 10.
Business
1 answer:
Nikitich [7]3 years ago
6 0

Answer and Explanation:

the journal entries are as follows:

a Prepaid rent $213,000

               To cash  $213,000

(To record prepaid rent)  

Adjusting entry:  

Rent expense $71,000  ($213,000 ÷ 3)  

        Prepaid rent  $71,000

(To record September rent expense)  

b Cash $840,000

         To unearned sales revenue $840,000

(To record cash received on season sales)  

Adjusting entry:  

Unearned sales revenue  ($840,000 ÷ 12)  $70,000

          Sales revenue $70,000

(To record sales revenue recognised)  

c Cash $300,000

      Note payable  $300,000

(To record note payable issued on borrowed amount )  

Adjusting entry:  

Interest expense ($300,000 × 6% ÷ 12) $1,500

         Interest payable   $1,500

(To record interest payable due)  

d Prepaid advertising 3,500

          To Cash 3,500

(To record cash paid for advertising)  

Adjusting entry:  

Advertising expense ($3,500 ÷  60) × 20 $1,167

   To prepaid advertising  $1,167

e No entry  

Adjusting entry:  

Accounte receivable ($160,000 × 8%) $12,800

        Sales revenue   $12,800

(To record amout due)  

You might be interested in
Any actions a firm takes that have the effect of reducing the level of rivalry in an industry that also do not require firms in
Elena L [17]

Answer:

tacit cooperation is the correct answer.

Explanation:

3 0
3 years ago
​Martinville, Inc. earned revenues of $ 17,000 and incurred expenses of $ 7,000. The company declared and paid cash dividends of
vladimir1956 [14]

Answer:

$10,000

Explanation:

A company's income is either shared out as dividends or kept in as retained earnings. Therefore, the total of retained earnings and dividend paid out is the net income. This is the amount that will reflect in the income statement. In other words, income is calculated first before dividends or retained earnings are declared.

For ​Martinville, income will be calculated first before dividends are paid. Net income will be

=revenue - expenses

=$17,000 -$7,000

=$10,000

Balance in the Income Summary account was $10,000

4 0
3 years ago
Budd, the purchasing agent for Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for har
Anon25 [30]

Answer:

D. Purchase orders

Explanation:

A purchase order is a document legally binding a buyer and a sellerr. It is the official confirmation of an order.

It entails the details of the items the buyer agrees to buy at a certain price, the delivery date and terms of payment for the buyer.

Purchase orders includes details such as purchase order number, the shipping date, billing address, shipping address, quantities and price.

Purchase orders are used when buyers want to purchase goods from a seller, and helps sellers to track payment. It is prepared by the buyers.

5 0
3 years ago
Navajo Corporation traded a used truck (cost $25,000, accumulated depreciation $22,500) for a small computer worth $4,125. Navaj
bulgar [2K]

Answer:

Calculation of Gain or Loss:

Book Value of Truck:

= 25,000 - 22,500

= $2,500

Gain on Exchange:

= 4,125 - 2,500 - 625

= $1,000

Therefore, the journal entry is as follows:

Accumulated Depreciation A/c Dr. $22,500

computer A/c                              Dr. $3,125

                   To Truck                                            $25,000

                   To Cash                                              $625

(To record the Truck)

6 0
3 years ago
This spreadsheet was created to track the money different employees earned in bonuses. The creator used
sergey [27]
C sorry if i am wrong
8 0
2 years ago
Other questions:
  • Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.29 times and PE ratio is 5.49 times. If Val's
    9·1 answer
  • Why do Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands?
    9·1 answer
  • Which of the following best describes the amount of money you'll have if you put $1,000 into a savings account earning 1% annual
    8·1 answer
  • Birk Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.
    15·1 answer
  • What are the five key things you must know in order to identify opportunities in your area of work?
    9·1 answer
  • What is the variable cost of sterilizing an instrument using the new equipment
    5·1 answer
  • The revenue recognition principle states that revenue: Multiple choice question. should be recorded when goods or services are p
    6·1 answer
  • Difference between credit sales and credit card sales
    9·2 answers
  • All of the following are benefits of workforce diversity except:_____.
    13·1 answer
  • how to find percentage of the portofolio must be invested in the first and second investment respectively?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!