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3 years ago

(Adjusting Entries) The accounts listed below appeared in the December 31 trial balance of the Savard Theater.

Business

1 answer:

Nostrana [21]3 years ago

8 0

Answer:

1) The equipment has an estimated life of 16 years and a salvage value of $24,000 at the end of that time.

depreciation expense per year = ($192,000 - $24,000) / 16 = $10,500

Dr Depreciation expense 10,500

Cr Accumulated depreciation 10,500

2) The note payable is a 90-day note given to the bank on October 20 and bearing interest at 8%.

using a 360 day year, accrued interest = $90,000 x 8% x 72/360 days = $1,440

Dr Interest expense 1,440

Cr Interest payable 1,440

3) In December, 2,000 coupon admission books were sold at $30 each and recorded as Admissions Revenue. They could be used for admission any time after January 1.

Dr Admissions revenue 60,000

Cr Deferred revenue 60,000

4) Advertising expense paid in advance and included in Advertising Expense $1,100.

Dr Advertising expense 1,100

Cr Prepaid advertising expense 1,100

5) Salaries and wages accrued but unpaid $4,700.

Dr Wages expense 4,700

Cr Wages payable 4,700

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Here, the incentive is the amount of money allotted for prize. Student knows that entry fees is $10 each. If a student scores A grade, then the maximum amount he can get from prize is $100, which is greater than the entry fees of the contest. So, there is a incentive for the students to score grade 'A'.

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Suppose Piranha.com sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbo

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Answer:

The journal entries are as follows:

(1) (i) On October 10, 2018

Merchandise inventory A/c (3,500 × $17) Dr. $59,500

To Accounts payable (Piranha) $59,500

(To record the purchase of books)

(ii) On October 13, 2018

Accounts payable A/c (100 × $17) Dr. $1,700

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(To record the purchase return of book)

(2) (i) On October 10, 2018

Accounts receivable A/c Dr. $59,500

To sales

(To record the sales of book)

Cost of goods sold A/c Dr. $35,700

To merchandise inventory $35,700

(To record the cost of goods sold of book)

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Sales return and allowances A/c Dr. $1,700

To accounts receivable $1,700

(To record the sales return of book)

Merchandise inventory A/c Dr. $1,020

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4 years ago

How can you know if it's a good time to start your business?

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Answer:

The good time to start your business is when When the economy is strong

<u>Explanation:</u>

Beginning a business is like starting a relationship; the appropriate time to establish a business is the point at which you have the opportunity to give your consideration about the business. The best time for beginning a company should not be affected by one’s age.

Individuals of all ages can start a business, and you might be astounded to realize that most entrepreneurs in the US are more seasoned; 51% of proprietors of independent companies have many years of operations and still successful.

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3 years ago

The cash basis method of accounting requires revenue to be recognized when performance obligations are satisfied. (If false, ide

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Answer:

True

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3 years ago

Bond prices depend on the market rate of interest, stated rate of interest, and time. Determine whether the following bonds pa

Aleksandr-060686 [28]

Answer:

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Bonds issued at discount because market rate is higher than the bond's coupon rate.

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