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KengaRu [80]
3 years ago
5

Required: Journal entry

Business
1 answer:
lisabon 2012 [21]3 years ago
7 0

Answer:

If a cheque was being issued to settle a account payable, the relevant entry is to debit the accounts payable account to show that the debt is being reduced. You will then credit the cash account to show that cash is being reduced as well because it was used to pay off the debt.

Date                    Account Title                                           Debit               Credit

XX-XX-XXXX     Accounts Payable - Saurya Stores     Rs. 39,000

                           Cash                                                                            Rs. 39,000

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Answer:

Dr Bond investment   $50,000

Cr  cash                                          $50,000

Dr cash                               $1,250

Cr interest revenue                            $1,250

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cr bond investment                       $50,000

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On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.

Upon receipt of face value at redemption,the journal entry would be opposite of the initial one

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On January 2, 2020, Marigold Corp. began construction of a new citrus processing plant. The automated plant was finished and rea
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Answer:

MARIGOLD CORP

INTEREST TO BE CAPITALIZED IN THE YEAR 2020

January 2,  2020      $606,000 *10%        =         $60,600

September 1, 2020   $1,802,400*10%* 4/12  =   <u> $60,080</u>

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Explanation:

Interest to be capitalized for the year 2020 must be interest that is incurred on amount expended on the construction from amount specifically borrowed for the construction

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