Answer:
A. $950
Explanation:
Proper documentations of payments, purchases and income in any company is very necessary for growth.
From the question, the following transaction occured:
- March 3 => a desk was purchased for $450
- March 22 => another desk was purchased for $500
- March 24 => $400 was paid on account.
To know the amount that ABC should report for desks, the two transaction for desk should be summed and the result will be the amount that should be recorded.
Therefore,
$450 + $500 = $950.
This investment is an example of a managerial decision. This process is done to aid the executives to be able to make the best possible decision that is needed by the business at that certain point of time. There are five steps that is involved in a managerial decision making. First would be establishing what is the main objective of the business. Then, like any other decision process, defining the problem and its the nature at that certain time is next. The third step would be listing all possible solutions present. Then, evaluating each possible solution listed. Listing all pros and cons would be recommended. In this step, we look at which would be the most favorable solution. The last step would be the implementation of the solution chosen.
Answer:
(C) How much debt does clip joint company already have?
Explanation:
Bond investors are more likely to ask a bond issuer (the company issuing the bonds) its current level of debt before investing. This information is important as it informs the order that the current bond holders will occupy in a repayment hierarchy if the company was unable to pay back the debt and it needs to be liquidated.
Answer:
d. Prepaid insurance $3,675, and Insurance expense $525.
Explanation:
Preparation of the journal entry to determine which of the following account balances are correct after adjusting entries have been made
Based on the information given the account balances that are correct after adjusting entries have been made will be PREPAID INSURANCE $3,675, and INSURANCE EXPENSE $525.
First step is to calculate the amount the company pay per month
Amount pay per month=$4,200/24 months
Amount pay per month = $175 per month
Last step
Since Three months have been used which are October, November, and December which means that $175 per month × 3 months = $525 which will be recorded as INSURANCE EXPENSE while the balance in PREPAID INSURANCE will be $4,200 - $525 = $3,675
Answer:
d. Debit advertising expense $350, credit accounts payable $350
Explanation:
The advertising expense should be recognized when the economic event occurs, in this case recibing the bill, independently of its payment. This is done with a debit because expenses increase by debits. The credit account is a liability: account payable, which represents an increased on liabilities.
