Answer:Wouldn't this count as cheating If someone found out?????
Answer and Explanation:
The journal entries are shown below:
a. Deferred revenue Dr ($3,750 ÷ 3 months) $1,250
To Revenue $1,250
(Being the revenue of three month is recorded)
b. Advertising expense Dr ($2,550 × 10 ÷ 30) $850
To Prepaid advertise $850
(Being the advertising expense is recorded)
c. Salary expense Dr $7,500
To Outsanding salary $7,500
(Being the salary expense is recorded)
d. Interest expense Dr ($65,000 × 6% × 4 months ÷ 12 months) $1,300
To Accrued interest $1,300
(being the interest expense is recorded)
The four months is taken from August 31 to December 31
Answer:
<u>Unfortunately, like Monica had no earned income and they're filing jointly, Roy and Monica can't claim the credit. The correct answer is B. US$ 0.</u>
Explanation:
1. Let's review the information given to us to answer the question correctly:
Roy and Monica are married and will file a joint return.
While Roy works and Monica looks for work, Rachel stays at Wee Care.
Amount paid by child care in 2011 = US$ 1,500
Roy's earned income = US$ 24,000
Monica's earned income = US$ 0
2. What is the amount of their child and dependent care credit?
IRS, on publication 503, related to Child and Dependent Care Expenses is crystal-clear. Taking from the official document, "You Must Have Earned Income
. To claim the credit, you (and your spouse if filing jointly) must have earned income during the year."
<u>Unfortunately, like Monica had no earned income and they're filing jointly, Roy and Monica can't claim the credit.</u>
