When a consumer borrows money, the lender will ask the borrower to sign:

Crestfield leases office space. On January 3, the company incurs $22,000 to improve the leased office space. These improvements

BabaBlast [244]

Answer:

Journal 1

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

Journal 2

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

Explanation:

The improvements to leased offices are of a Capital Nature. Thus thus is a capital expenditure not a revenue expenditure.

Any improvements made on the leased property belongs to the lessor and thus the lessee will still be bound by the lease period.

In the year of improvements the journals are as follows

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

A journal to record the depreciation also need to be effected

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

5 0

3 years ago

A common cost that should not be assigned to a particular product on a segmented income statement is:

Ratling [72]

Answer:

The correct answer to the following question is option B) the salary of the corporation president.

Explanation:

In the given question , all the options except option (B) , would be assigned to a particular product , while segmenting on a income statement. A product advertising cost which a company incurred while promoting the product, the direct material cost which a company while in the production of project and a production managers salary would also be included in the product cost. A corporations president who is in the higher level of management in the company, is responsible for making decisions regarding company's vision , strategy development , public relations etc , his or her salary would not be included in product cost.

6 0

3 years ago

Anthony Inc. reported net income of $270,000. Beginning balances in Accounts Receivable and Accounts Payable were $17,000 and $2

Natalka [10]

Answer:

$268,500

Explanation:

When you use the indirect method to calculate net cash flows, you start with net income and then adjust it by:

adding the amount by which accounts receivable decreased = ($17,000 - $10,500) = $6,500
deducting the amount by which accounts payable increases = ($21,000 - $29,000) = -$8,000

net cash flow from operating activities = $270,000 + $6,500 - $8,000 = $268,500

3 0

3 years ago

Which of the following are the ways that a company can finance the purchase of assets? (You may select more than one answer. Sin

erica [24]

They can sell some shares

4 0

3 years ago

What tool in Word can you use to search your entire document for spelling and grammar errors?

Sindrei [870]

Answer:

Spelling and Grammar check.

Explanation:

5 0

2 years ago