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xeze [42]
3 years ago
12

purchased decorating machine for $430,000 on January 1, 2020. depreciates machines of this type by the straight-line method over

a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Fireworks discovered the error on January 1, 2021. The journal entry to correct this error would be:
Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

The journal entry to correct this error would be:

Debit : Retained Earnings $86,000

Credit : Machine $86,000

Explanation:

Straight line method charges a fixed amount of depreciation using the formula :

Depreciation expense = (Cost - Residual Value) ÷ Estimated useful life

thus,

Annual Depreciation expense = $430,000 ÷ 5

                                                   = $86,000

To correct the error :

Reduce the Retained Earnings amount (<em>were depreciation expense lies</em>) and Reduce the Asset Balance (<em>a fall in value</em>) with the amount of depreciation.

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If bonds are issued at a premium, the stated interest rate is a.higher than the market rate of interest b.too low to attract inv
worty [1.4K]

Answer:

a.higher than the market rate of interest

Explanation:

If bonds are issued at a premium, the stated interest rate is <u>higher than the market rate of interest.</u>

- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.

- This happens because the demand for the bind is high in the market.

- The demand is high because the company offers higher interest rate as compared to market interest rate.

- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.

5 0
3 years ago
Of the following sets of accounting entries, which one correctly records the purchase of a piece of equipment? A : a $15,000 inc
Butoxors [25]

Answer: The correct answer is  B : a $5,000 decrease in cash, a $15,000 increase in notes payable, and a $20,000 increase in equipment, all entered on the same date.

Explanation: The option B is correct because we are accounting for a purchase of a piece of equipment. The options in the questions show that the purchase was partly through cash and partly through notes payable. Since that is the case, the appropriate entries should record a cash outflow (credit to cash to decrease it), increase in notes payable as a result (credit to notes payable to increase) and subsequently, increase in equipment (debit to equipment). <em>So, the total credits equal the total debit.</em>

<em />

3 0
3 years ago
a property manager has just started working for a new property owner who owns a small apartment building. the property manager l
ivolga24 [154]

Competitive analysis includes investigation into competing properties.

A property manager's most obvious job is finding tenants for rental properties. Property managers are responsible for viewing prospective tenants, conducting credit and reference checks on applicants, and coordinating the move-in process.

The most common examples of blockbusting include: There is something making door-to-door phone calls asking neighborhood members to sell them before their property values ​​plummet. When.

In the absence of an Agency Agreement, analysis of your obligations to Buyers includes honesty, fairness, and proper accounting of funds. You are under no obligation of loyalty or confidentiality and cannot represent the purchaser. To obtain the maximum benefit of the property as directed by the owner.

Learn more about analysis at

brainly.com/question/890849

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4 0
1 year ago
Suppose there are five suppliers of ice cream in the town of Summerville. When the price of ice cream is $2 per scoop, Firm A is
victus00 [196]

Answer:

the market quantity supplied is less than 250 scoops when the price is $2 per scoop

Explanation:

When price is $2, the total quantity supplied = 20 + 50 + 35 + 100 + 40 = 245

At the price $2, the total quantity supplied is less than 245

3 0
3 years ago
Which careers are apart of the Finance career cluster?
elena-s [515]

Answer:

D, most likely

Explanation:

3 0
3 years ago
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