Answer:
Land 407,000
Building 750,000
Land improvements 77,000
The company will depreicate the buildign and the land improvements
But, not the land as it doesn't suffer from the past of time.
<u>Questions:</u>
Value of the assets
and which assets will the company depreciate.
Explanation:
The demolition of the old buildign should be considered cost of the period. As no asset is improved or acquire for that event.
<u>Land:</u>
80,000 cash
320,000 note payable
3,000 deliquient property tax
<u> 4,000</u> insurance costing
407,000 total land
<u>Building:</u>
cost: 750,000
<u>Land Improvements:</u>
fence 55,000
sing at entrance 15,000
lighthing <u> 7,000 </u>
TOTAL 77,000
Answer:
Debit Rent Expense $2,000; credit Prepaid Rent $2,000.
Explanation:
Assuming On December 31, the Company's Prepaid Rent account had a balance before adjustment of the amount of $6,000 which means that if the Three months' rent was paid in advance on December 1, The adjusting entry needed on December 31 is:
Debit Rent Expense $2,000
Credit Prepaid Rent $2,000.
($6000/3month)
(To record Rent Expense)
Answer:
Explanation below
Explanation:
When organizations are looking at hiring interns, they should make sure it does not go against the laws of the Fair Labor Standards Act (FLSA) which broadly defines what it means to employ someone and remained silent regarding whether interns should be exempted from minimum wages.
FLSA provides that if your company like that of Wayne in the question, benefits from the use of interns they hired, then they must pay them a sum that is equivalent to the minimum wage.
But if the intern does not do any work that directly benefits the organization, but just there to learn and watch how things are going, then it can be justified in not paying them at all.
so Wayne's rights have been violated since the wage was below the minimum wage.
Answer:
$12,000
Explanation:
The double-declining method records a higher depreciable amount in the first years of asset life. It uses double the rate used in the straight-line method.
Using the double-declining method, the depreciation rate for Fathom will be 40 % ({1/5 x100 } )
first-year depreciation- 2018
=40/100 x $50,000
=0.4 x 50,000
=$20,000
Book value= $50,000- $20,000= $30,000
Second-year depreciation- 2019
= 40 % x 30,000
=0.4 x $30,000
=$12,000
By using the double-declining-balance depreciation amount for year two = $12,000
Answer: Option B
Explanation: In simple words, closing entries refers to the journal entries which are made at the end of an accounting period for transferring the temporary account balances into permanent accounts.
These entries are made to close the four accounts for clear depiction of capital at the end of they year, these accounts are income, expenses, income summary and dividend account.
The objective behind making such entries is to clear the temporary accounts balance to zero for the next accounting period.