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3 years ago

Pina Colada Corp. has the following transactions during August of the current year.

Business

1 answer:

const2013 [10]3 years ago

3 0

Answer and Explanation:

The indication of the basic analysis and the debit credit analysis is as follows;

Date Basic Analysis Debit - Credit Analysis

Aug. 1 The asset Cash is increased; Debits increase assets;

the stockholders' equity account Debit Cash

Common stock is increased. $10,880

Credits increase stockholders' equity

Credit Common stock

$10,880

Aug. 4 The asset Prepaid Insurance Debits increase assets;

is increased; Debit Prepaid Insurance

the asset Cash is decreased. $ 1,500

Credits decrease assets;

Credit Cash

$ 1,500

Aug. 16 The asset Cash is increased; Debits increase assets;

the revenue Service revenue Debit Cash

is increased. $880

Credits increase revenues:

Credit Service revenue

$880

Aug. 27 The expense Salaries expense Debits increase expenses:

is increased; Debit Salaries expense

the asset Cash is decreased. $680.

Credits decrease assets:

Credit Cash

$680

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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

Nady [450]

Answer:

$14,960

Explanation:

Pay $22,000 bill in December:

$22,000 tax deduction × 32%marginal tax rate = $7,040 in present value tax savings.

After-tax cost= Pretax Cost − Present Value

Tax Savings= $22,00 − $7,040

= $14,960

Therefore the after-tax cost if she pays the $22,000 bill in December will be $14,960

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3 years ago

Read 2 more answers

Possible losses due to negligence resulting in bodily harm or property damage to others are called ____________ risks.

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Possible losses due to negligence resulting in bodily harm or property damage to others are called B.) LIABILITY risks.

Liability is an obligation that you must do or must pay for.

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3 years ago

The Mateo Corporationâs inventory at December 31, 2018, was $325,000 based on a physical count priced at cost, and before any ne

Oliga [24]

Answer:

The correct answer to the following question is $405,000 .

Explanation:

Given information -

Mateo corporations inventory on 31, December 2018 - $325,000

Merchandise costing , shipped from a vendor on December 30, but was received on January 5, 2019 - $30,000

Merchandise costing, destination from a vendor on December 28, 2018, but was received on January 3, 2019 - $22,000 .

Merchandise costing, shipped to a customer on December 28, arrived at customers location on January 6, 2019 - $38,000

Merchandise costing, held on consignment by Traynor company - $12,000

Mateo corporations inventory as on 31 December 2018 -

$325,000 + $30,000 + $38,000 + $12,000

= $405,000

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3 years ago

The estimated amount of depreciation on office equipment for the current year is $3,500. the correct adjusting entry to journali

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The correct adjusting entry to journalize this depreciation is a debit to Depreciation Expense for $3,500 and a credit to Accumulated Depreciation for $3,500.

What is a depreciation?

In accounting, this refers to the monetary value of an asset that decreases over time due to use, wear, tear etc.

As we are given that the estimated amount of depreciation on office equipment for the current year is $3,500, then, the correct adjusting entry to journalize this depreciation is a debit to Depreciation Expense for $3,500 and a credit to Accumulated Depreciation for $3,500.