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Sonja [21]
3 years ago
9

On January 1, 2019, Mitchell Company leases equipment from Donelson Corp. for the equipment's entire useful life of six years. D

anelson acquired the asset for $239,826 and normally utilizes an 5% interest rate for these types of transactions. The annual lease payment is $45,000, and the first payment is made at the inception of the lease. Donelson should record which of the following in connection with the second payment?
1. Debit to interest expense of 11,991.
2. Credit to interest revenue of 11,991.
3. Debit to lease payable of $35,259.
4. Credit to lease receivable of $35,259.
Business
1 answer:
Margarita [4]3 years ago
7 0

Answer:

d. Credit to lease receivable of $35,259

Explanation:

Date    General Journal                Debit     Credit

           Cash                                 $45,000  

                 Lease receivable                      $35,259

                 ($45000 - $9741)

                Interest expense                       $9,741

                [($239826-$45000)*5%]

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In terms of total dollars in the state budget, the various service charges and fees in Texas provide 15 percent of total state revenue.

<h3>Texas State Budget</h3>
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  • Texas' Automated Budget and Evaluation System (TBS) pulls its data from the LBB (ABEST). Users have the option to create budget reports for a particular state agency.
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5 0
2 years ago
Jones corp. reported current assets of $187,000 and current liabilities of $132,000 on its most recent balance sheet. the curren
Lemur [1.5K]

Hello!

acid-test (quick) ratio=(Cash+short term investments+accounts receivable)÷current liabilities

acid-test (quick) ratio is
(63,200+44,800)÷132,000=0.8182

0.8182×100=81.82%

Good luck!

8 0
4 years ago
A law firm received $2,500 cash from a client for legal services to be rendered in the future. The full amount was credited to t
Savatey [412]

Answer:

D.

Revenues to be understated

Explanation:

Understated amounts indicate a reported amount is not correct and the reported amount is less than the true amount.

5 0
3 years ago
If purchasing power parity holds, when a country's central bank decreases the money supply, its:_____.
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If purchasing power parity holds, when a country's central bank decreases the money supply, its <u>If purchasing power parity holds, when a country's central bank decreases the money supply, its price level (rises/falls) and its currency (appreciates/depreciates) relative to other currencies in the world. </u>

A theory of exchange rate determination and a means to compare average prices of goods and services between nations is purchasing power parity (PPP).

According to the hypothesis, fluctuations in the spot exchange rate are caused by importers' and exporters' actions, which are prompted by variations in prices across nations.

Alternatively, PPP contends that changes to a nation's current account may have an impact on the value of the currency's exchange rate on the foreign exchange (Forex) market.

In contrast, the interest rate parity theory postulates that fluctuations in the exchange rate are caused by investor actions (whose transactions are reported on the capital account).

The "law of one price" as it pertains to the overall economy is the foundation of PPP theory.

Hence, option A and D is correct.

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8 0
2 years ago
5. Todd has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,
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Answer:

Explanation:

a). The highest point of the house was hurt. It will be made sure about under Part A . The most outrageous proportion of game plan is $120,000. The cash estimation of hardship is $10,000. In this manner, the dollar whole receivable for adversity is $10,000.  

b). The damage of window of the parlor will be made sure about under Part A course of action. The cash estimation of the damages is $400. From this time forward, the dollar proportion of mishap payable is $400.  

c). The damages on account of impact of water radiator will be made sure about under Part C, singular property hurt. The most outrageous proportion of hardship will be half of inclusion A. The most extraordinary proportion of consideration will be $60,000 (half of $120,000). In any case, the genuine cash estimation of the incident is $2,000. In this way, the dollar proportion of setback will be $2,000

3 0
3 years ago
Read 2 more answers
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