All categories

3 years ago

2. On January 1, 2017, Gaskin Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and

Business

1 answer:

docker41 [41]3 years ago

7 0

Answer:

(a) Debit Equipment for $300,000; Credit Cash for $50,000; and Credit Mortgage Note for $250,000

(b) Debit Mortgage Note for $13,572; Deebit Interest expense - Mortgage for $32,500; Credit Cash for $46,072.

Explanation:

(a) Prepare the journal entry for the purchase of the equipment.

The journal entries will look as follows:

Date Accounts Name and Explanation Debit ($) Credit ($)

1 Jan 2017 Equipment 300,000

Cash 50,000

Mortgage Note 250,000

(To record purchase of the equipment.)

(b) Prepare the journal entry for the January 1, 2018 mortgage payment.

The journal entries will look as follows:

Date Accounts Name and Explanation Debit ($) Credit ($)

1 Jan 2018 Mortgage Note 13,572

Interest expense - Mortgage 32,500

Cash 46,072

(To record mortgage and interest payments.)

You might be interested in

Managers take broad strategic plans and turn them into operational blueprints with specific objectives and programs. The manager

Levart [38]

Answer:

c. middle managers

Explanation:

Middle managers -

The person in the business or organisation , who is responsible to manage the subordinate level of managers and then further reports to the manager in the organization or business , is referred to as the middle manager.

The work of a middle manager is supervise the employees , and allot them the work in and then report to the senior manager , in order to maintain a proper hierarchy in the business.

hence , from the given information of the question,

The correct term is middle manager.

7 0

3 years ago

How are issues such as customer theft and spoilage addressed at year-end?

forsale [732]

In accounting, the inventory is always done annually so inventory must always be accounted for at the year end. In order to address issues such as customer theft or spoilage, you have to minus (it's market value) from the beginning inventory.

7 0

3 years ago

Barbara Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e

Amanda [17]

Solution :

Date Account Debit($) Credit($)

April 2 Cash 27,330

Equipment 14,650

Capital 41,980

April 2 No journal is required on hiring employee

April 3 Supplies 338

Accounts payable 338

April 7 Rent expense 590

Cash 590

April 11 Accounts receivable 929

Service revenue 929

April 12 Cash 3021

Unearned service revenue 3021

April 17 Cash 2535

Service revenue 2535

April 21 Insurance expense 101

Cash 101

April 30 Salary expense 1352

Cash 1352

April 30 Supplies expense 138

Cash 138

April 30 Computer 5841

Capital 5841

3 0

3 years ago

Read the section "The Effect of Price on Number of Suppliers." What support does the reading give for the idea that the music in

uranmaximum [27]

The effect of the demand and supply chain can be seen in the highly volatile nature of the music industry.

Explanation:

The principles are highly accurate for many industries that are given in the article "The Effect of Price on Number of Suppliers."

This is effectively about the demand and supply chain and one can see how this applies to the people in the music industry who have to deal with these overhauls.

The industry is largely volatile and there are trends that come and go in a couple of years and with them go away whole labels and and artist.

The people who survive are the ones that adapt and do not go all in on one trend or another.

This one can even see in other business practices.

5 0

3 years ago

Lenders reserve their lowest interest rates for

Levart [38]

Mortgage lenders prefer candidates that can prove steady employment for at least the past two years. Long periods of unemployment won’t bode well for your application, and neither will a pattern of declining earnings. In a perfect world, you have been on the same job for at least the last two years, or have made a job change to a higher paying position in that time.

8 0

3 years ago