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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.)

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In modifying the market, Johnson and Johnson increased the consumption of the current product.

<h3>What is market modification?</h3>

Market mofification can be defined as the way in the a manufaturer target the market so as to attract potentials customers.

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Therefore in modifying the market, Johnson and Johnson increased the consumption of the current product.

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2 years ago

The infographic suggests making small payments on your student loans even before they’re due, yet that won’t automatically get y

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The benefit that a student can obtain by paying off his student loan before the due date is that his debt is diminishing.

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3 years ago

The following account balances were taken from the 2021 post-closing trial balance of the Bowler Corporation: cash, $9,500; acco

Pavlova-9 [17]

Answer:

$196,000

Explanation:

The question is to prepare the balance sheet of Bowler Corporation as at the end of 2021.

Balance Sheet is generally divided into Assets side (Non-Current and current) Liabilities (non-current and current) and the Stockholders equity. A good balance sheet should be as follows Asset= Liabilities + Equity

Bowler Corporation Balance Sheet as at 2021

Particulars Amount($) Amount($)

Non-Current Assets

Equipment 210,000

Less: Depreciation (78,000) 132,000

Current Assets

Cash 9,500

Accounts receivable 19,500

Inventory 35,000

Total Current Assets 64,000

Total Assets 196,000

Liabilities and Equity

Current Liabilities

Accounts Payable 75,000

Salaries payable 31,000

Total liabilities 106,000

Equity

Common Stock 69,000

Retained earnings 21,000

Total stockholders' equity 90,000

Total Liabilities and Equity 196,000

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3 years ago

Describe at least four factors that affect the demand for a particular commodity.

MrMuchimi

Answer with Explanation:

There are so many factors affecting the demand for a particular commodity. Four of these are: the price of the complements, the income of buyers, changes in trend and advertisements.

1. The price of the complements - Some commodities are complementary with each other, just like cars and gas. If the price of cars decreases, then many people will purchase their own cars, which also follows that the demand for gas will increase.

2. The income of buyers - If the income of a person increases, then he will most likely purchase a particular commodity because he can afford it and has an extra money to purchase goods.

3. Changes in trend - Many people purchase goods because they're on trend. For example, if flare pants are fashionable this year, then the demand for it will increase. Once they're no longer on trend, the demand will drop.

4. Advertisements - The more advertisements a company spends on, the more likely buyers will purchase a specific commodity.

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3 years ago

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Answer:

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2 years ago