Answer:
Explanation:
a. Dr Cash 5,376,150
Cr Premium on bonds payable 376,150
Cr Bonds payable 5,000,000
b. Dr Interest expense 322,569
Dr premium on bonds payable 2431
Cr Cash 325,000
c. Dr Interest expense 322,423
Dr Premium on bonds payable 2577
Cr Cash 325,000
d. Dr Interest expense 322,269
Dr premium on bonds payable 2731
Cr Cash 325,000
Answer: Assets are listed in descending order of liquidity
Explanation:
According to accountant principles, the assets are always listed starting with the most liquid asset. It has the special purpose of helping to the shareholders and company owners to know what assets are easily sold and become in cash flow. The most liquid asset is always the cash, it is the first in the list. Commonly the second asset listed is the inventory, then we have ththe realizable value ( it includes bonds, stocks and other stock market elements), followed by the elements available for sell, at the end we can find listed long term resources including fixed assets and intangible assets.
<span>If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be: </span>subsidized
Answer:
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Explanation:
Preparation of the Journal entry to record the flow of labor costs into production during May
Based on the information given the Journal entry to record the flow of labor costs into production during May will be :
May
Dr Work in Process $35,500
Cr Wages Payable $35,500
Calculated as:
Labor costs = (740*20)+(900*23)
Labor costs=14,800+20,700
Labor costs=$35,500
Calculation of amount of prepaid insurance and insurance expense shown on the year 2 financial statements;
It is given that on June 1 of year 1 the company paid $1,800 cash for an insurance policy for one year.
Hence the insurance expense for the first year shall be calculated for 7 months (June to December) = 1800*7/12 = $1050. The balance in the prepaid instance as on December 31 of the first year shall be (1800-1050) = $750
In the second year the insurance expense shall be $750 and at the end of the second year, the balance in the prepaid insurance shall be nil.
