Answer:
The journal entry to be recorded for the payment of the note on date of maturity is shown below:
Explanation:
The journal entry to be recorded for the payment of the note on date of maturity is as follows:
Notes Payable A/c..........................Dr $9,000
Interest expense A/c......................Dr $148
Cash A/c..........................................Cr $9,148
Being payment of the note payable is reported on the maturity date
As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.
Working Note:
Interest expense = $9,000 × 10% × 60/ 365
Interest expense = $148
Answer:
$90,000 and $86,000
Explanation:
In year 1, Lawrence Corp. purchased equipment for $100,000. Lawrence uses straight-line depreciation over a 10-year useful life with no residual value for financial reporting purposes.
In year 1, tax depreciation was $14,000. At the end of year 1, the carrying value for accounting purposes is $90,000, and the tax basis is $86,000.
Carrying value = Cost - Depreciation to date = 100,000 - (100.000 cost / 10 years) = $90,000
While tax basis = Cost - Tax depreciation = $100,000 - $14,000 = $86,000
Answer:
1
dr Rent expenses 440
cr Prepaid rent 440
Rent december
2
dr Depreciation expenses 183,33
cr Accumulate depreciation 183,33
Depreciation december
Explanation:
1
dr Rent expenses 440
cr Prepaid rent 440
Rent december
2
dr Depreciation expenses 183,33
cr Accumulate depreciation 183,33
Depreciation december
Answer:
For Marla,
Number of shares purchased is 100 @ $8 per share
Initial Position = 100 * 8 = $800
Dividends Received = $200
Brokerage Paid = 75 + 75 = $150
Current Value of Stock = $7
Current Position for 100 shares @ $7 per share
Current Position = $700
Holding Period Return = Profit/Initial Investment
Holding Period Return = ((700 - 800) - 150 + 200)/800
Holding Period Return = -6.25%
Answer:
- Cash account debited; Common stock credited
- Fixed assets (equipment account) debited; Accounts payable credited
- Rent expense debited, Cash credited
- Accounts reeivable debited, Service revenue credited
Explanation:
The full accounting entries relating to the above are:
Debit Cash $5,000
Credit Common stock $5,000
<em>(Recognize common stock issuance)</em>
Debit Equipment $1,100
Credit Accounts payable $1,100
<em>(Purchase of equipment on account)</em>
Debit Rent expense $740
Credit Cash $740
<em>(June rent payment)</em>
Debit Accounts receivable $700
Credit Service revenue $700
<em>(Welding work for Will Wheaton)</em>
