Answer and Explanation:
The Journal entry is shown below:-
Income tax expense Dr, $40,025
To Deferred tax liability $2,025
To Income tax payable $38,025
(Being income taxes for the year 2020 is recorded)
Working note:-
Excess depreciation = ($27,000 × 50%) - ($27,000 ÷ 4)
= $13,500 - $6,750
= $6,750
For Deferred tax liability = $6,750 × 30%
= $2,025
For Income tax payable = ($157,000 - $23,500 - $6,750) × 30%
= $126,750 × 30%
= $38,025
Answer:
a. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500
Explanation:
When the company receives the $27,000 check for six months of advance rent, it records the unearned revenue in a liability account named Unearned Rent Revenue. The resulting journal entry is:
(Dr) Cash, $27,000
(Cr) Unearned Rent Revenue, $27,000
With the passing of each month, the company <em>earns</em> one-sixth (1/6) of the unearned rent revenue (or $4,500), essentially reclassifying the revenue from unearned to earned. Therefore, after one month, the resulting journal entry is:
(Dr) Unearned Rent Revenue, $4,500
(Cr) Rent Revenue, $4,500
Answer:
Explanation:
According to the law of demand,a rise in price leads to a decrease in quantity demanded and a fall in price leads to an increase in quantity demanded.
1.The price of a gallon of 2% milk has risen, therefore, quantity demanded decreases.
2.The price of laser tag has fallen,therefore,quantity demanded increases.
3.The price of dressers and desks has risen,therefore,quantity demanded decreases.
4.The price of pork shoulder has fallen from $3.99 per pound to $1.99 per pound,therefore,quantity demanded increases.
5.Another MP3 album comes free,with purchase of an MP3 album .This means the supplier have effectively halved the price.therefore,quantity demanded increases.
