Explain how a person who pursued a career in accounting could succeed as an entrepreneur.

Chase Company has 10 employees, who earn a total of $2,200 in salaries each working day. They are paid on Monday for the five-da

UkoKoshka [18]

The adjusting entry is shown below:

Salaries expense A/c $6,600

To Salaries payable A/c $6,600

(Being salary is adjusted)

The salaries expense is computed by

= Total salary each day × number of days

= $2,200 × 3 days

= $6,600

The 3 days is computed from Monday to Wednesday

And for correct posting, we debited the salaries expense account and credited the salaries payable account.

<h3>What is Salary Payable and Salary Expense?</h3>

Salaries expense is how much an employee earned in salary. Salaries payable refers only to the amount of salary pay that employers have not yet distributed to employees.

Since Salaries are an expense, the Salary Expense is debited.

Correspondingly, Salaries Payable are a Liability and is credited on the books of the company.

Learn more about Salary Payable and Expenses on:

brainly.com/question/14299088

#SPJ4

7 0

1 year ago

Kelly received a cookbook in the mail that she had not ordered. the packing slip read: " return this book to the publisher withi

LenaWriter [7]

Kelly ethically should be responsible for paying the $35. This is because she did not return the book within time in hopes of it getting to the person who ordered it, therefore could be considered a thieve if she does not pay for it.

8 0

3 years ago

Steve Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated

Ghella [55]

Answer:

Steve Company

Entries to record the sale of the tractor will show:

Debit Cash Account with $70,000

Credit Sale of Tractor with $70,000

To record the sale

Debit Accumulated Depreciation with $72,000

Credit Sale of Tractor with $72,000

To record the transfer of accumulated depreciation.

Debit Sale of Tractor with $180,000

Credit Tractor Account with $180,000

To record the transfer of Tractor account.

Debit Loss on Sale of Tractor with $38,000

Credit Sale of Tractor with $38,000

To record the loss on sale of tractor.

Explanation:

1. Depreciation Expense for:

2019 = ($180,000 - 20,000)/10,000 x 2,400 = $38,400

2020 = ($180,000 - 20,000)/10,000 x 2,100 = $33,600

2. Accumulated Depreciation balance = $72,000 ($38,400 + 33,600)

3. Tractor account will be equal to $180,000 and this is transferred out to Sale of Tractor to account for the transaction.

4. Loss on Sale of Tractor = $38,000 ($180,000 - 72,000 - 70,000). The tractor was sold for less than its book value. The book value is the Tractor book value minus the accumulated depreciation.

3 0

3 years ago

Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write

shepuryov [24]

Answer:

Year Sales Written Off Accounts

Year of Origin

Uncollectible 1 2 3

1st $ 900,000 $4,500 $4,500

2nd 1,250,000 9,600 3,000 $6,600

3rd 1,500,000 12,800 1,000 3,700 $8,100

4th 2,200,000 16,550 1,500 4,300 $10,750

Year <u> Bad Debt Expense </u>

Expense Actually Expense Increase Balance of Allowance

Reported Estimated (Decrease) Account Year End

1) $4500 $ 9000 $4500 $ 4500

2) $ 9600 $12500 1900 $ 6400

3) $12800 15000 2200 $ 8600

4) 16550 22000 5450 14,050

Explanation:

The actual write off accounts originating in the years were

1) ( $ 4500+ $ 3000+ $ 1000+ $ 1500)= $ 9500

2) ( $ 6600+ 3700+ 4300) = $ 14600

3) ($ 8100+ $ 10,750)= $ 18,850.

Only the first year written off accounts are close to expense if it would have been calculated to 1% of sales ( 1% of $ 900,000) = $ 9000

4 0

3 years ago

Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2

dusya [7]

Answer:

IRR= 20%

Explanation:

The Internal Rate of Return (IRR) tries to find the profitability of the money that remains invested during the life of a proyect. It is also known as the discount rate that makes the Net Present Value (NPV) equal to cero. When the NPV is equal to cero, then the proyect does not create or destroy value. So, if we calculate the NPV with the IRR we will find that it is equal to cero. In this case, if the cost of capital were 20% the proyect will not create or destroy value, but the problem is giving us a cost of capital that is less than 20%, then the proyect creates value. If we calculate the NPV with the rate of 16% it will be grater than zero.

The figure attached shows the IRR formula. But i calculated using Excel: first i put the cash flows of each year ( the first one is negative because it is an investment ). Then i used the formula: "=IRR(C4:C8)"

6 0

3 years ago