Answer:
a.
Cash $4,500 (debit)
Deferred Revenue $4,500 (credit)
b.
Prepaid Advertising $2,700 (debit)
Cash $2,700 (credit)
c.
Salaries Expense $8,000 (debit)
Salaries Accrued $8,000 (credit)
d.
J1
Cash $70,000 (debit)
Note Payable $70,000 (credit)
J2
Interest Expense $2,100 (debit)
Note Payable $2,100 (credit)
Explanation:
a.
Recognize Cash and Deferred Revenue
b.
Recognize Asset - Prepaid Advertising and De-recognize Cash
c.
Recognize Salaries Expense and Recognize Salaries Accrued Liability
d.
J1
Recognize Cash Asset and Recognize Liability - Note Payable
J2
Recognize Interest income accrued on the Note Payable during September to December.
Answer:
d. $5,000
Explanation:
Patnode's information is missing, so I looked it up. I found the balance sheet for 2014 and 2015. Hope that it is the same question:
total depreciation expense for 2015 = change in accumulated depreciation (2015 - 2014) + change in accumulated amortization (2015 - 2014) = ($3,000 - $0) + ($3,000 - $1,000) = $3,000 + $2,000 = $5,000
Answer:
Company A
In order to maintain the desired cash balance, the company will need to:
borrow $58,000
Explanation:
a) Data and Calculations:
Cash receipts: $542,000
Beginning cash balance: $10,000
Cash payments (including interest payments): $560,000
Outstanding loan balance: $100,000
Desired ending cash balance: $50,000
Beginning cash balance: $10,000
Cash receipts: $542,000
Cash available $552,000
Cash payments (including
interest payments): $560,000
Cash balance ($8,000)
Desired ending balance 50,000
Amount to borrow = $58,000
Answer: Year 2 depreciation= $16,000
Correct answer is not among the options
Explanation:
Using the straight line depreciation method we have that
Annual Depreciation = Purchase cost - Salvage value/ useful life
=$80000-$16000 / 4
$64,000/ 4
= $16,000
If Annual depreciation= $16,000 , then Deprecation expense for year 2 = $16,000
