Answer:
The correct journal entries should be:
January 1, Year 3
Dr Notes Payable account 10,000
Cr Cash account 10,000
Explanation:
Since Cash account is an asset, it should be credited when it decreases.
Since Notes Payable account is a liability, it should be debited when it decreases.
Answer:
$586.27/mo
Explanation:
Factor doesn’t compound like interest does, 8.78 factor of $65,000 comes out to be $5,707 over the 30 years is $15.85/mo. The loan $65,000, 10% interest rate, 30 years comes out to a monthly payment of $570.42.
$570.42+$15.85= $586.27/mo.
Answer:
The production of the clocks should be continued, as buy option will increase the cost for the company by 48,000
Explanation:
Current escenario
100 DM x 1,200 = 120,000
140 DL x 1,200 = 168,000
80 VO x 1,200 = 96,000
Fixed Cost 150 x 1,200 = 180,000
Total cost = 564,000
420 x 1,200 = 504,000
60% fixed cost unavoudable 180,00 = 108,000
Total Cost 612,000
make 564,000
buy (612,000)
total cost saving (48,000)
Answer:
The Correct Statements regarding an adjusted trial balance and its use in preparing financial statements are:
1. The adjusted trial balance includes all accounts and balances appearing in financial statements.
3. Financial statements are easier to prepare using the adjusted trial balance than the general ledger.
5. The ending Retained Earnings account balance on the balance sheet is transferred from the statement of retained earnings.
6. The income statement is the first financial statement prepared after preparing the adjusted trial balance.
Explanation:
a) The above answers leave the following incorrect statements about the adjusted trial balance:
2. The ending Retained Earnings account balance on the balance sheet is taken directly from the adjusted trial balance.
4. The balance sheet is the first financial statement prepared.
b) In conclusion, the adjusted trial balance, which lists the general ledger account balances, is compiled after considering period-end adjustment entries, in line with the accrual concept and the matching principles of generally accepted accounting principles.
Answer:
$14,400
Explanation:
$120,000 × 8/50 = $19,200
($5,880,000 + $19,200) ÷ 2 = $2,949,600
Gain would now be
$2,964,000 - $2,949,600 = $14,400.
Cheers
