On January 1, 20X1, Weislin Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. What adjusting entry is needed on December 31, 20X1?
Q: On 31 December 20x1, AAA Ltd acquired 70% equity interest in BBB Ltd by paying a consideration of…
A: Non controlling interest is minority shareholders interest. Goodwill is difference between…
Q: If a manufacturer of electronic devices invests $650,000 in equipment for making compact…
A: IRR is also known was Internal rate of return. It is a capital budgeting techniques which help in…
Q: 1, 2014, Fishbone (an equipment On January Corporation manufacturer) sold equipment to Lost Company…
A: Year PVF 5% 1 0.9524 2 0.907 3 0.8638 a 2.7232 Annual Payment (b) $ 80,000 Note…
Q: a) Write the appropriate debits and credit on each of the given dates of the preceding transactions…
A: Financial statements are important reports that provide an overview of a company's financial…
Q: Mellor Towing Company provides hauling and delivery services for other businesses. It is at the end…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: As a manager, which income statement format do you find more useful - the traditional financial…
A: A traditional income statement, also referred to as a profit and loss statement, reveals whether a…
Q: Carla Vista Manufacturing Inc. has the following cost and production data for the month of April.…
A: Unit costs = Cost incurred / equivalent unit Equivalent units describe how much work has been done…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Under variable costing, the unit product cost consists of direct materials , direct labor and…
Q: A major electronics company has acquired a green field site to build a new factory. The land costs…
A: The cost of land would consist of the land purchase cost, professional fee paid for such…
Q: subject; accounting Hi can i get help with FS IMpact can you you broke it down for me on how to…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Suppose a firm has the following taxable income as shown below. How much loss wor to be carried…
A: As per Internal Revenue Service (IRS), Net Operating Loss (NOL) can be set off against the future…
Q: Marty and Dee have two qualifying children for the child and dependent credit. In 2014 they paid a…
A: The child and dependent care credit are based on the amount of work-related childcare expenses a…
Q: Coburn (beginning capital $60.000) and Webb (beginning capital $86.000) are partners. During 2022,…
A: No interest on capital is allowed to partners if no interest is mentioned in the partnership deed.…
Q: Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.…
A: Net Operating working capital = Operating current asset - Operating current liability. Free cash…
Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909…
A: The concept of present value is widely used in financial analysis, investment evaluation, and…
Q: Isabella contributes a painting to a local museum for display. Her AGI is $60,000. Isabella paid…
A: To determine Isabella's deductible contribution for the painting, we need to consider the rules for…
Q: A firm expects to achieve the following level of sales, to make the following purchases of raw…
A: The account receivables represents the amount due from customers. The account receivables are…
Q: Multiple Choice Derst Inc. sells a particular textbook for $28. Variable expenses are $22 per book.…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: situations (a) to (e) determine her inventory should be inc or excluded in inventory at December 31,…
A: The choice of inventory valuation method can have a significant impact on a company's financial…
Q: On January 1, 2020, Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment.…
A: Equipment recorded value = Present value of face value of note + Present value of interest payments…
Q: Question 3 On December 31, 2022, Potter Corporation issued €2,000,000, 6%, 5-year bonds for…
A: The discount on the bond issued bond is amortized and added to the carrying value of the bond…
Q: Presented below are data for Cheyenne Corp. Assets, January 1 Liabilities, January 1 Stockholders'…
A: The accounting equation states that assets equal to sum of liabilities and equity. Assets =…
Q: Drilling Company uses activity-based costing and provides this information: Driver Rate…
A: Total manufacturing costs=Prime costs+Manufacturing overheadsManufacturing cost per unit=Total…
Q: Which of the following is not a method a company may use to accelerate cash receipts? O Decrease the…
A: The cash receipt is the amount received from the operating activities. A business need to have a…
Q: Assume an asset with an original cost of $40,000, $6,000 salvage value, is depreciated using…
A: Depreciation expense is the one which is charged on the non-current assets. It is reported in the…
Q: Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases…
A: Goods available for sale means the number of goods that an entity has in hand for the purpose of…
Q: T.o.p.i.c.:. .A.L.L.O.W.E.D. .D.E.D.U.C.T.I.O.N.S. .-. .I.n.c.o.m.e. .T.a.x.a.t.i.o.n.…
A: Income taxation in the Philippines allows certain deductions that taxpayers can claim to reduce…
Q: mer AG, both based in Germany, are two of the largest automobile manufacturers in the world. The…
A: Index is calculated by using arithmetic average of both total sales and non current assets
Q: [The following information applies to the questions displayed below.] Marco Company shows the…
A: The gross profit is calculated as difference between sales and cost of goods sold. The inventory…
Q: Merigold company is considering investing in new equipment that will cost $1,417,000 with a 10-year…
A: The cash payback period refers to the time required to recover the cost of the investment made by…
Q: Examining the recent financial statements of McLelland Clothing, Inc., you note the following:…
A: Ratio Analysis Is a Method Of Analysis Of The Company's Liquidity, Profitability By Comparing The…
Q: The totals from the first payroll of the year are shown below. Total FICA Earnings OASDI $36,195.10…
A: Given, gross payroll for that day= $7,475 Accrued wages means the wages which is due but not paid.
Q: The Felton and Burchell Partnership has partner capital account balances as follows: Felton,…
A: Partnership is a legal agreement between two or more person who abuse to run a business operation…
Q: he Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout…
A: Before-tax net annual cost savings=Savings in annual part time wages-Total costs of operating Annual…
Q: Calculate an index of multinationality based upon the geographical distribution of sales revenue and…
A: Given, Sales in Germany = 25,262 Non Current Asset in Germany = 49819
Q: a has cash of $5,000, inventory of $100,000, and accounts receivable of $45,000. Current…
A: Quick ratio = (Current assets - Inventory ) / Current liabilities Current assets = cash + Inventory…
Q: The equipment is recorded on January 1,2020 at
A: There are two questions but as per our protocol, only first question has been solved. Given in the…
Q: AT-C Section 315. "Compliance Attestation." allows a practitioner to perform agreed-upon procedures…
A: A professional who offers attestation or assurance services is referred to as a practitioner. These…
Q: The following data was taken from the books as at December 31 of Carla Vista Inc.: Cash Income tax…
A: Retained Earnings - Retained Earnings is an accumulated Profit earned by the organization over a…
Q: Accounting data of Unser Foods are presented here. Net sales Total assets 2025 $708,180 $661,500…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: During January, Mary Dolan, a contractor, provided pet care se Fridays in January, totaling 24 hours…
A: The adjusting journal entry is made to record the expenses and the corresponding accounts payable.…
Q: a) Tax FUTA SUTA b) Tax Compute BMX's amounts for each of these four taxes as applied to the…
A: Social Security Tax : Social Security tax is the tax levied on both employers and employees to fund…
Q: Data for the cost of direct materials for the month ended March 31, 2022, are as follows: Raw…
A: Payment of accounts payable is not to be considered for computing cost of Direct material used.
Q: The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. Required:…
A: FICA taxes are deducted from each paycheck of employees, with equivalent contribution from the…
Q: 5 BladeCraft Cost of Goods Manufactured For the month ended January 31, 2023 Work in Progress…
A: Cost of goods manufactured refers to the statement describing the total amount of goods produced…
Q: Ratios Analyzing Long-Term Firm Solvency The following information is available for Percy Company:…
A: Debt to equity ratio :— It is calculated by dividing total liabilities by total stockholders'…
Q: Elfalan Corporation produces a single product. The cost of producing and setting a ungle unt of this…
A: Situations might arise in which management must determine whether or not to accept odd client…
Q: Danner Company expects to have a cash balance of $47,250 on January 1, 2020. Relevant monthly budget…
A: Cash budget estimates the cash inflow and cash outflow transactions of that specified period.…
Q: Phillip and Quentin form an LLC, taxable as a partnership, on January 1, 20x1. Phillip contributed…
A: It is the change in material amount of the assets or securities recorded at their initial cost. The…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A: Under the absorption costing method, the fixed manufacturing cost is allocated to all produced…
On January 1, 20X1, Weislin Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. What
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
- Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the Peoples National Bank on a 3-year, 4% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?
- Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: Additional information: (a) On January 1, 2019, the company had paid 2 years rent in advance at 100 a month for office space, (b) the office equipment is being depreciated on a straight-line basis over a 10-year life, and no residua! value is expected, (c) interest of 150 has accrued on the note payable but has not been paid, and (d) the income tax rate is 30% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. 2. Prepare financial statements for 2019.Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business sets up a line of credit with a supplier. The company purchases $10,000 worth of equipment on credit. Terms of purchase are 5/10, n/30. B. A customer purchases a watering hose for $25. The sales tax rate is 5%. C. Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $250 per season ticket. Each customer purchased two season tickets. D. A company issues 2,000 shares of its common stock with a price per share of $15.Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is a 25,000 interest-only loan with a nominal rate of 11%. Interest is calculated on a simple interest basis with a 365-day year. What is Minnerlys interest charge for the first month (assuming 31 days in the month)?