ACCOUTING PRIN SET LL INCLUSIVE
ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
Question
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Chapter 11, Problem 1DIE

(1)

To determine

Interest expense: The charges on the finance or loan availed from various sources are called interest expense. Interest expenses are recorded when due and paid as per the term of the loan.

Sales tax: The additional amount paid by the buyer over and above the cost of goods plus profit margin of the manufacturer is known as sales tax. Company records this tax as the sales tax payable because it needs to be paid to tax authorities.

Accrued revenue: It is the part of total revenue that is earned during the current period of accounting but not received. Accounts report this amount as revenue of a company.

To compute: The interest expense incurred.

2.

To determine

To compute: Sales tax payable.

3.

To determine

To compute: Amount of subscription to be recognized.

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