The $5000 rent deposit relates to ABC move to a new apartment in April 2018 and is refundable at the end of the lease. Ethan paid a deposit since the lessor generously offered free rent for 12 months of the lease. The lease is for 60 months, and $0 for the first 12 months and $2500 per month thereafter. Rent expense for this lease was not recorded since nothing was paid during 2018 other than the deposit. Margeret the accountant thinks the prepaid expense is correct but would like to be confirmed
Prepaid Balance :
2018 Rent Deposit. $5000
Margeret, the accountant is incorrect in classifying the rental deposit as prepaid expenses since the deposit is for more than 12 months.
It should have been classified as Non current Asset.
The $5000 rent deposit relates to ABC move to a new apartment in April 2018 and...
please answer 341 and 345
hed ferig A) the Direct Methid B) the Indirect Methood 342) ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance until maturity: Cash Paid Increase in Carrying Value Interest Date ExpenseCarrying Value $194,758 1/1/2018 6/30/2018 $790 195,548 $7,000 $7,790 196,370nen 12/31/2018 7,000 7,822 822 6/30/2019 7,000 7,855 855 197,225 198114w in 12/31/2019 7,000 889 7.889 6/30/2020 925 7,000 7,925 199,039 12/31/2020 7,000 961 7,961 200,000 ABC...
A review of the ledger of ABC Inc. at December 31 produces the
following data for the preparation of annual adjusting
entries:
1.
Salaries and Wages Payable, $0. There are 8 salaried employees.
6 employees receive a salary of $1,250 each per week, and 2
employees earn $680 each per week. Employees do not work weekends.
All employees worked two days after the last pay period and before
December 31.
2.
Unearned Rent Revenue, $443,320. The company began subleasing
condos...
this is general entries correct Date Description April 1, 2018 Jaymie Demears and Rick Mester each invested $20,000 to establish Dora's Diner. Each were issued 4,000 shares of $5 par value common stock. April 1, 2018 The partners negotiated a 3-year lease of a diner at $2,500 per month. The landlord required a payment of $12,500 for 4 months of rent plus a $2,500 security deposit. April 1, 2018 Purchased equipment, and furniture for $15,000 and $3,500, respectively. The company...
What would be the appropriate adjusting journal entries: The notes payable balance relates to a bank loan obtained in 2018 that is payable in full on august 31,2023. the loan agreement specifies that Clarke pay interest annually on august 31 at a rate of 7.05%. Clarke's bookkeeper made the proper entry for the first interest payment. On September 20,2019, Clarke paid $53,952 for ads to run evenly over a 10-month period, starting October 1,2019. In November 2019, Clarke received $129,320...
Overview: In this milestone, you will move through the next
phase of the accounting cycle by creating the trial balance,
adjusting entries, and adjusted trial balance. Completing the
adjusting entries implements the matching, timing, and periodicity
of the generally accepted accounting principles. Omission of this
step will show a higher net income than there actually is, which
could cause users of the financial statements to make an incorrect
decision and suffer financially. Prompt: You will find the provided
data for...
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31. The articles of incorporation state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur...
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31. The articles of incorporation state that the corporation will sell 24,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur...
Juan Orchid is a photographer who has started a new photography business. On December 1, 2018, Juan decided to incorporate under the name Mont Alto Campus Photography. Juan has hired you to provide accounting services for the company. Read the instructions at the top of each tab. Prepare the required journal entries for the month of December, the necessary adjusting entries and closing entries as of December 31, and a complete set of financial statements, to include all proper labels....
Instructions for using the SAP ERP system start on page 13 of this document. Account Balances as of December 31, 2018 Debit Balance Credit Balance 100000 Bank Account $277,518 110100 Accounts Receivable (Direct Posting Account) 92,670 110150 Allowance for Bad Debts 2,500 200600 Inventory-Operating Supplies 8,832 200900 Inventory-Raw Materials (Direct Post) 52,000 200910 Inventory-Finished Goods (Direct Post) 281,298 200920 Inventory-Trading Goods (Direct Post) 66,474 210000 Prepaid Insurance 5,000 212000 Prepaid Advertising 1,100 220110 Land (Direct Post) 425,000 220210 Production Machinery,...