BUSINESS COLLEGE

Demonstrate your knowledge of a depreciation adjusting entry by completing the following sentence. A depreciation adjustment would include a debit to _____(depreciation expense/accumulated depreciation/building) and _(debit/credit) to ________(depreciation expense/accumulated depreciation/building).

Answers

Answer 1

Answer:

Answer:

1. Depreciation Expense 2.Credit 3. Accumulated Depreciation

Explanation:

Depreciation is an expense. An increase in expense is always recorded as Debit.

Accumulated Depreciation is an allowance or reserve account which is credited till the time asset is in use.

Related Questions

When would a letter of comments be issued by the SEC?To request clarification of a registration statement.To convey your pertinent comments to the SEC.In response to a company's filing of Form 8-K.After receiving the company's Form 10-K.To indicate that a registration statement has been approved.A proxy statement must be filed with the SEC at least how many days before being distributed?Multiple Choicea. 30 days.b. 60 days.c. 10 days.d. 90 days.e. 7 days.
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Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative B will have revenues of $180,000 and costs of $125,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.

The company’s president has asked the Chief Financial Officer (CFO) to record an additional $75,000 of revenue at the end of the year without providing supporting documentation. What is the most ethical thing to do?

Answers

Answer:

It is unethical for the CFO to record the additional $75,000 without receipts and supporting documents

Explanation:

The company balance sheet needs to reflect the true financial position of the firm, hence the right thing to do is to ask for documentation and receipts before recording the additional $ 75,000.

Preparing a Sales Budget Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Sales Budget For the Coming Quarter January February March 1st Quarter Total Units Price $ $ $ $ Sales $ $ $ $

Answers

Answer:

Patrick Inc.

Sales Budget

For the First Quarter

January February March Total Quarter 1

Sale Units 41,000 38,000 50,000 129,000

Average Selling Price per Unit $35.00 $35.00 $35.00

Sales Value $1,435,000 $1,330,000 $1,750,000 $4,515,000

Explanation:

The Sales unit for each month is multiplied by its average sales price for e.g for January (41,000 units × by $35 = $ 1,435,000)

The Quarter totals (Units and sales Values in $) are added up to give the answer under the heading of Total Quarter 1.

The working is also attached with the answer.

Final answer:

For Patrick Inc., the sales budget for the first quarter is calculated by multiplying the expected units sold each month by the average price per unit. The total sales for the first quarter amount to $4,515,000.

Explanation:

Preparing a sales budget for Patrick Inc. involves multiplying the units sold each month by the price per unit. The average price for a 5-gallon drum of industrial solvent is $35.

For January: 41,000 units * $35/unit = $1,435,000.

For February: 38,000 units * $35/unit = $1,330,000.

For March: 50,000 units * $35/unit = $1,750,000.

Adding these amounts will give the total revenue for the 1st Quarter: $1,435,000 (January) + $1,330,000 (February) + $1,750,000 (March) = $4,515,000.

So, the sales budget for the first quarter would be as follows:
January: $1,435,000
February: $1,330,000
March: $1,750,000
Total first Quarter: $4,515,000.

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Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,720 $24,945 Short-term investments (end of year) 8,200 9,420 Operating expenses 60,020 64,325 Depreciation expense 13,300 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year.

Answers

Answer:

The correct answer is 265 Days and 237 Days.

Explanation:

According to the scenario,m the computation of the given data are as follows:

First we calculate the Days cash on hand by using following formula:

Days cash on hand = Cash and cash equivalent ÷ [(operating expenses - Depreciation expense) ÷ 365 ]

So, For the year 20Y8

Days Cash on hand = ( $25,720 + $8,200) ÷ [( $60,020 - $13,300) ÷ 365]

= $33,920 ÷ 128

= 265 days

So, For the year 20Y9

Days Cash on hand = ( $24,945 + $9,420) ÷ [( $64,325 - $11,400) ÷ 365]

= $34,365 ÷ 145

= 237 days

Sue has transferred her transferable interest of the partnership business to her creditor to discharge her debt. however, sue is an efficient manager and she still manages the business, even after the transfer. is she still a partner?

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Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a janitorial service? Which is likely to see its profits reduced the least? Explain.

Answers

Automobile producer would see profit reduced the most and janitorial services would be least affected.

Explanation:

Recession is one of the phases of the trade cycle. In this phase of the trade cycle, there is downfall in the production, consumption, investment and saving in the economy. The growth rate of the economy sees a downfall in this phase.

Among the examples given here, automobile producer is the firm which would be one of the most affected company during the time of recession because it is not something essential but luxury.

Final answer:

An automobile producer is most likely to see reduced profits during a recession, while a manufacturer of boots and shoes is the least likely. The janitorial service may experience a moderate impact. Recessions cause cyclical unemployment, whereas industry changes or relocations lead to structural unemployment.

Explanation:

The firm likely to see its profits reduced the most in a recession is the automobile producer, since automobiles are expensive, durable goods that consumers often delay purchasing during economic downturns. On the contrary, a manufacturer of boots and shoes is likely to see the least reduction in profits as these items are essential and need to be replaced periodically irrespective of the economic climate. Lastly, a janitorial service may experience a moderate impact since cleanliness is essential for health and safety, yet businesses might reduce the frequency of services to cut costs.

Recessions lead to job losses, creating cyclical unemployment. For example, landscapers laid off due to a drop in new housing construction during a recession is a classic instance of this type of unemployment. Coal miners laid off due to new EPA regulations represent structural unemployment, as the industry changes in response to new legislation. The financial analyst moving to Arizona is an example of frictional unemployment, arising from normal labor turnover and job-seeking activities. Printers and factory workers who lose their jobs due to changing industry conditions or relocation of production are also examples of structural unemployment.

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On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.Required:

1. Record the issuance of note.

2. Record the adjustment for interest.

3. Record the repayment of the note at maturity.

Answers

Answer:

Aug 1st,2021; Entry to record note issuance is as followed:

Dr Note Receivable $20,600,000

Cr Cash $20,600,000

(to record the issuance of note to Trico Technologies)

Dec 31st,2021; Entry to record interest income from note receivable:

Dr Interest revenue receivable $515,000

Cr Accrued Interest Income $515,000

(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)

3. January 31st, 2022; Entry to record repayment of the note at maturity:

Dr Cash $21,218,000

Cr Interest Income $103,000

Cr Note Receivable $20,600,000

Cr Interest Income receivable $515,000

( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.

Explanation:

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Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $35 per share. February 6 Issues 3,000 shares of 8% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $40 per share. December 15 Resells 5,500 shares of treasury stock at $45 per share. In its first year of operations, Finishing Touches has net income of $160,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,400 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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A city wants to raise revenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues. The city manager suggests that the city lower the price of admission to raise revenues. Who is correct?a. The mayor would be correct if demand were price elastic; the city manager would be correct if demand were price inelastic.b. The mayor would be correct if demand were price inelastic; the city manager would be correct if demand were price elastic.c. Both the mayor and city manager would be correct if demand were price elastic.d. Both the mayor and city manager would be correct if demand were price inelastic.