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tsantillo,
Your calculations are correct. But how did you get $579 expense from item no4. You probably have more info on it that you stated.

Dr Mortgage Account $25,000
Cr Cash account 25,000
Dr Mortgage interest $7,500
Cr mortgage Account $7,500
Note: crediting mortgage account with 7,500 removes the interest charge. Debiting...

Dr Bad debt expense for the month
Cr Provision for doubtful debts allowance

To understand what action you take in adjusting expense and revenue, you must understand that expense is a debit balance and revenue takes a credit balance. Now, to understate an expense account is...

Dr Cash
Cr unearned Income or Deferral Account
To record portion of income earned in advance

There are four basic forms of business combination and control. You need to study the features of Statutory Merger, Statutory consolidation, Acquisition of Common Stock, and Acquisition of Assets to...

The rule is: Dr assets, Expenses & losses; Cr liabilities and gains
Credit Mortgage and Dr freehold premises; Dr returns inward; Dr carriage inward; Dr sundry debtors. Mortgage interest payable is...

Weighted Average: as the name implies, it takes the average price per unit of inventory. The result is to smooth en the fluctuations in price level

Provision for bad debts or uncollectible for period is $1,150. But actual bad debts for the period is $1,250. The difference is $100 additional expense to be written off the balance sheet. Therefore...

Journal Entries DR CR
Aug1 Cash Ledger 7,500
Photographic Equip. 32,000
Owner Equity ...

slight correction. Regular sale is projected at 240,000 x $1= $240,000 profit. Additional increase $(240,000 +30,000)=$270,000

Profit will increase by $30,000 as follows:
Units to manufacture=300,000. Variable Cost (VC) is $750,000. Variable cost per unit
is $750,000/300,000=$2.5. Fixed cost is $450,000. Average fixed...

Opening balances or balance carried forward are either credit or debit. If, for example, your opening balance is coming from Account Receivable ledger, you draw up a T account and write balance...

Using Perpetual Inventory method means that you should open Cost of Goods Sold ledger with a debit entry. Any shortage arising thereof is credited because it is a deduction from from the first entry....

Answer: (A).

Bonds Selling price= present value of the principal + present value of the interest payments
Present value of $300,000 ten periods at 3%=300,000x0.74409=$223,227
present value of $12,000 annuity...

You have $200,000 account receivable in the beginning and $240,000 at 31 December. The difference is $40,000 which you should base the 5% provision on. The old provision was based on $200,000. Does...

Rinnah, see your transactions as series of debits and credit and your figure for bad debt expense equals= $6,900. First, the provision for bad and doubtful debts is a credit balance of $10,00. When...