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21 Billed customers for cleaning offices $670

dr. Accounts Receivable 670
Cr. Cleaning Revenue 670

29 Received $300 from the cusomters billed on the 21

dr. Cash 300
Cr. Accounts Receivable...

If payment has been received as soon as service is rendered, then dr cash. Otherwise, dr accounts receivable or whatever was received in payment of the service.

No entry yet on Oct 2.

Oct 7 dr. Cleaning Supplies 500
Cr. Accounts Payable 500

No entry to record agreement of payment terms.

If payments were actually made on the agreed dates, then:
...

21 Billed customers for cleaning offices $670

dr. Accounts Receivable 670
Cr. Service Income 670
To record accounts receivable on service rendered

29 Received $300 from the cusomters billed...

I believe it is the same.

The 10% bond is the coupon rate stated on the face of the bond. She will be receiving 10% return on the face value of the bond on every interest payment date. However, due to effects of supply and...

Dr. Interest expense 750
Cr. Interest payable 750
To record unrecorded interest expense

dr. Bad debts expense 55000
Cr. Allowance for doubtful accounts 55000
To record allowance for doubtful...

Depreciation expense is normally debited and Accumulated Depreciation is credited if you will be adding depreciation to an equipment still owned by the company that has not been fully depreciated. ...

It does not involve cash so I would say letter D

My answer would be letter B because it's the income statement that provides info on the profitability of the company. All other answers pertain to the cash flow statement.

You only need a memo entry to record the authorization. For the Jan 2 transaction (assuming the issuance was paid entirely in cash):

dr. Cash 500,000
Cr. Common Stock 100000
Cr. Additional paid...

Example:
Beginning balance of Allowance 1000
Accounts Written Off (200)
Recovery of previously written off accounts 300
Ending balance of Allowance 1,100

Aging of AR/% of AR is 1,200
1,200 is...

You have to compute for profit. Use the formula:

Sales xx
Less: Variable Costs xx
Contribution Margin xx
Less Fixed Costs xx
Profit xx

For #1 only:)

The answer should be D. Your % of cost of sales to sales remain at 70%. So any % increase in sales will also translate to the same % increase in COS.

Example:

Year 1
Sales...

I do not think that you estimate what to put in the allowance at the beginning of the period because that will make you ultra conservative because you have not yet even known the quality of your...

Paid a creditor/ cash reciepts journal
Purchased office equipment for cash / purchases journal
Paid sales commission/ cash reciepts journal

I believe your answers on the 3 questions above are...

Yes, you should since you have paid for something.

Ok, I hope you should try harder though... In crediting capital, you are adding to it 2000 which does not make any sense.

dr. Bad Debts Expense 2000
Cr. Allowance for Doubtful Accounts 2000
...

We can help check your answers for these.

You have to try to answer first.:)

The business will be receiving a total of 25000 from the investors. Assuming $2.50 par value of stock

dr. Cash 25,000
cr. (Common/Preferred) Stock 25,000

I would use future values for this problem.

You have to get the FV of the initial 200 that you will be depositing. Subtract that from the 12,000 that you needed at the end of 5years. The...

If your unadjusted book balance is incorrectly recorded in the reconciliation, then your adjusted book and bank balances would not be equal, assuming that all reconciling items are correct.

The...

You're correct

If those are the choices, then you are correct. $430 electricity should have been recorded as June expense while office supplies will be expensed when consumed.

2. Since office supplies are expendable, it has to be expensed as well.

3. correct.

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Account no... Particulars... Debit... Credit...

Sorry, I am kind of confused with your answer:) I believe that #1 and #2 are two separate questions.

#1 Since you already have 415 in the credit balance of allowance, you will only need an...

The result of the % of accounts receivable is the required balance of Allowance for Doubtful Accounts. Allowance for Doubtful Accounts is a contra-asset account which has its normal balance on the...

Please make your journal entries first and we'll help you check if they're correct.:)

You have to use the ff accounting equations:

Assets=Liabilities + owner's equity.

Owner's Equity, end = Beg balance + net income - withdrawals

Net Income = Sales - expenses

You will have to debit the payment received (cash/another asset/accounts payable if offset of liability was used) and credit the account used in recording the check (cash/cash in bank/notes...

Yes, you will deduct it from retained earnings.

What do you mean by a Dividend account?

Maybe. But in the end it all boils down to the student's attitude.

To capuchin: Yes, you are correct. I am actually quite hesitant in giving out answers with complete explanations because I am thinking that these students must have been given the formulas in...

Sorry, I got a little confused with your trial balance. Since your beginning balances in the FS balance, then errors could have occurred either in posting your entries per account or in posting to...

it would really depend if "over 3" pertains to d as well

(d+8)/3=-14

d+8=-14*3
d=-42-8
d=-50

Correct

2. 11 years

3. $1,725.22

4. $1,845.99

1. 72/6.5 = 11.07 years to double your money.

In actual practice, as far as I know, a bank usually accepts for deposit a check drawn against insufficient funds only once after it bounces. So if I deposit a check and it bounces, I have another...

dr. cash 1000
Cr. Common shares 100
Cr. Additional paid in capital 900

The coupon rate is already stated in the bond.

1. Cost of debt is cheaper that cost of preferred stock because you do not put any of your own money in debt.

If, let's say, you loan $5M to buy a piece of property and pay 10% in interest and...

I would capitalize it under Machinery, especially if amount of installation is material.

I am assuming that the reason the cheque is not yet paid at the end of the month is because it is postdated. Postdated checks are like promissory notes to be paid at a later date. So it would be...

You can create a separate account to charge the purchases made with personal cash.

Let's say you bought office supplies with your own money and requests for reimbursement:

Dr Office Supplies xx...

If the note was signed on Dec 31, and money was transferred to the company on the same date then it would just be:

Dr cash 15,000
Cr. Notes payable 15,000

Interest will be recorded when...