Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
Answer:
A. 68,800
Explanation:
Cash balance at end of April is = Beginning cash balance on April 1st + Cash collection in April - Purchase of Materials in APril - Operating Expense in April - Capital Expenditures in APril = 14000 + 42000 - 7000 - 7000 - 5000 = 37000
Cash balance at end of May is = Beginning cash balance in May + Cash collection in May - Purchase of Materials in May - Operating Expense in May = 37000 + 45000 - 7200 - 6000 = 68,800
Answer:
a.
Cash $4,500 (debit)
Deferred Revenue $4,500 (credit)
b.
Prepaid Advertising $2,700 (debit)
Cash $2,700 (credit)
c.
Salaries Expense $8,000 (debit)
Salaries Accrued $8,000 (credit)
d.
J1
Cash $70,000 (debit)
Note Payable $70,000 (credit)
J2
Interest Expense $2,100 (debit)
Note Payable $2,100 (credit)
Explanation:
a.
Recognize Cash and Deferred Revenue
b.
Recognize Asset - Prepaid Advertising and De-recognize Cash
c.
Recognize Salaries Expense and Recognize Salaries Accrued Liability
d.
J1
Recognize Cash Asset and Recognize Liability - Note Payable
J2
Recognize Interest income accrued on the Note Payable during September to December.
Answer:
APR= 23.91%
EAR= 8%
Explanation:
A stock was bought at $51.27 three months ago
The current share price is $55.36
Therefore the APR of the investment can be calculated as follows
= 55.36-51.27/51.27
= 4.09/51.27
= 0.0797
= 7.97%
APR= 3×7.97
= 23.91%
EAR= (1+0.079/3)^3-1
= 1+0.0263^3-1
= 1.026^3-1
= 0.08×100
= 8%
