Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Record the events in each sub-task (a-f) by entering the amount, the account number to be debited and credited (grey boxes). Round off your
6. Record the events in each sub-task (a-f) by entering the amount, the account number to be debited and credited (grey boxes). Round off your answer if necessary to the entire number. Use the following accounts: Account number Account name 170 Prepaid expenses and accrued income 290 Accrued expenses and prepaid income 839 Rental income 341 Rental income 841 Interest expenses 621 Telecommunication costs 631 Insurance costs a) Company A rents out part of its warehouse to another company in the area. The rent is paid in advance and in mid-December year 2. Company A receives $22,000 in rent for the first quarter of year 3. Upon payment, Company A reports the amount as rental income. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount b) Company A has liability insurance. The most recent payment for the insurance amounted to $2,900 and referred to the next six months starting on 1/8 year 2. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount c) Company A has lent $125,000 to a company that works with the development of the local business community. The loan runs with 2% interest and the most recent interest payment referred to the period up to 31/10 year 2. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount d) Company A has a mobile subscription with Verizon where a fixed subscription fee is paid in advance and a variable fee based on actual traffic that is invoiced in arrears. The latest invoice for a fixed subscription fee of $45,000 and referred to a three-month period starting 1/12 year 2. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount e) Company A has a mobile subscription with Verizon where a fixed subscription fee is paid in advance and a variable fee based on actual traffic that is invoiced in arrears. The most recent invoice for actual traffic referred to the period up to 31/10. Based on previous statistics, the variable fee for November and December is estimated at $9.200. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount f) Company A has an amortization-free bank loan of $425,000 that runs with 5% interest and the most recent interest payment referred to the period up to 15/11 year 2. What does Company A book in the final accounts as of 31/12 year 2? Debit Credit Amount
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started