Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Can you explain how these questions are worked out? Don't have to do all, just explain some 1. HTC borrowed $100.000 and signed a 9-month

Can you explain how these questions are worked out? Don't have to do all, just explain some

image text in transcribed

1. HTC borrowed $100.000 and signed a 9-month note with 12% interest on July 1, 2019. The note is due March 31,2020. How much interest expense should be recognized during 2019 and 2020? Dr. 12/31 Interest expense 6,000 Interest payable 6,000 Total interest expense for the note is $9,000. $6,000 for 2019 and $3,000 for 2020. 2. They rented a building to start their business on October 1, 2019. They paid $12,000 rent in advance and rent per month is $1,000. 12/31 Rent expense 3,000 Prepaid rent 3,000 There are $9,000 in prepaid rent account by the end of the year. 3. They collected $20,000 in advance from customers on October 1, 2019 and at December 31, 2019, $6,000 of the money collected had not been earned. 12/31 Unearned revenue 14,000 Service revenue 14,000 There are $6,000 in unearned revenue account by the end of the year. 4. On October 1, 2019, they had $1,000 supplies and during the year, they purchased additional $6,000 supplies. At the end of year, a count of supplies on hand indicated a $2,000 balance on hand. 12/31 Supplies expense 5,000 (1,000+6,000-2,000) Supplies 5,000 They used $5,000 supplies during the year and 2,000 in supplies account by the end of year, 5. They paid employee every Saturday with a daily payroll of $10,000. The last day of the year is Wednesday, December31. 12/31 Wages expense 30,000 Wages payable 30,000 6. By the end of the year, they have performed $10,000 service but not yet billed and collected from the customers. 12/31 Accounts receivable 10,000 Service revenue 10,000 7. They incurred $6,000 utility expense by the end of the year but not paid the bill yet. 12/31 Utility expense 6,000 Accounts payable 6,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren

3rd Edition

0131800345, 978-0131800342

More Books

Students explore these related Accounting questions