Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help On October 3, 2018, Eric Cartman Enterprises purchased an Awesome-O 3000 robot from the Kyle Brozlofski Company for $10,000 on credit with payment

please help
image text in transcribed
On October 3, 2018, Eric Cartman Enterprises purchased an Awesome-O 3000 robot from the Kyle Brozlofski Company for $10,000 on credit with payment due in 30 days. On November 20, Cartman requested an extension because of cash flow difficulties. Brozlofski agreed on the condition that Cartman sign a 6-month, 9\% note payable. Cartman agreed and signed the note on December 1. 20. Refer to Eric Cartman Enterprises. Assuming the fiscal year ends on December 31 , an adjusting entry is needed to increase a. interest expense by $75. b. interest payable by $225. c. notes payable by $75 d. none of the above. 21. Refer to Eric Cartman Enterprises. Cartman's December 1 journal entry would a. debit accounts payable and credit notes payable. b. debit accounts payable and credit cash. c. debit notes payable and interest expense, and credit accounts payable. d. not be appropriate since no transaction has taken place. 22. A company purchased a building for $900,000 on January 1. The building is being depreciated over 40 years with an estimated residual value of $100,000. The company uses the straight-line method. What will be the book value of the building in 10 years (assuming a December 31 year end)? a. $575,000 b. $600,000 c. $675,000 d. $700,000 23. A manufacturing company's weekly payroll is $80,000 for a 5 -day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustmen is needed on December 31 , the last day of the company's fiscal period? a. Increase wages expense by $48,000. b. Decrease wages payable by $48,000. c. Decrease cash by $48,000. d. No adjustment is necessary since the next payday will not occur until the following year

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

Step: 3

blur-text-image

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

Financial Accounting IFRS Principles

Authors: Ilse Lubbe, Goolam Modack, Alex Watson

4th Edition

0199049238, 9780199049233

More Books

Students also viewed these Accounting questions