Friday, 17 May 2019

Mune Company Essay

Mune Company put down journal entries for the declaration of $50,000 of dividends, the $32,000 append in accounts receivable for operate rendered, and the purchase of equipment for $21,000. What net effect do these entries have on equity? Decrease of $18,000.Maso Company recorded journal entries for the issuance of ordinary shares for $40,000, the payment of $13,000 on accounts payable, and the payment of salaries expense of $21,000. What net effect do these entries have on equity? Increase of $19,000.During the first year of Wilkinson Co.s operations, all purchases were recorded as assets. Store supplies in the amount of $19,350 were purchased. Actual year-end store supplies amounted to $6,450. The adjusting entry for store supplies will increase expenses by $12,900.Panda Corporation paid cash of 18,000 on June 1, 2010 for one years use up in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2010 adjusting entry is debit Rent Expense and credit Prepaid Rent, 10,500.Recording the adjusting entry for depreciation has the same effect as recording the adjusting entry for a prepaid expense. An accrued expense can best be depict as an amount not paid and currently matched with earnings.A document prepared to prove the equivalence of debits and credits after all adjustments have been prepared is the Adjusted trial balance.Under International financial Reporting Standards (IFRS) the book of original entry is also known as the Journal

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