how do i enter this transaction in the accounting equation 'Mr. Prince applied to open an account at Polka-Dots (Pty) Ltd. A limit of R2 000 was approved by management?"
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- MontyCorporation purchased the net assets of Wildhorse Corporation on January 2, 2020 for $ 621,600 and also paid $ 22,200 in direct acquisition costs. Wildhorse's balance sheet on January 1, 2020 was as follows: Accounts receivable-net Inventory Land Building-net Equipment-net Total assets $ 199,800 399,600 44,400 66,600 88,800 $799,200 Current liabilities Long term debt Common stock ($1 par) Paid-in capital Retained earnings Total liab. & equity $ 77,700 177,600 22,200 477,300 44,400 $799,200 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 439,600, $ 54,400 and $ 78,800, respectively. Wildhorse has patent rights valued at $ 22,200.Assume a company has a $350 credit ( not cash) sale. How would the transaction appear if the business uses accrual accounting ?Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021. Violation: (Yes/No) Applicable Assumption/Principle: b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books.…
- On January 1, 2023, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,175,500. Following is the statement of financial position of Sheffield Ltd. from the company's year-end the previous day: Sheffield LTD. Statement of Financial Position As at December 31, 2022 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land $670,000 561,000 2,510,000 2,110,000 2,550,000 $8,401,000 $311,000 2,560,000 5,530,000 $8,401,000 Accounts payable $559,900 2,270,000 1,955,000 3,600,000 300,400Falcon Incorporated has the following transactions with Wildcat Corporation. Transactions Falcon’s Related Account 1. Falcon purchases common stock of Wildcat. 2. Falcon borrows from Wildcat by signing a note. 3. Falcon provides services to Wildcat. 4. Falcon pays interest to Wildcat on borrowing. Investment Notes payable Service revenue Interest expense Required:1. For each transaction, indicate whether Falcon would report the related account in the balance sheet or income statement.2. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders’ equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense.3. Indicate whether each transaction is classified as operating, investing, or financing activity.Do items reported as a credit memorandum on the kink statement represent (a) additions made by the hank to the companys balance or (1)) deductions made h the hank from the companys balance? Explain.
- In 20X1, FYY Ltd. purchased 2,400 shares of Humor Inc. for $74,400 plus $2,400 in commission. The shares had a fair value of $88,000 at the end of 20X1, $95,900 at the end of 20X2, and $11,850 at the end of 20X3. In 20x4, the shares were sold for $102,700 less $2,400 in commission. In each of 20X1, 20X2, and 20X3, dividends of $5,760 were received. Required: 1. Prepare journal entries for 20X1 to 20X4, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Assuming FYY reports using ASPE and the cost method. View transaction list Journal entry worksheet 2 3 4 5 Record the investment made in Humor Inc. Note: Enter debits before credits. Transaction General Journal Debit Credit 20X1 Record entry Clear entry View general journalPlease provide a solution in good accounting form. What is the unearned franchise revenue? a. 879 080 b. 512 5001. Bad debts are recognized on both accrual and cash basis of accounting. True of False?2. Adjusting entry is required to comply with the generally accepted accounting principles regarding revenue recognition and matching principle. True or false?3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Insurance Expense and (CR) Cash. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles
- See the image below. Please provide some solutions so that I can verify that I solved the problem correctly. Question: The effect on 2018 net income of Lukas Company of its failure to record the CM involving transaction with Falcon amountedSuppose your company sells services of $350 in exchange for $220 cash and $130 on account. Depreciation of $150 relating to equipment also is recorded Required: 1. Prepare the journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet Record the service revenue of $220 for cash and $130 on account. Transaction Record entry General Journal Clear entry Debit CreditWhich sentence is incorrect? Select one: a. According to the GAAP in Accrual-Basis Accounting, companies recognise revenues when they perform for their services. b.The Accrual and Cash-basis accounting are in accordance with generally accepted accounting principles. c.In the Accrual-Basis Accounting, expenses are recognized when incurred. d. IFRS & GAAP use the same process for recording transactions.
