BUSINESS MIDDLE SCHOOL

Exercise (2):Javier Computer Services began operations in July 2017. At the end of the month, the company prepares monthly financial statements. It has the following information for the month.
1. At July 31, the company owed employees $1,300 in salaries that the company will pay in August.
2. On July 1, the company borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%.
3. Service revenue unrecorded in July totaled $2,400.
Required:
Prepare the adjusting entries needed at July 31, 2017.

Answers

Answer 1
Answer:

Answer:

 

                    Amount in $  

                                              Dr.          Cr.

Salaries Expense   1,300  

Salaries Payable       1,300

   

Salaries to be paid in august    

   

Bank             20,000  

Long term loan       20,000

   

Loan received from bank on a 10 year note    

   

Interest Expense   200  

Interest payable      200

   

Expense on loan for 10 years ( 20,000 *.12*1/12)    

   

Revenue           2,400  

Receivable             2,400

   

Unrecorded revenue    

Explanation:

1. Salaries are payable in august so a payable will be recorded for the amount. and  an expense will be booked for the month.

2. Since this loan is for a period of more than 12 months so it will be treated as long term and interest on it will be calculated as mentioned above.

3. Unrecorded revenue will be recorded at mentioned above.

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Moser had no automobile liability insurance, although it was required by state law. She negligentlycollided with Chang's car. Chang threatened to sue if Moser failed to pay $1000 for pain and suffering
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Answers

Answer:

A. Chang has the legal right to sue for damages.

B. Moser cannot get out of the contract due to duress.

Explanation:

Chang has the legal right to sue for damages that occurred due to the accident, this is because it is stated that Moser negligently collided with Chang's car.

Moser cannot get our of the contract due to duress because Chang did threaten to sue Moser for what directly had to do with the incident. If Chang had threatened to sue Moser for something else entirely, then Moser can claim duress. Also, Moser can't claim duress, especially since she had no insurance.

Trend analysis is analysisa.
of dollar changes and percentage changes over several years.

b.
in which all items are presented as a percentage of one selected item on a financial statement.

c.
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d.
of all ratios that increased or decreased over past accounting periods.

Answers

Answer:

Trend analysis is analysisof dollar changes and percentage changes over several years.

Explanation:

A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future.

It’s ( of dollar changes and percentage changes over several years. )

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Answers

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Answers

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