WebThe journal entry would look like this: We increased the checking account by the amount of cash received and we increased a liability that represents the amount of revenue collected that hasn’t actually been earned … WebStep 1:- when the expense is incurred. Organizations incur the expense in a particular accounting period and own debt but have not yet been billed. We need to record this expense as an accrued liability in the books of accounts. We need to debit the expense account. This debit entry will increase expenses.
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WebIn this journal entry, lawsuit payable account is a contingent liability, in which it is probable that a $25,000 loss will occur. This leads to the result of an increase of liability (credit) … WebFeb 10, 2024 · Customers redeemed coupons with a discounted face value for meals as follows: January, $1,600; February, $2,300; March, $2,100. a. Prepare journal entries for January, February, and March to reflect the above information. b. What effect, if any, do the coupon sales and redemptions have on the liabilities on the March 31 balance sheet?
WebOn December 31, 2024, at what amount should the company report as the liability for this land? On December 31, 2024, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Prepare the journal entry on the payment of interest expense on December 31, 2024. Web750 water bottles potentially defective x $4 replacement cost = $3000 estimated warranty liability That is all there is to it. Recording the expense and the liability as an adjusting journal entry. Recording customer warranty claims When a customer requests a repair or replacement under warranty, the customer files a claim.
WebThis cost is estimated to be $17 million (the present value of which is $6.5 million). What is the journal entry required to record the asset retirement obligation? a. No journal entry required. b. Debit Natural Gas Facility for $17,000,000 and credit Asset Retirement Obligation for $17,000,000 WebThe practice of discounting and the use of coupons has grown substantially in recent years and some operators have expanded their use of discounts and coupons to the point that discounted sales sometimes run well in excess of 10% of gross sales. As discount sales make up a larger portion of gross sales, how they are accounted for and reported on a …
WebOct 2, 2024 · Problem Set A PA1.. LO 13.3On January 1, 2024, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate.Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment?
WebThe retailer experiences a $200 loss per sale for each rebate coupon it has to pay out. When it redeems a coupon, it debits the liability for incentive claims account for $800 … touched massage therapiesWebThe liability should be reported as $20,000 at the end of Year Two. Second, the $2,200 difference between the amount received and the eventual repayment ($20,000 less … potop filmwebWebApr 6, 2024 · Rebates should not be confused with coupons. Rebates are retroactive. Coupons are discounts on existing or future purchases that take place at the time of purchase. But, the accounting for coupons depends on the timing of payment itself. For example, if a coupon discounts the price immediately, then it’s recorded as a reduction … potop hoffmanaWebSuppose ABC company issues a bond at a par value of $ 100,000 and a coupon rate of 5% with 5 years maturity. The market interest rate is also 5%. Let us calculate the PV of bond principal payment and interest component first. PV of bond = $ 100,000 × (0.78355) = $ 78,355. PV Factor 5%, 5 years = 0.78355. Coupon/Interest = $ 100,000 × 5% ... touched massage therapyWebSep 9, 2024 · The rule of journal entry requires the total of debits and credits to be equal, but the number of credits and debits do not have to be equal. For example, there may be one debit but two or more credits, or … touched meaning crazyWebJan 25, 2013 · Accounting for premiums and coupons issued with the sale of a product to promote the product, example is where a manufacturer includes in sale of their produ... potop glowny bohaterWebNov 4, 2024 · If you use double-entry accounting, you must record your advertising expense when you receive an invoice.And, you need to make a separate entry when you pay the invoice. Once you receive your invoice, you need to debit your advertising expense account and credit your accounts payable account. You debit your advertising expense account … potop hoffman cda