2 to rec ord deprec iation on offic e building 330000

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Unformatted text preview: nation: a. 2. To rec ord deprec iation on offic e building ($330,000 / 25 y ears ) × 1 / 12 = $1,100). 4. To rec ord ins uranc e ex pens e ($1,800 / 12 months = $150). b. Net inc ome $62,650 Inc reas e ($64,000 + $3,500 – $1,200 – $1,100 – $150 – $2,400). 8. aw ar d: 1 out of 1.00 point Ventura Company adjus ts its ac c ounts monthly and c los es its ac c ounts on Dec ember 31. On Oc tober 31, 2011, Ventura Company s igned a note pay able and borrowed $120,000 from a bank for a period of s ix months at an annual interes t rate of 9 perc ent. a . How muc h is the total interes t ex pens e over the life of the note? How muc h is the monthly interes t ex pens e? (As s ume equal amounts of interes t ex pens e eac h month.) (Do not round your inte rm e dia te ca lcula tions a nd round your fina l a nsw e r to ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview 7/16 1/23/2014 Assig nment Pr int View Total interes t ex pens e Monthly interes t ex pens e $ 5,400 $ 900 b. In the c ompany 's annual balanc e s heet at Dec ember 31, 2011, what is the amount of the liability to the bank ? (Om it the "$" sign in your re sponse .) Bank liability $ 121,800 c. Prepare the journal entry to rec ord is s uanc e of the note pay able on Oc tober 31, 2011. (Om it the "$" sign in your re sponse .) General Journal Oc t. 31 Debit 120,000 Ca sh Note s pa ya ble Credit 120,000 d. Prepare the adjus ting entry to ac c rue interes t on the note at Dec ember 31, 2011. (Do not round your inte rm e dia te ca lcula tions a nd round your fina l a nsw e r to ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) General Journal Dec . 31 Inte re st e x pe nse Inte re st pa ya ble Debit 900 Credit 900 e . As s ume the c ompany prepared a balanc e s heet at Marc h 31, 2012. State the amount of the liability to the bank at this date. (Om it the "$" sign in your re sponse .) Bank liability $ 124,500 W orksheet Learning Objective: 04-02 Des cribe and prepare the four bas ic types of adjus ting entries . Learning Objective: 04-01 Explain the purpos e of adjus ting entries . Learning Objective: 04-05 Prepare adjus ting entries to accrue unpaid expens es . Ventura Company adjus ts its ac c ounts monthly and c los es its ac c ounts on Dec ember 31. On Oc tober 31, 2011, Ventura Company s igned a note pay able and borrowed $120,000 from a bank for a period of s ix months at an annual interes t rate of 9 perc ent. a . How muc h is the total interes t ex pens e over the life of the note? How muc h is the monthly interes t ex pens e? (As s ume equal amounts of interes t ex pens e eac h month.) (Do not round your inte rm e dia te ca lcula tions a nd round your fina l a nsw e r to ne a re st dolla r a m ount. Om it the "$" sign in your re sponse .) Total interes t ex pens e $ 5,400 Monthly interes t ex pens e $ 900 b. In the c ompany 's annual balanc e s heet at Dec ember 31, 20...
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This note was uploaded on 01/23/2014 for the course ACC 111 taught by Professor Angela during the Fall '08 term at Delaware County CC.

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