Fire insurance policy, A company has a fiscal year-end of

Fire insurance policy

Assignment Help Financial Accounting

Reference no: EM131258206

A company has a fiscal year-end of December 31: (1) on October 1, $16,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $14,000; principal and interest at 8% are due in one year; and (3) equipment costing $64,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $12,800 per year. If the adjusting entries were not recorded, would net income be higher or lower and by how much?

Reference no: EM131258206

Questions Cloud

Differences in upstream-downstream intercompany transfers : Discuss the differences in upstream and downstream intercompany transfers. Why are they used and when are they used? What are the pros and cons of each method?

Discuss what option of internal controls and audit trails : Discuss what option of internal controls and audit trails are available in EXCEL (in general) and how these work in terms of data accuracy, security, and integrity. List at least two examples for each of the internal controls procedure and the audit ..

Job-order costing system to determine its ending inventory : LB Enterprises uses a job-order costing system to determine its ending inventory and cost of goods sold. LB’s accountant estimated the manufacturing overhead for 1999 to be $595,200. The product the company makes is labor intensive and the estimated ..

Company uses the perpetual inventory method : The following events pertain to Happy Acres Garden Shop for October 2013. The company uses the perpetual inventory method. Record the following transactions in general journal form.

Fire insurance policy : A company has a fiscal year-end of December 31: on October 1, $16,000 was paid for a one-year fire insurance policy; on June 30 the company lent its chief financial officer $14,000; principal and interest at 8% are due in one year; and equipment cost..

What would the expected maintenance cost : Bosco Bonnet, a local trucker, owns and operates his own delivery service. He has 1990 1-ton truck. Bosco’s biggest expense lately has been maintenance on the truck. He is interested in budgeting his costs for the months ahead. Using the high-low met..

Define attributes of federal taxation law and business law : Describe and define the attributes of federal taxation law and business law: (a) provide their differences and similarities, (b) why is that important to the accounting, and (c) how does the accountant assure there not ptacticing law without a law li..

What are the pros and cons of state and local tax provisions : What are the pros and cons of the following state and local tax provisions?. An ad valorem property tax holiday made available to a manufacturing plant that is relocating. Hotel occupancy tax and a rental car surcharge

Considered product cost-true about period costs : Which of the following is considered a product cost? Which of the following statements is true about period costs?

User Account

All Pages