Accounting Answers

Debit Cash

Credit Refundable Advance

• What does this journal entry mean?

Debit Refundable Advance

Credit Pledge receivable - with donor restrictions

Credit Revenue - with donor restrictions

• What does this journal entry mean?

Debit Cash - with donor restrictions

Credit Pledge receivable - with donor restrictions

• What does this journal entry mean?

Debit Satisfaction of use restriction - with donor restriction

Credit Cash - with donor restriction

• What does this journal entry mean?

Debit Cash - without donor restrictions

Credit Satisfaction of use restriction - with donor restriction.

• What does this journal entry mean?

Debit Construction in progress

Credit - without donor restrictions

• What does this journal entry mean?

If you debit Refundable Advance, what account would you normally credit associated with the Refundable Advance?

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer's loved ones. The inflows arises from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income

On December 31, 2020, BROWN Bank has a 5-year loan receivable with a face value of ₱6,000,000 dated January 1, 2019 due on December 31, 2023. Interest is payable annually every December 31 at 9%. The borrower made the required interest payment on December 31, 2019 but informed the bank that interest accrued for 2020 will be paid together with the principal at maturity. There is a high probability that remaining interest payments will not be paid. The prevailing market rate is 10%. What is the loan impairment loss for 2020? (Round PV factors to 2 decimals) 

which accounts are credit and debit in the nominal section

A business firm purchased two machines on 1st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1st December 2019 for Sh.250,000.

b) Provision for depreciation account for machinery        

c) Disposal of machinery account                               

A business firm purchased two machines on 1^st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31^st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1^st December 2019 for Sh.250,000.

Required: 

1. Machinery account                                          (3 marks)
2. Provision for depreciation account for machinery                 (3 marks)
3. Disposal of machinery account   

the accounting equation

Debit Compensation Expense - Stock Option

Credit Additional Paid in Capital - Stock Option

• What does this journal entry mean?

Debit Additional Paid in Capital - Stock Option

Credit Additional Paid in Capital - Expired Stock Option

• What does this journal entry mean?

Petra Paddles Company is budgeting for Quarter 3 (July, August and September). These are busy months, so it is important to get the numbers right and to come up with a good plan. This company sells kayaks and does 4-hour Kayak tours. Petra charges $120 for tours and kayaks are sold as a package for $3,000 each (includes a life jacket, a paddle, safety gear and the kayak). Based on last year’s sales, Petra estimates that she will sell 12 kayaks in July, 7 in August and 5 in September. All of these are expected to be cash sales. Each kayak package costs $2,700. 

Every year, a large group of 20 people returns for a tour in July. This group has already prepaid for their booking. This tour and all other projected bookings are included below:

July

August

September

Budgeted number of tours to complete

445+20 =465

400

250

I

Total Revenue and Marginal Revenue. Also, explain the relationship between AR and MR?