None 2Epic North Coffee (Eric Boyle, owner) started the year with a beginning capital balance of $20,000.During the year the business earned $40,000 of service revenue and incurred the following expenses:Advertising ExpensesRent ExpenseUtility ExpenseAmortization Expense-FurnitureDelivery Expense$1,5752,6501,9259241,800The owner withdrew $8,000 from the business.1) Prepare the closing entries for the year using the journal below.DateAccount TitleDebitCredit

The above answer can be explained as under -In the first entry, the service revenue is closed to…

Answered: 2 Epic North Coffee (Eric Boyle, owner)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Katsura Corporation incurred pre-operating costs: • Investigatory expenses of $17,000 • New employee training $25,000 • Advertising $10,000 • Land and building for use as a retail store when opened $150,000 Round your answer to 2 decimal places. Katsura wishes to maximize its deduction for start-up costs. Assuming they open for business on February 27th of the current year, what is the deduction for start-up costs?
i need help with this review Katsura Corporation incurred pre-operating costs: Investigatory expenses of $17,000 New employee training $25,000 Advertising $10,000 Land and building for use as a retail store when opened $150,000 Round your answer to 2 decimal places. Katsura wishes to maximize its deduction for start-up costs. Assuming they open for business on February 27th of the current year, what is the deduction for start-up costs?
Last year, Stone Builders, Inc. started work on a P10,600,000 construction contract which was completed this year. It has consistently used the percentage of completion method of recognizing income. Accounting data provided last year were as follows: Debit: Progress Billings P4,300,000; Credits: Cost incurred 3,450,000 Collections 3,900,000 Estimated cost to complete 3,630,000 What amount of this contract was recognized last year? Brave Corporation authorized Heart on January 1, 2010 to operate as a franchisee for an initial franchise fee of P2,500,000. Of this amount, P1,500,000 was received upon signing of the contract and the balance is due in two equal annual payments beginning January 1, 2011. The contract provides that the nonrefundable downpayment represents fair measure of the services already performed, however, substantial performance is still required of Brave. Collectibility of the note is reasonably certain. If the present value of the two annual payments is P895,000,…
rowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $108,000, $102,600, $122,400, and $82,800. Amber secured this amount by signing a note bearing 8% interest on June 1. Required: Question Content Area 1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank. 2. Determine how much interest Crowne will receive if the note is repaid on December 1. 3. prepare Crowne’s journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank. DO NOT GIVE SOLUTION IN IMAGE
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Ion Corporation, a calendar year C corporation, was formed on September 1, 2020, and opened for business on October 1, 2020. After its formation but prior to opening for business, Ion incurred the following expenditures. Accounting $10,500 Advertising 20,700 Employee payroll 12,800 Rent 4,000 Utilities 2,200 Round the per-month amount to two decimal places and use the rounded amount in subsequent computations. Round the final answer to the nearest dollar. Assuming the company makes the § 195 election, the maximum amount of these expenditures that Ion can deduct in 2020 is
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Freitas Corporation was organized early in 2016. The following expenditures were made during the first few months of the year: $ 12,000 3,000 20,000 2,000 30,000 40,000 Attorneys' fees in connection with the organization of the corporation State filing fees and other incorporation costs Purchase of a patent Legal and other fees for transfer of the patent Purchase of furniture Pre-opening salaries Total $107,000 Required: Prepare a summary journal entry to record the $107,000 in cash expenditures.
Windsor Company is constructing a building Construction began on February 1 and was completed on December 31 . Expenditures were $1.980,000 on March 1.$1,320,000 on June 1 and $3,300,000 on December 31 . Windsor Company borrowed $1,100,000 on March 1 on a 5 -year, 10% note to help finance construction of the building. In addition. the company had outstanding all year a 12%,5-year, $2,200,000 note payable and an 11%,4-year, $3,850,000 note payable. Compute avoidable interest for Windsor Company. Use the weighted-average interest rate for interest capitalization purposes. Avoidable interest $
Windsor Company is constructing a building Construction began on February 1 and was completed on December 31 . Expenditures were $1.980,000 on March 1.$1,320,000 on June 1 and $3,300,000 on December 31 . Windsor Company borrowed $1,100,000 on March 1 on a 5 -year, 10% note to help finance construction of the building. In addition. the company had outstanding all year a 12%,5-year, $2,200,000 note payable and an 11%,4-year, $3,850,000 note payable. Compute avoidable interest for Windsor Company. Use the weighted-average interest rate for interest capitalization purposes. Avoidable interest $ I am following the steps provided in the earlier solution but my answer and this answer don't match and my practice says both are wrong. How do I get avoidable interest?

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