The company has a December 31, year end..
($) Land 50000 Note Receivable 40000 Prepaid insurance 48000 Machine 20000 Rent Revenue 220000 Supplies expense 12000
Question
1. The company has a $100,000 payroll each week and employees have a 5 day work week. December 31 is on a Thursday.
2. The note was signed on April 1, bears 4% interest, and is due in 3 years.
3. Rent was collected on Oct 1 for a ten month rental of a building that the company no longer uses in its own operations.
4. the insurance policy was purchased on Sep. 1 and is for 1 year of coverage.
5. Depreciable assets have a 10 yrs life and salvage value of 2000. The straight line method is used.