
Statement of
Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
- Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
To Journalize: The interest at the effective rate. Also report the amount recorded by Company A, as on December 31, 2018, in the statement of cash flow if it uses direct method.

Want to see the full answer?
Check out a sample textbook solution
Chapter 21 Solutions
INTERMEDIATE ACCOUNTING (LL) W/CONNECT
- Suppose Vanessa Sound had sales of $448,000 and sales returns of $52,000. Cost of goods sold was $162,000. How much gross profit did Austin Sound report?arrow_forwardwhat should be reported as variable expenses inthe CVP income statement ? accountingarrow_forwardWhat was the percentage tare pf return on plan assets ?arrow_forward
- Acme Corporation's pension plan assets were$3,420 million at the beginning of the year and $3,880 million at the end of the year. At the end of the year, retiree benefits paid by the trustee were $78million and cash invested in the pension fund was $92 million. What was the percentage rate of return on plan assets? Answerarrow_forwardAcme Corporation's pension plan assets were$3,420 million at the beginning of the year and $3,880 million at the end of the year. At the end of the year, retiree benefits paid by the trustee were $78 million and cash invested in the pension fund was $92 million. What was the percentage rate of return on plan assets?arrow_forwardI need help with this general accounting problem using proper accounting guidelines.arrow_forward
- Darwin Systems sells a fixed asset for $126,000 when its book value is $149,000. If the company's marginal tax rate is 38%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow from the sale)?arrow_forwardCan you solve this general accounting question with the appropriate accounting analysis techniques?arrow_forwardAt year-end, Optima Supplies has assets equal to $145,000 and liabilities equal to $60,000. What is the total equity for Optima Supplies at year-end?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Financial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning



