Preparing journal entry for recording performance of services (Accounting assignment Help)

Robin Corporation accepted credit cards for $34,200 of services performed in October 2011.The credit card company charged a 3% service fee and paid Robin as soon as it received the credit card receipts. a) Prepare the general journal entry to record performance of the services. b) Prepare the general journal entry for collection of the receivable from the credit card company.

Date	Account title and description	Ref	Debit	Credit
October 2011	Accounts receivable - Card issuer    Dr     To sales -    services rendered		$34200	$34200
Oct 2011	Cash A/C              Dr Credit card expense a/c          Dr (for commission of 3% on $ 34200 charged by bank ) To Accounts receivable-      card issuer		$34174 $1026	$34200

 Visit http://assignmentdesign.com or mail to contact@assignmentdesign.com for help on  assignments over a wide range of subjects.

Avail Accounts Assignment Help at  http://goo.gl/eNe4R from accounting experts.  

Tangible and Intangible Assets & Advantages of establishing a line of credit

Tangible and Intangible Assets

Tangible assets are the economic resources of a firm, whose existence can be physically felt or perceived.

Examples: Inventory, land and buildings and plant and machinery.                    

Intangible assets are non physical economic resources and rights, which carry a value with them and confer some advantage on the firm in the market place.

Examples: Goodwill, copyrights, patents and trademarks.

       In accounting, it is only the tangible assets that are found in the balance sheet. Intangible assets do not find a place in the balance sheet of the firm. But while calculating the value of the firm in the market, the intangible assts are also taken into account.

Advantages of establishing a line of credit

A line of credit is a commitment from the bank to lend the firm up to a certain amount to meet various financial needs. It provides an opportunity for the firm to establish access to credit even before the exact expenditure decisions are finalized. It is more flexible than a loan, which makes finance available for a specific purpose. It can be used for different purposes. It need not be drawn at a time like a loan, but can be used as and when the need arises. The line of credit is thus the most flexible and comfortable financing arrangement for a firm to take care of its present and future needs as well as contingencies.

    Visit http://assignmentdesign.com or mail to contact@assignmentdesign.com for help on  assignments over a wide range of subjects.

Avail Accounts Assignment Help at  http://goo.gl/eNe4R from accounting experts.  

                                       

Accounts Assignment help/ Homework Help Questions

1. After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of $215,000, Uncollectible Accounts Expense has a balance of $17,500, and Allowance for Doubtful Accounts has a balance of $12,500. What is the net realizable value of the accounts receivable?

(contact us for assistance for  solution)

2.In January 2011, Rogers Co. purchased a machine that cost $85,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000. a) Compute the amount of depreciation expense for 2011 and 2012 using the double declining balance method. b) Compute the amount of MACRS depreciation for the above equipment for 2011 assuming the property is 5 year property and the MACRS percentage is 20%.

(contact us for assistance for  solution)

 Visit http://assignmentdesign.com or mail tocontact@assignmentdesign.com for help on  assignments over a wide range of subjects.

Avail Accounts Assignment Help at  http://goo.gl/eNe4R from accounting experts.