The Records of Horner Corp.show the Following Information

question 76

Essay

The records of Horner Corp.show the following information:
(a)Purchased a three-year insurance policy for $10,800 on September 1, 2013, and recorded the premium payment in the asset account.
(b)Borrowed $60,000 on a 1-year, 12% note on August 1, 2013. Interest is payable at maturity.
(c)Collected $8,400 on September 1, 2013, to cover six months' rent paid in advance, and recorded the receipt in a revenue account.
(d)Machinery purchased on January 1, 2013, for $600,000 is to be depreciated over four years, with no salvage value at the end of this period.
Prepare journal entries to adjust the books of Horner Corp.at December 31, 2013.

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Definitions:

Soybeans

A species of legume known for its edible bean, which has numerous uses including oil, meal, and livestock feed.

Total Revenue

The income that a company receives from selling its goods or services before any costs or expenses are subtracted.

Inverse Demand Function

Represents the relationship between the price of a good and the quantity demanded, showing the maximum price consumers are willing to pay for a specific quantity.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often defined as the percentage change in quantity demanded divided by the percentage change in price.