Answer:
Journal Entries
1) Debit Salary Expense $6,667 Credit Bank $6,667
2) Debit Fuel and Maintenance Expense $600, Credit Bank $600
3) Debit Depreciation Expense $amount Credit Accumulated Depreciation $amount
4) Debit Insurance Expense $amount Credit Bank $amount
5) Debit Benefit Expense $amount Credit Accrued Benefit Expense $amount
6) Debit Accounts Receivable (total of all trips) $amount Credit Service Revenue $amount
Explanation:
The prompt is not complete, but I will create typical journal entries for the transactions without numerical figures.
1) The salary represents one month, and the in brackets is a $80,000*1/12 calculation showing that the $80,000 is annual; should this have been already recorded, we would debit salaries payable $6,667 and credit bank $6,667
4) Insurance expense is debited if paid as incurred, but if there's a Prepaid Insurance account, we credit the Prepaid Insurance account instead of Bank.
a. The current total asset value for Klingon is calculated as follows: total assets equal net fixed assets plus current assets. Here, net fixed assets are $3,400,000, and current assets total $1,130,000, which is derived from net working capital plus current liabilities ($235,000 + $895,000). Hence, total assets amount to $3,400,000 + $1,130,000, leading to a total of $4,530,000. b. The market value of net working capital stands at $1,150,000, and the market value of fixed assets is $5,100,000. Therefore, when these figures are combined, the total fair market value amounts to $1,150,000 + $5,100,000, which equals $6,250,000.
