Prepare all journal entries and adjusting journal entries necessary to record the information below for year 2022:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Prepare all journal entries and adjusting journal entries necessary to record the information below for
year 2022:
On November 15, 2022, WTG purchased a patent for $49,500.
It used an installment loan to purchase the patent.
Payments are due on May 15 and November 15 of every year (so the first payment is due May 15
next year) for the next 5 years.
The interest rate is 7%.
See amortization table below:
■
Patent Loan Amortization
Principal
Interest
Years
Payments/year
Payment
Date
5/15/23
11/15/23
5/15/24
11/15/24
5/15/25
11/15/25
5/15/26
11/15/26
5/15/27
11/15/27
$49,500
7%
5
2
5,952
Interest Principal Payment Balance
49,500
5,952
45,281
5,952 40,913
5,952
36,393
5,952
5,952
5,952
5,952
5,952
5,952
5,952
1,733
4,219
1,585 4,367
4,520
4,678
4,842
941
5,011
765
5,187
584
5,368
396 5,556
201 5,751
1,432
1,274
1,110
31,715
26,873
21,862
16,675
11,307
5,751
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