Accounting Task

Question 4 If a tenant pays a security deposit for rental of an apartment, how does the landlord account for that deposit? Why? A landlord accounts for the security deposit by debiting the asset account Cash. The landlord also credits the liability account security deposits returnable The landlord accounts for the security deposit this way, because the amount is supposed to be sent back to the tenant at the end of the contract term. However, the amount to be returned is calculated after deducting the value of the damage done by the renter in the house. Question 6 Larry Corporation made a credit sale of $30000 which are subject to 6% sales tax. The corporation also made cash sales which totalled $20670 including the 6% sales tax. Prepare the entry to record Larry’s credit sales Prepare the entry to record Larry’s Cash sales Question 7 Both the current ratio and the acid quick test ratio essentially