A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a life of 10 years. Assume an interest rate of 8% What is the depreciation allowance in years 1-10 for this asset using straight line depreciation?
Q: Which cost incurred on equipment does not belong to the group? Freight on acquisition of…
A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…
Q: Tallent, Inc. has outstanding convertible bonds with $20 million face value, $19.5 million book…
A: When bonds are converted into equity shares then the book value of the bond is debited and stock…
Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…
A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
Q: 2. A credit sale of P750 is made on June 13, term 2/10, net/30. A return of P50 is granted on June…
A: The credit sale is the selling of goods & services without receiving the consideration of…
Q: How much is the capital balance of May after the withdrawal of Julie?
A: The withdrawal from the partnership means when the partner leaves the partnership. The capital…
Q: Baker Furniture Company provided the following manufacturing costs for the month of June Direct…
A: Lets understand the basics. Cost are divided into two parts to know its nature. (1) Variable cost…
Q: (a) Elucidate price and output determination under any two non-collusive models of Oligopoly.
A: The word oligopoly is derived from a combination of 2 Greek words; 'oligos' which means "few" and…
Q: ent which cost $250,000. Freight and installation charges cost him P31,000. If the life of the…
A: The answer has been mentioned below.
Q: PP operates a convenience store while she offers bookkeeping services to her clients. In 2020, her…
A: Gross sales amount, in this case, means the amount received from the total number of transactions at…
Q: Calculate the debt-to-equity ratio. Ernst Company's balance sheet shows total liabilities of…
A: Debt = total liabilities = $32,500,000
Q: Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:…
A: Earnings per share can be defined as the ratio of net income available for common shareholders and…
Q: On November 30, the company's finished-goods inventory, which is evaluated using the first-in,…
A: Work in progress Opening Balance of raw material and purchased Parts = $6,68,000 In the month of…
Q: Problem 2. A weekly payroll summary made from time tickets shows the following da A weekly payron…
A: Journal entry is the entry which is made at the time when-ever a business transaction takes place.…
Q: d contrast a manual accounting system with a computerized accounting system for process vendors…
A: manual accounting system requires the acting accountant or bookkeeper to post business transactions…
Q: Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO…
A:
Q: Define return on sales ( or profit margin).
A: Financial ratios represent the accounting ratios computed by the management by using elements of…
Q: Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of…
A: Formula: Debt ratio = ( Total liabilities / Total Assets ) x 100
Q: Compare the Solvency, Liquidity and Profitability for the two companies
A: Solvency of any company is the ability of the company to run its day to day operation. The solvency…
Q: All of the following, except one, are requisites in the carry-over of net operating loss? There…
A: Carry over of Net operating Loss: It is the provision for tax that allows organization to carry…
Q: QUESTION 8 If Nim Com Soup, Inc.'s, variable costs per unit decrease, while selling price per unit…
A: Since, Selling price - Variable Cost = contribution margin
Q: The equity section of Manda Corp. is shown below: 8% preferred stock, P100 par value, authorized and…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Aqua Corp. was incorporated on June 1, 2014 with an authorized 250,000 share of no-par ordinary…
A: Common stock means the amount raised against which the dividend is paid but after paying interest on…
Q: If a retailer has revenues of $700,000, cost of goods sold that total $270,000, and operating…
A: The net income or loss is calculated as difference between revenues and expenses for the period.
Q: In the month of June, Jose Hebert's Beauty Salon gave 3,800 haircuts, shampoos, and permanents at an…
A: The contribution margin is calculated by deducting the variable cost from the sales revenues of the…
Q: e and explain activities alonc n them in det core activity.
A: Value chain refers to the concept which elaborates the range of activities involved in transforming…
Q: What company is better in short-term and why
A: Accounting Ratios- Accounting Ratios are the ratios that are used to compare financial statements of…
Q: Natasha gets stake in Big Red Airline Corporation from her Uncle Tony's inheritance. On August 2,…
A: Basis of stock for Sonya is $2,000 because it's based on the value on the date of owner's death…
Q: Bonus to new partner O Asset revaluation Asset market value Bonus to old partners
A: Here discuss about the details of admission of new partners and share of agreed capital compare with…
Q: Suppose, at a given point in time, Snappy Snack Shack operates in a perfectly competitive market.…
A: MR = MC = Price at profit maximizing level of output in competitive firm. Hence P > ATC means ,…
Q: On September 1, 2021, Laguna Grill determined that it will need to purchase 100,000 kilos of tuna…
A: A forward contract means the contract which is used to protect against the price increase in the…
Q: d 25,000 shares at P22 per share. d 1,000 shares for legal service when the d 5,000 shares for a…
A: Share premium refers to the sum value of money received by a company over and above the actual par…
Q: Prepare a General Journal entry for the following transaction: On December 17, On Your Mark paid…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Choose which option (Option 1- Option 3) was used to calculate the contract cost for any number of…
A: Contract costing is a part of job costing. It refers to the determination of costs related to a…
Q: FDN Trading had an initial cash balance of P150,000 at the start of the month representing the…
A: Received P700,000 in service revenue for the month. Increase in cash P700,000 Increase in revenue…
Q: Explain Long-term liabilities?
A: The balance sheet of the business represents the financial position of the business with assets and…
Q: Using the accounting equation, compute the missing amounts for each of the following companies.…
A: Assets=Liabilities+Stockholders' Equity
Q: 4-12. On January 1, 2020, Byron, Inc. purchased 30% of the outstanding ordinary shares of Pirates…
A: Journal entries are used by the companies, firms, NPO, etc. to keep a record of the transactions…
Q: Mauka, Inc. provided the following income statement for last year: Sales $24,350,735 Cost of goods…
A: Formula: Times Interest earned ratio = Operating income / Interest expense Division of Interest…
Q: 1. Downing Company issues $1,000,000, 12%, 10-year bonds on January 1, 2020. The bonds pay interest…
A: Issue price of the bond means the true/intrinsic value of the bond. In other words, it means the…
Q: omplete the FWT column (wage-bracket method) and SWT column of the payroll register using the…
A: Federal withholding tax is the amount of tax that is withheld by the employer from the pay of the…
Q: May and Jun are partners with profit and loss ratio of 75:25 and capital balances of P480,000 and…
A: When there is partnership among the partners there is agreement to share this as well as the reward…
Q: How many common shares are unissued? 5. How many common shares were re-acquired by the company? 6.…
A: Given in the question: Authorized Preferred Number of stocks = 2,000 Authorized Common Number of…
Q: Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four…
A: Activity-based costing is a method of allocating indirect costs to the different departments. These…
Q: Hong 250,000 190,000 #2| 80,000 30,000 3,000 40,000
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.…
Q: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…
A: Note: When commercial substance exists in the exchange of assets transaction, new assets are…
Q: Susan owes $2,400 to Fancy Flowers for arrangements purchased last week. For Fancy Flowers, the…
A: The account receivables tells about the amount due to be received from customers. The account…
Q: State the different types of accounting.
A: Lets understand the basics. Accounting is a recording of transaction and event in books of account.…
Q: Which is NOT CORRECT when the Capital Adjustment account is used in the recording of partnership…
A: the capital account of partner according to the adjustment to the capital account shall be increased…
Q: ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65.…
A: The initial cost is the total cost that is associated with the purchase price of an asset. The…
Q: Can you explain and give examples of the key state assets that fall in the federal government…
A: Answer:- Stewardship of state resources meaning:- The term "stewardship of state resources" refers…
Step by step
Solved in 2 steps
- A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.
- Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
