A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated depreciation on the equipment amounted to $1,000 Journal Entry
Q: Lake Company, organized in 2020, has the following transactions related to intangible assets in that...
A: The question is related to Intangible Assets. The intangible assets will be amortised over a period ...
Q: Required: 1. How much is the net working capital of ABC Company? 2. Is it positive or negative?
A: Net working capital refer to the aggregate amount of total assest and total liabilty.
Q: Bank Reconciliation The following data were accumulated for use in reconciling the bank account of N...
A: A bank reconciliation statement is prepared by the management at a particular time period. It helps ...
Q: A company has return on sales of 15% at sales of $400,000. Its fixed cost are $90,000; variable cost...
A: Solution.. Return on sales = 15% Sales = $400,000 Fixed cost = $90,000 Variable cost = $25 per ...
Q: A company sells three different products.The following inventory information is available on Decembe...
A: Inventory - Inventory is the value of assets held by the company not sold during the year. It is the...
Q: Bramble Company purchased equipment for $15600 on December 1. It is estimated that annual depreciati...
A: Introduction:- The following basic information given as follows:- Annual depreciation expense = $3,9...
Q: Barge Incorporated had Beginning inventory for the month that contained 2,000 units that were 70% co...
A: An equivalent unit of production is used in process costing. Process costing is used in that organiz...
Q: Which of the following statements is the most reasonable conclusion from the given information below...
A: Debt ratio indicates the portion of total liabilities against total assets. Higher the ratio, more t...
Q: Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability acc...
A: Introduction:- As per the company warranty policy, companies may promises customers to repair or rep...
Q: On December 31, the balance in the office supplies account is $1,235. A physical count shows $490 wo...
A: Balance in supplies account = $1235 Physical count = $490 Supplies expenses = 1235-490 = $745
Q: On July 1, 2022, Damlen Jurado Company pays $12.000 to its insurance company for a 2-year Insurance ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: What are the tax implications of the sale?
A: Solution:- Given, Chad takes a distribution of the CRP stock several years Stock value = $500,000 T...
Q: Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and Its dire...
A: Predetermined overhead rates are set in advance and are applied on activities in the manufacturing p...
Q: Requlred Informatlon Use the following information for the Exercises below. [The following informati...
A: Solution. Cost = $85,400 Salvage = $5,000 Production = 402,000 units over the useful life Prod...
Q: Retained earnings balance (January 1, 2019) Plus: Net profits after taxes (for 2019) Less: Cash divi...
A: Solution Concept Closing balance of retained earnings =opening balance + net income – dividend paid ...
Q: ARIZONA CORP. manufactured 1,000 units during April with a total overhead budget of P12,400. However...
A: Introduction: Fixed overhead is a collection of costs that do not change as a result of changes in a...
Q: Kevin Inc. issues P 10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid...
A: given that : Kevin Inc. issues P 10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. The...
Q: There is substantial modification of terms of an old financial liability if the gain or loss on exti...
A: As per IAS 39, in extinguishment accounting we will derecognise/extinguish existing liability and m...
Q: You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable ...
A: Current Liabilities are those liabilities which are due and payable within one year. Out of the item...
Q: Taylor deposits $1500 in an account earning 4.7% interest compounded annually. How much will Taylor ...
A: Future Value = Present Value x (1+ Periodic Interest Rate)^No. of Periods
Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...
A: Non-Controlling Interest: Non-controlling interest is a situation where an investor holds not exactl...
Q: Income statement preparation Adam and Arin Adams have collected their personal income and expense in...
A: Income and expenses statement in personal finance refers to the statement which comprises of all rel...
Q: urnal entries for Damle d Do not Indent manuall
A: Damien Jurado purchased an insurance policy for 2 years on 1st July 2022. Since the policy has been ...
Q: On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The in...
A: Working paper elimination entries are prepared in the consolidation process of group companies’ acco...
Q: Required Information (The following information applies to the questions displeyed below) Selected c...
A: A common size income statement is an income statement in which each line item is expressed as a perc...
Q: Explain in your own words the meaning of the terms in the figure from Unit 3 below: Assurance, Inter...
A: An audit refers to a process wherein the auditor examines or inspects numerous books of accounts in ...
Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At...
A: Consolidation Accounting It is the method to combine financial results of subsidiary companies into...
Q: On 3/1, a company buys $5,000 of merchandise with terms 2/10, n/15. On 3/7, the company returns $500...
A: >Journal entries are used to record transaction.>Purchase transaction is recorded byDebiting I...
Q: Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus o...
A: Solution.. Manager bonus = P280,000 Manager bonus = 10% of income after bonus and tax
Q: ulation of earnings available for common stockholders divided by common stock equity?
A: Shareholder Equity is the sum of Share capital and Shareholder funds ( Reserves and Surplus) . So it...
Q: What is Milson's rate of return on common stock equity for 2021?
A: Return on Common Equity = Net Income for Common Stockholders / Average Common Equity Net Income for ...
Q: On Jan. 1, 2014, a company placed into service a machine that had an acquisition cost of $60,000, a ...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: The condensed balance sheets of Sheffield Limited, a small private company that follows ASPE, follow...
A: Journal entry is the first step in process of accounting process which means recording of financial ...
Q: One element of the general transfer-pricing rule is opportunity cost. Briefly define the term 'oppor...
A: Opportunity cost is the benefit foregone from choosing the next best alternative in a decision makin...
Q: Calculate annual depreciation (straight line): $ Calculate depreciation for the year of sale. S Reco...
A: the acquisition cost of the mower $8000 life 4 years depreciation expenses per year 8000/4= 2000 (a...
Q: The current sections of Crane Inc.’s balance sheets at December 31, 2021 and 2022, are presented her...
A: Operating activities section of the statement of cash flows is used to represent the cash flow chang...
Q: 0.15 0.05 001 -0.03 -0.01 0.09 the expected returns of the two stocks? the standard deviations of th...
A: The term expected return of stock refers to the profit or loss amount which investor anticipates on ...
Q: How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) , ...
A: The inventory turnover ratio expresses the relationship between the average cost of goods sold durin...
Q: In an activity-based costing approach, a factor that causes costs is known as a а. cost activator O ...
A: Cost driver is the main root cause for the occurrence of cost. It has a higher impact on the total c...
Q: JSC Company reported accounts receivable P8,000,000 on December 31, 2020 and allowance for doubtful ...
A: Estimated uncollectible accounts = Accounts receivable x Uncollectible accounts % Doubtful accounts ...
Q: Bramble Inc., had the following condensed balance sheet at the end of operations for 2019. BRAMBLE ...
A: Prepairation of cash flow statement and balancesheet are as follows
Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years a...
A: Impairment loss is the decrease in the carrying amount of asset to its recoverable amount. Recoverab...
Q: A-A used piece of rental equipment has 1 1/2 years of useful life remaining. When rented, the equipm...
A: Time Value of money is the change in the value of money due to the increase in the value of money du...
Q: At year-end, Thor Company issued a P 1,000,000 face amount note payable in exchange for services ren...
A: >Note Payables are the liabilities. >It can be issued in case of: --when goods are pur...
Q: On July 1, 2022, Damlen Jurado Company pays $12.000 to its insurance company for a 2-year insurance ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Sylvestor Systems borrows $70,000 cash on May 15 by signing a 90-day, 5%, $70,000 note. 1. On what d...
A: Notes payable are the written agreement in which maker of the note promises to pay a certain amount ...
Q: What is the total non-controlling interest in net income of subsidiary (NCINI5) on Dec 31, 20x5?
A: As per our protocol, we provide the solution to the one question only but as you have asked two mult...
Q: Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its dire...
A: Formula: Total Manufacturing costs = Direct materials + Direct labor + Manufacturing overhead
Q: A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilitie...
A: Current ratio = Current Assets / Current Liabilities Quick Assets = Quick Assets / Current Liabiliti...
Q: a. Return on investment b. Owners' wealth C. Sales revenue
A: The financial objective of any business is usually growing in the profits and expansion of their bus...
A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the
company $1,000. The
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company had a building destroyed by fire. The building originally cost $650,000 and its accumulated depreciation as of the date of the fire was $300,000. The company received $400,000 cash from an insurance policy that covered the building and will use that money to help rebuild. Prepare the single journal entry to record the destruction of the building and the receipt of cash from the insurance company.A company purchased a commercial dishwasher by paying cash of $4,800. The dishwasher's fair value on the date of the purchase was $5,190. The company incurred $490 in transportation costs, $380 installation fees, and paid a $160 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher?A company purchased a computer that cost $10,000, It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and it was sold at the end of the second year of use for $5,000 cash. The company should record:
- The engine of a truck burned out and needed to be replaced two years after it was originally purchased. The original cost of the engine was $7,000 with a useful life of five years and salvage value of $1,000. The journal entry to record the disposal of the engine includes A credit to Cash for $7,000 A credit to Equipment (Truck) for $4,600 A credit to Equipment (Truck) for $7,000 A debit to Accumulated Depreciation for $1,000On January 1, 20x2, Kent Corporation purchased a machine for $50,000. Kent paid shopping expenses of $500 as well as installation costs of $1,200. The machine was estimated to have a useful life of 10 years and estimated salvage value of $3,000. In January 20x3, additions costing $3,600 were made to the machine in order to comply with pollution control ordinances. These additions neither prolonged the life of the machine nor did they have any salvage value. If Kent records depreciation under the straight-line method, depreciation expense for 20x3 is a.$4,870 b.$5,170 c.$5,270 d.$5,570Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $35,000 cash. Diaz sold the machine for $68,000 cash. Diaz sold the machine for $80,000 cash. Journal entry worksheet Record the disposal of the machine receiving nothing in return. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Journal entry worksheet Record the sale of the machine for $35,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Journal entry…
- Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,010, and the book value prior to the repair was $4,750. In addition, the company spent $6,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $89,300 and related Accumulated Depreciation account at $44,300. After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building? Book Value Shreddding Machine BuildingOn December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured “new to old” and was replaced by the insurance company with a new one currently selling at P560,000. The loss due to fire to be reported in the 2021 income statement isOn January 1, year one, Newport Corp. purchases a machine for $100,000. The machine is depreciated using the straight-line method over a ten-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Newport's year-one financial statements, resulting in a $10,000 overstatement of the book value of the machine on December 31, year one. The oversight was discovered during the preparation of Newport's year-two financial statements. What amount should Newport report for depreciation expense on the machine in the year-two financial statements? $10,000 $20,000 $11,000 $9,000
- A truck costing $114000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $129000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a credit to the Accumulated Depreciation account for $55000. credit to the Truck account of $59000. Gain on Disposal of $15000. Gain on Disposal of $70000.Swifty Company's delivery truck, which originally cost $83100, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57200. The company received $47300 reimbursement from its insurance company. The gain or loss as a result of the fire was $21400 gain. $35800 loss. $35800 gain. $21400 loss.Cottrell incurred the following costs related to its office building. You can assume all costs were paid in cash. (You do not need to record any depreciation related to the office building.) Installed a second air conditioner because it was determined that one air conditioning unit could not sufficiently cool the building, $7,000. Repaired and painted wall damage, $800. Replaced the building roof which was estimated to have a remaining life of less than 5 years, $37,000. The new metal roof should last a minimum of 25 years. Paid property taxes, $9,000.