A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment. What is the book value of the equipment after 5 years using straight line method? Assume a scrap value of P22,000.
Q: The following data pertain to Charlie Company for the year ended December 31, 2018: Accounts Payable…
A: Formula used: Current ratio = Current Assets / Current liabilities. Division of current liabilities…
Q: ABC Corp showed the following information: Beginning inventory, 60,000 Purchases, 500,000 Purchase…
A: Cost of goods sold equals sum total of beginning inventory and purchases less the ending inventory ,…
Q: What are accounts that report amounts for only one period called? Hint: Accounts that will be closed…
A: The sales account contains the elements of the nominal account that has a credit balance; thus, it…
Q: Which of the following would probably be the appropriate allocation base for allocating overhead in…
A: Solution The manufacturing overhead means the indirect expenses that is incurred in relation to the…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: 18. Which of the following statements is most correct? a. The proper goal of the financial manager…
A: The managers hold fiduciary responsibility towards the shareholders. They act as the agents of…
Q: Suppose you are in the 25% marginal tax bracket and earn $15,000. Then a tax credit of…
A: Tax credit is the amount that the tax payer can immediately deduct.
Q: 4. Evaluate the firm's short-term solvency for 1998 by computing: a. Working Capital b. Current…
A: Solution:- a)Calculation of working capital as follows under:- Working capital is the difference…
Q: On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current…
A: Land and any other asset with an indefinite lifespan remain at cost. Fair value is not utilized to…
Q: On January 2, 2022, TITAN Company changed its inventory cost flow method to FIFO from average for…
A: As the question specified ignoring income taxes. The cumulative effect on retained earnings will…
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the…
Q: What is the value of revenue to have operating income of $100,000? Units 3,000 Per Unit Revenue…
A: Revenue to earn desired income of $100000 = (Fixed cost + Desired profit)/contribution margin per…
Q: 5. Jackie is a 50% partner in The Lunch Box. She is to receive a guaranteed payment of $30,000. If…
A: A partnership is an agreement where 2 or more people sign a partnership agreement to operate a…
Q: This is your first month working as a bookkeeper and you notice a discrepancy when trying to…
A: A new bookkeeping personal it is the duty to provide all the correct information to the senior…
Q: FIERY Company's December 31 year-end financial statements had the following errors: December 31,…
A: The amount of net profit remaining after dividends have been distributed out to the company 's…
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: At the beginning of current year, BLACKPINK Company had 480,000 P60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
Q: MGT 203 Assignment 2 WiFiCom Services completed these transactions during November 2017, its first…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: Statement of Owner's Equity - Statement of owner's equity includes amount contributed by the owner…
Q: The balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of…
A: The supplies expense for the period = supplies account before adjustment on December 31, 2007 -…
Q: Quicksand Company has set the following standards for one unit of product: Direct material…
A: Calculation of Material Quantity variance Material Usage variance = (Standard quantity of material…
Q: On January 31, 2022, RUBY Company agreed to pay the former president $300,000 under a deferred…
A: A change in accounting principle is the change in accounting from one accounting principle to…
Q: 5.) How much is adjusted Supplies on December 31, 2021?
A: The trial balance is a type of worksheet in which all the ledger accounts are entered on the debit…
Q: Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in…
A: The gain on sale of the land means when the land is sold at a higher price than the cost of the…
Q: Using Microsoft Excel, create an investment cash-flow diagram that will have a present zero using…
A: Present worth of the investment is the value of the investment which has been discounted the cash…
Q: Bruno Inc.'s Financial Statement for years 2014-2015. Compute for the Bruno Inc. Year 2015 Debt to…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: On December 31, 2021, BLACK MAMBA Company appropriately changed its inventory valuation method to…
A: First In, First Out Method: The accounting system known as "First In, First Out" (FIFO) requires…
Q: Unused office supplies Accrued utilities Rent revenue collected in advance Interest receivable…
A: The income statement represents the net income or net loss that is calculated by deducting the…
Q: 3. If the Carolina Hurricanes Owner were to suddenly shut down the PNC Arena, would he be better or…
A: Introduction: Operating expenses are expenditures directly connected to day-to-day company activity,…
Q: Crane, Inc. reported net income of $2.65 million in 2022. Depreciation for the year was $169,600,…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: Chancellor Limited provided a loan of $1 500 000 to its subsidiary Park Limited. On consolidation,…
A: In consolidated financial statements the intra group receivable and payable are to be eliminated,…
Q: The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define…
A: Paytm treatment cost is the gap between the market price of assets held and the defined benefit…
Q: Outdoor Company expects to sell 6,500 units for $175 each for a total of $1,137,500 in January and…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Bond carries a part that is popular in the manufacture of automatic sprayers. Demand for this part…
A: Economic order quantity is a method that provides the number of units to be ordered for getting the…
Q: What constitutes "significant influence" when an investor's financial interest is less the 50%…
A: Significant influence means right to participate in financial and operating decision of an entity…
Q: 6. What is the depreciation expense for the year ended December 31, 2021? BLACK JACK Company…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: Expenses are the money paid towards business operations. These can be salaries, maintenance,…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: Total assets = current assets + book value of fixed assets book value of fixed assets = cost -…
Q: What is an account offset against another account called? For example, if the original cost of a…
A: A contra account is an account used to reduce the balance of a related accountThis will useful in…
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…
A: Note: Since the payment is being made on monthly basis, the effective rate of interest will be…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
Q: What is the package contribution margin? HINT: this is a dollar value so please round to the nearest…
A: Introduction: The amount of revenue related to the company's operating operations is known as…
Q: 4. What amount does Cadbury’s consolidated balance sheet report for this inventory at December 31,…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: select all that applies) Group of answer choices a) will never make an investment with a risk-free…
A: risk loving person who are seeking to take additional risky order to earn higher returns as well as…
Q: What is the net effect of the errors in FIERY’s December 31 retained earnings balance? A.…
A: Retained earning means the amount left in business after paying all expenses and dividend to…
Q: What is the term that refers to balance sheet accounts because they are relatively permanent and…
A: The balance sheet is the part of the financial statement that is prepared by considering all the…
Q: please show all work for calculations. Where $11,845 and $12,535 come from
A: The ready-for-sale stock you have leftover towards the conclusion of an accounting period is…
Q: Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (0) is 138…
A: The answer is stated below:
Q: What is the weighted average number of ordinary shares outstanding that should be used for the…
A: Weighted Average Number of Shares The Calculation of Weighted average number of shares which can be…
A plant bought a new equipment for P220,000and used it for 10 years, the life span of the equipment. What is the book value of the equipment after 5 years using
Step by step
Solved in 3 steps
- 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.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.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 $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.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.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. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
- Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.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.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 $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.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.Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last for ten years, Alfredo knows the technology will become old quickly, and so they plan to replace this printer in three years. At that point, Alfredo believes it will be able to sell the printer for $15,000. Calculate yearly depreciation using the double-declining-balance method.