A. Muharraq Industrial Co. purchased a Tradename for $ 240,000 on July 1, 2021. The Trademname is legally used for 20-year period Required: Prepare the journal entry to record the amortization expense on Dec 31, 2021
Q: Abbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from…
A: Variances shows the amount of difference between the costs estimated that is standard cost and the…
Q: Failure to prepare an adjusting entry at the end of the period to record an accured expense would…
A: A successful adjusting entry at the end of the period to record an accrued expense would: Increase…
Q: prepare the journal entry to record the payroll tax expense and fringe benefit expense for Webber…
A: Payroll Expenses For the Federal Taxes the Payroll deduction which are incurred for FICA social…
Q: On June 1, one company collected total subscriptions of $22,800 in which they promise to deliver of…
A: From June 1 to December 31 = 7 months Subscription revenue has been earned for 7 months and remains…
Q: The following data for the Golden Garden Company (GGC) pertains to the production of 2,500 garden…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2021, Essence Communications issued $700,000 of its 10-year, 10% bonds for $619,711.…
A: Amount are rounded of therefore value are approximate.
Q: imberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…
A: The lump sum paid to acquire various assets can be allocated to particular asset on the basis of…
Q: ntegrity Company leased equipment to a lessee on July 1, 2021. The lease is for 8 years. The first…
A: A corporation tracks the financial effects of its leasing activities through a method called lease…
Q: Jan1,2018 business purchased $3200 of inventory from MCA inc. Paid in cash
A: The journal keeps the record of business transactions on daily basis. The assets and expenses are…
Q: Gurriel Corporation manufactures and sells laptop computers and uses standard costing. For the month…
A: Net income is the amount of income earned by an entity after deducting the expense from the revenue.…
Q: Two weeks ago, Universal Holdings Inc. and Marston Manufacturing Company agreed to a merger in which…
A: Earnings per share Businesses all across the world are there to make money and increase shareholder…
Q: Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments:…
A: >Predetermined overhead rate is the overhead allocation rate, used to 'apply' or 'allocate' the…
Q: Privett Company Accounts payable Accounts receivable Accrued liabilities Cash $34,824 71,366 6,577…
A: Quick assets can be converted into cash quickly. It is different from current assets that include…
Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…
A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…
Q: K Luigi's Restaurant offers a "buy one dinner get the other dinner for half price sale. The "half…
A: Markdown is the amount of discount is given from original price. Mark down ℅ is (Original selling…
Q: Springer Energy Inc. produces food products for people active in sports. The following budgeted…
A: For absorption costing, all manufacturing costs including fixed and variable are included in product…
Q: Harvey Company provides its employees with vacation benefits and a defined benefit pension plan.…
A: Vacation Pay: Vacation pay is a perk that businesses normally provide to full-time employees as a…
Q: The following information relates to production activities of Mercer Manufacturing for the year.…
A: When the standard costs are compared with the actual costs there occurs either a favorable or…
Q: 3 FYE Dec Cash & Cash Equivalents 5 Loans Held For Sale - Other 6 Loans Held for Sale Allowance for…
A: According to the given question, we are going to determine the total current asset for capital from…
Q: You are working as a project manager of a construction company. Due to the economic impact, your…
A: The ratios used to express the arithmetical relationship of accounting figures are known accounting…
Q: Hensel Manufacturing separates its manufacturing overhead costs into 2 broad categories: (1)…
A: Here discuss about the details of the allocation of overhead cost into activity cost pool on the…
Q: Jan7,2018 business purchased inventory $3550 from Caroline enterprise the money will be paid in…
A: All the transactions (known as events) are to recorded in the books of accounts. The entries are…
Q: Cullumber Company acquired 28% of the outstanding common stock of Grinwold Inc. on January 1, 2020,…
A: The cost method adjust the investment on the basis of fair value of investment. The equity method…
Q: Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority…
A: Since the manager of the club is able to increase sales by $72,000 and net operating income…
Q: During Year 1, China Enterprises experienced the following events. (1) Earned $13,400 of revenue on…
A: We will use the concept of accounting equation here. The accounting equation states that a company’s…
Q: On July 1, 2022, Mr. X incorporated a painting business near Green University of Bangladesh. Mr. X…
A: The double-entry accounting system becomes the base for the preparations of accounting equation. As…
Q: eleTube Inc. manufacturers TVs. Unfortunately, some of the company's data was misplaced by an IT…
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: what is the intrinsic value of the asset after accounting for the cost of illiquidity?
A: Given in the question: Purchase price of the asset = P1,200,000 The value of the asset has been…
Q: Which of the following is not a factory overhead allocation method? a.activity-based costing…
A: Introduction: Managerial accounting reports are used to plan, regulate, make decisions, and monitor…
Q: Entries for Notes Payable A business issued a 45-day, 6% note for $210,000 to a creditor on account.…
A: Notes payable are a promissory note and a negotiable instrument. In this one party agree to pay a…
Q: 1) Amount Change and % change from Year 2000 to Year 2001 316
A: Important Note : As per Bartleby guidelines, I have solved only Ist question. These were two…
Q: The following information applies to the questions displayed below.] Ramirez Company installs a…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: An inexperienced accountant for Bramble Corp. showed the following in the income statement: net…
A: The income statement is prepared to record the revenues and expenses of the current period. The net…
Q: invoice may 15 date goods are received june 05 terms 3/10,n/30,ROG last day of discount…
A: It has been given in the question that the terms to start the days of the discount is the ROG which…
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2,…
A: The journal entries are prepared to record the transactions on regular basis. The journal keeps the…
Q: Merger Tax Effects A takeover bid can be structured in different ways, making it either a taxable or…
A: Correct Statements with respect to acquisition are as follows: Pooling of interest method - Assets…
Q: Privett Company Accounts payable Accounts receivable Accrued liabilities Cash $36,632 72,986 6,134…
A: Quick assets can be converted into cash quickly. Inventory and prepaid expenses are current assets…
Q: Statement 1: Upon issue of share rights, the issuing corporation records the transaction by…
A: The term "preference shares" refers to shares of a company's stock that have dividends that are paid…
Q: Ace Hardware is adding a new product line that will require an investment of $1,454,000. Managers…
A: Calculation of Accounting rate of return(ARR):- Accounting rate of return(ARR) = 13.15%…
Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…
A: A bond is a borrowing security issued by a company to raise funds from the market by making an…
Q: Foreign Corporation operates independently in the United States but is owned by a Philippine…
A: Translation gain and loss shall be considered in Other comprehensive income (OCI), and it shall not…
Q: Prepare journal entries to record these events (including the amortization of the cost of the van)…
A: This question belongs the the 'Not-for-Profit Organizations. Not-for-Profit Organizations are…
Q: 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2.…
A: Mixed Cost refer to those costs which are variable as well as fixed in nature. Contribution is the…
Q: Which one of the lease conditions below is not met? Select one: A. The lease agreement transfers…
A: Leasing of Assets :— Agreement between the Lessor & Lessee on transfer of ownership of Assets…
Q: The fixed budget for 20,300 units of production shows sales of $609,000; variable costs of $60,900;…
A: Fixed cost refers to those cost which remains same at every level of output i.e. it doesn't vary…
Q: Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price…
A: Depreciation is the reduction in the value of asset due to its use, wear and tear. There are…
Q: How does the fair value model differ from the revaluation model?
A: The difference between fair value and revaluation method arises when there is gain in the value of…
Q: Explain the following: 1. Development of accounting rules. 2. How Generally Accepted Accounting…
A: Here discuss about the details of development in the Accounting rules which are incurred in the late…
Q: Kemiah has the following insurance information from her employer: Premium: $200/month Deductible:…
A: Insurance deductible is the amount that you are responsible for payment towards medical expense out…
Q: ABC Co. started work on an P8,000,000 fixed-pric construction contract in 20x1. Information on the…
A: Estimated profits show the difference between the contract price and the estimated cost that is to…
Step by step
Solved in 2 steps
- Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
- On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.
- Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual value is 15,000. Akron estimates that the asset has a service life of 5 years. Calculate the depreciation expense using the sum-of-the-years-digits method for Years 1 and 2 of the assets life.Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.