ber 31, 2023, given the following account balances? Accou cumulated Depreciation: $10 Patent: $50 Inventory: $15 Acc
Q: Calculate the cost of production per unit of output according to marginal and absorbent costing.…
A: Using Marginal costing and absorbent costing calculate the cost of production per unit in 2…
Q: For Coronado Company, units to be produced are 5,900 in quarter 1 and 8,260 in quarter 2. It takes…
A: Budgeting is a very useful method of estimating revenue and expenses for an organization.It is…
Q: The trial balance of Rollins Incorporated included the following accounts as of December 31, 2024:…
A: The statement of income is produced at yearend to report the profit or loss for the period. The…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: The balance sheet forms a part of the financial statement prepared by the company at the end of the…
Q: As ITA 3(b) indicates Taxable Capital Gains exceed Allowable Capital Losses, which of the following…
A: Solution:-ITA 3(b) - Capital gains tax occurs if the previous year's capital gains tax exceeds the…
Q: Julia Dumars is a licensed CPA. During the first month of operations of her business, Sheffield…
A: A ledger account is a vertical table that is used to transfer the transactions recorded in a…
Q: Required: 1. Prepare the Cutting department's production cost report for October using the weighted…
A: Definition of process costing: Process costing is a term used in cost accounting to describe one…
Q: Lina purchased a new car for use in her business during 2023. The auto was the only business asset…
A: Section 179 expense allows a taxpayer to elect to deduct the cost of certain types of property on…
Q: Required information [The following information applies to the questions displayed below.] The first…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: Manufacturing cost data for Martinez Company are presented as follows. Indicate the missing amount…
A: The whole table can be completed using 3 simple formulas, They are as follows :-(1) Total…
Q: Seventh Investments, Inc., began by issuing common stock for cash of $190,000. The company…
A: The objective of the question is to record the first two transactions of Seventh Investments, Inc.…
Q: At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant…
A: The question is related to Ratio Analysis Day's Sales uncollected is calculated with the help of…
Q: The following trial balance was extracted as at 31 December 2020 Ordinary share capital…
A: The objective of the question is to prepare an income statement for the year ended 31 December 2020…
Q: Summarize the internal control procedure of maintaining adequate records by selecting the correct…
A: Internal control procedures are crucial for ensuring the reliability and integrity of financial…
Q: Exercise 2-1 (Algo) Transaction analysis [LO2-1] The following transactions occurred during March…
A: Accounting equation is the one which is prepared by the entity to show the effect of each…
Q: Required information. [The following information applies to the questions displayed below.] Hickory…
A: Activity-Based Costing (ABC) serves as a valuable tool for assessing performance. Its primary…
Q: 5) Which of the following will cause a movement from one point on an AD curve to another point on…
A: The first question is asking about the factors that cause a movement along the Aggregate Demand (AD)…
Q: llowing equity investment transactions were completed by Vintage Company during a recent year: Apr.…
A: Journalizing -The process of entering a commercial transaction into the accounting records is known…
Q: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item,…
A: A type of financial analysis known as horizontal analysis is used to examine the performance of a…
Q: Milden Company is a merchandiser planning to sell 12,000 units next quarter at a selling price of…
A: An income statement refers to a statement that determines the income earned during the period by…
Q: Required information [The following information applies to the questions displayed below] NewTech…
A: Depreciation Expenses are the expenses incurred on the wear and tear of the fixed assets. This is…
Q: Required: Superior Corporation applies manufacturing overhead to production at 65% of direct labor…
A: The cost of goods sold includes the cost of goods that are sold during the period. The cost of goods…
Q: Superior Micro Products uses the weighted-average method of process costing. During January, the…
A: Process costing is an accounting method typically used by companies that mass produce very similar…
Q: Wallace Corporation summarizes the following information from its weekly payroll records during…
A: The objective of the question is to calculate the amount that should be debited to salaries expense…
Q: On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: Rembrandt Paint Company had the following income statement items for the year ended December 31,…
A: A multi-step income statement is a format of income statement that provides better view of the…
Q: A manager using an adversarial intervention exerts high control over both the process and the…
A: An adversarial intervention involves a manager taking a confrontational or adversarial stance toward…
Q: x Your answer is incorrect. How much total revenue should be recognized in 2023? Revenue recognized…
A: Interest = Face value of bonds - Fair value of goods= $7,920 - $7,200= $720
Q: Cristina is trading ocean - front real property used for business purposes for new real property…
A: Taxation -The term "taxation" describes the levies and financial commitments that a government…
Q: Assets Current Assets Cash Accounts receivable Inventories Other current assets Long-Term Assets…
A: Current Ratio -Current ratios are often used to assess a company's short-term solvency. The…
Q: Daniel Blossom is the sole shareholder of Blossom Inc., which is currently under bankruptcy court…
A: Debt restructuring is where the lender or creditor allows the borrower to make certain concessions…
Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: A company can invest in another company. The company generally uses the equity method to account for…
Q: Here are data regarding the current month: Purchases of raw materials Indirect materials used Raw…
A: Total manufacturing cost is the total cost incurred in the manufacturing of product during the…
Q: 1) Fiscal policy refers to a) making changes in private expenditures as a result of changes in…
A: The objective of the first question is to identify the correct definition of fiscal policy. Fiscal…
Q: Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance…
A: Accounting equation is the basic accounting method using which the transactions are reported on the…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: The variable costs are the costs that are directly affected if there is a change in the level of…
Q: FrostFrost Enterprises buys a warehouse for $ 530 comma 000$530,000 to use for its East Coast…
A: Historical Cost: Historical cost principle is also known as original cost. As per historical cost…
Q: Why are personnel changes, such as the resignation or retirement of employees, not reflected in the…
A: The accounting cycle primarily focuses on recording, summarizing, and reporting financial…
Q: Use the following information for Taco Swell, Incorporated, (assume the tax rate is 23 percent):…
A: The "cash flow from creditors" means the financial exchanges that take place between a business and…
Q: Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6 1.) Assuming Bourne…
A: Ordinary income :Ordinary income is the lesser of the following -the current net §1231 gain for year…
Q: If an error or fraud occurs in the normal course of business and the company has good internal…
A: Fraud -The willful and illegal falsification of financial statements is considered fraud in…
Q: Required: Determine whether each of the following terms is more likely to be associated with…
A: Exploratory Data visualization It's about diving into your data , looking for patterns , trends and…
Q: Pancake Company produces two main products and a by-product out of a joint process. The ratio of…
A: When joint cost are to be allocated using the physical units method, the net joint cost shall be…
Q: Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined…
A: Manufacturing cost encompasses all the expenditures that occur during the process of producing goods…
Q: Rodriguez Corporation issues 14,000 shares of its common stock for $237,500 cash on February 20.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Chavis Company signed a one-year lease on April 1, 2022, and paid the $22,800 total year's rent in…
A: Adjusting Entries are the entries that make the accrual principle work for the organization. These…
Q: Dan Watson started a small merchandising business in Year 1. The business experienced the following…
A: The objective of the question is to record the given transactions in a horizontal financial…
Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The balance sheet for Pina Colada Consulting reports the following information on July 1, 2022.…
A: BOND PAYABLE Bond is a Financial Security which is Generally Issued by the Corporations, Government…
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Step by step
Solved in 3 steps
- The following information relates to Basic Lid. for the year ended 31" December 2021: Net working capital RO. 1.200.000 Fixed assets to proprietor's fund ratio 0.75 Working capital turnover ratio 5 timeg Return on Equity 15% Current liabilities RO. 400.000 Long term Debts 0 You are required to calculate: Proprietor's funds Fixed Assets Current assets Net profit ratio Current ratioJamison Corp.'s balance sheet accounts as of December 31, 2021 and 2020 and information relating to 2021 activities are presented below. December 31, 2021 2020 AssetsCash $ 440,000 $ 200,000Short-term investments 600,000 —Accounts receivable (net) 1,020,000 1,020,000Inventory 1,380,000 1,200,000Long-term investments 400,000 600,000Plant assets 3,400,000 2,000,000Accumulated depreciation (900,000)…Presented below is selected information pertaining to the Cassie Inc:Cash balance, January 1, 2020- P13,000Accounts receivable, January 1, 2020- P19,000Collections from customers in 2020- P210,000 Capital account balance, January 1, 2020- P38,000Total assets, January 1, 2020- P75,000Cash investment added, July 1, 2020-P5,000Total asset, December 31, 2020- P101,000 Cash balance, December 31, 2020- P20,000Accounts receivable, December 31, 2020- P36,000Merchandise taken for personal use during 2020- P11,000Total liabilities, December 31, 2020- P41,000How much is the net income for 2020?
- A comparative balance sheet for Gena Company appears below:GENA COMPANYComparative Balance SheetDec. 31, 2021 Dec. 31, 2020AssetsCash $ 34,000 $11,000Accounts receivable 21,000 13,000Inventory 35,000 17,000Prepaid expenses 6,000 9,000Long-term investments -0- 17,000Equipment 60,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $136,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 17,000 $ 7,000Bonds payable 36,000 45,000Common stock 53,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $136,000 $85,000Additional information:1. Net income for the year ending December 31, 2021 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. Depreciation expense for the year was $5,000.InstructionsPrepare a full statement of cash flows for the year ended December 31, 2021, using the indirectmethod.The following information is available for J Ltd. for the year ended 2021: Net working capital Long-term debt Total assets Fixed assets Calculate the amount of the total liabilities. $6,880 $4,970 $2,480 $460 $4,970 $8,390 $5,910 $6,990Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…
- Selected financial statement information for 2018, 2019, and 2023 for End Run Corporation is presented below (amounts in millions of dollars): Accounts receivable Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Sales Cost of goods sold Selling and administrative expenses Income from continuing operations Cash flow from operations Depreciation expense 2020 A. 2020 SAI B. 2020 LVGI C. 2020 TATA D. 2020 Y E. 2020 earnings manipulation probability 10508 30945 11284 68787 29417 8776 101573 92207 3931 946 4837 518 2019 3905 7438 10744 31289 6595 7223 47860 32090 3315 1063 1127 550 2018 2985 5743 10493 26213 6048 7223 33906 27772 2582 739 1863 550 For 2019 and 2020, compute the following amounts relative to Beneish's eight-factor earnings manipulation model:Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Assets Current assets Cash Accounts receivable Inventory Total Total assets 2020 Net plant and equipment $240,750 $310,600 a. Current ratio b. Quick ratio c. Cash ratio d. NWC ratio e. Debt-equity ratio e. Equity multiplier f. Total debt ratio f. Long-term debt ratio $8,850 $14,200 15,750 23,000 34,650 52,200 $ 59,250 $89,400 JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets 2021 300,000 400,000 2020 times times times % times times times times Liabilities and Owners' Equity Current liabilities 2021 Accounts payable Notes payable Based on the balance sheets given for Just Dew It: a. Calculate the current ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the quick ratio for each year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate the cash ratio for…Some interest cost of Metlock Inc. is capitalized for the year ended May 31, 2026. Compute the amount of each of the items that must be disclosed in Metlock's financial statements. Total actual interest cost $ Total interest capitalized $ Total interest expensed $
- Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:2019 2020£ million £ millionEquity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required:(a) Calculate the following financial ratios for the two years: 2019 and 2020:(i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.Calculate the following for Co. XYZ: c. Average collection period (365 days) d. Times interest earned Assets: Cash and marketable securities $400,000Accounts receivable 1,415,000Inventories 1,847,500Prepaid expenses 24,000Total current assets $3,686,500Fixed assets 2,800,000Less: accumulated depreciation 1,087,500Net fixed assets $1,712,500Total assets $5,399,000Liabilities: Accounts payable $600,000Notes payable 875,000Accrued taxes Total current liabilities $1,567,000Long-term debt 900,000Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000Less: Cost of goods sold 4,375,000Selling and administrative expense 1,000,500Depreciation expense 135,000Interest expense Earnings before taxes $765,000Income taxes Net income Common stock dividends $230,000Change in retained earnings