of depreciation was
Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note ha...
A: Cash received = Face value of the bonds - discount amount Where, Discount amount = Face value of th...
Q: The disclosure requirements for an operating segment do not include: a. Unusual items b. Income tax ...
A: Operating segment is the revenue earning segment of the company which has its own expenses and finan...
Q: Problem 9 Miracle Company provides you with the following information January 1 January 31 Inventori...
A: Cost of goods manufacturing: Cost of goods manufactured refers to the cost incurred to produce the g...
Q: Which of the following are characteristics of the gift-splitting technique? A)If the spouses divorc...
A: Gift tax is levied by the tax authorities on the transfer of property with less or no consideration....
Q: The following trial balance was taken from the books of Dumbo Trading at 31 December 2021. Dumbo Tra...
A: Comprehensive Income statement is a income statement which contains income and expenses that have no...
Q: Kate's Candy Corporation makes chewy chocolate candies at a plant in Winston-Salem, North Carolina. ...
A: Net present value is the present value of all the future cash inflows less the present value of cash...
Q: For a manufacturing entity, which of the following is treated as business expense? a. Raw materials...
A: Business expense are the costs incurred by the company for operating the business. Manufacturing ent...
Q: Problem 2 A candy company with a MARR of 15% per year must purchase a new candy bar wrapping mach Co...
A: Solution The given problem shall be solved using the equivalent annual cost approach since the life ...
Q: Accounting The Concord Hat Shop Limited counted the entire inventory in its store on August 31 and a...
A: Consignment is a way of selling goods in which goods are kept with a third party. The party with who...
Q: Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Bot...
A: Selling price variance: This is the variance between the budgeted selling price of goods and the act...
Q: [The following information applies to the questions displayed below.] In 2021, Laureen is currently ...
A: American Opportunity Credit = 0 Lifetime learning credits = 0
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,6C Improvements 1. Building 1 has no value ...
A: In this question, we have to calculate straight-line depreciation.
Q: Required: 1) Prepare a schedule of total standard manufacturing costs for the 24000 production of bl...
A: Standard costing is one of the important tool of management accounting, under which standard or budg...
Q: Mr. John started a T-shirts business to be known as “John T-shirts". He has provided you with the fo...
A: Non-Current Assets are those assets which are expected to be realized or collected in cash beyond 12...
Q: 40. An asset that cost P15,000 new has an estimated scrap value of P2,000 at the end of 10 years usi...
A: Rate of depreciation = 1 - ( residual value / cost )^(1/n ) where , n = useful life Residual value =...
Q: Bonita Leasing Company agrees to lease equipment to Windsor Corporation on January 1, 2020. The foll...
A: Journal entries is given below :-
Q: arasota Corp. reported net sales S 600,000, cost of goods sold S 336,000, operating expenses S 160,0...
A: Profitability ratio is one of the important type of ratios which is being used by the accountants fo...
Q: JOURNALIZE THE FOLLOWING TRANSACTIONS: 2017 June 1- Peter invested cash amounting to Php 100,000 to ...
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger mean...
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with...
A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: Tamarisk is unable to reconcile the bank balance at January 31. Tamarisk’s reconciliation is as foll...
A: We should reduce NSF check and bank charges to get adjusted cash balance.
Q: Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and ...
A: Solution:- Preparation of The journal the entries to record the absorption of Quaney’s capital defic...
Q: 1. Why must the auditor for a publicly traded company be independent from the company it audits?
A: Meaning of Independent Auditor: An freelance auditor could be a certified public businessperson (CPA...
Q: Prima Company is using job order cost accounting system for some time. Assume that on December 1, th...
A: Direct costs are charged to the process account and the indirect costs are charged to the overhead a...
Q: Last month when Holiday Creations, Incorporated, sold 41.000 units, total sales were $164,000, total...
A: Formula: Contribution margin ratio = ( Contribution margin / Total sales ) x 100
Q: 3.2 Partners Pedro and Gil divide profits and losses on the basis of their 1 30,000 Sept. 4. 6,750 J...
A: "Since you have asked multiple questions, we will solve first question for you. If you want any spec...
Q: ABC Company sells 75 units on June 3. The inventory data on that date are: Lot Date Acquired Units C...
A: Introduction: FIFO: FIFO stands for First in First out. Which means First received inventory to be s...
Q: Project L requires an initial outlay at t = 0 of $35,000, its expected cash inflows are $8,000 per y...
A: Answer:
Q: Other Operating Sales Revenue Cost of Goods Sold Gross Profit Net Income Expenses Firm $ 60,000 $125...
A: Gross profit = Sales Revenue - Cost of goods sold Net income = Gross profit - Other operating expens...
Q: Shown below is the Profit & Loss Statement of start-up company THE PEANUT BETTER CO. Let us assume t...
A: The question is related to Return on Investment. The return on investment is calculated with the hel...
Q: Novak Company at December 31 has cash $44,500, noncash assets $214,000, liabilities $120,000, and th...
A: Preparation of the schedule of cash payment is as follows:
Q: Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on futu...
A: Cost accounting is one of the branch of accounting. Under this, various type of costs are being calc...
Q: On September 1, a piece of office equipment was sold for P2M. The office equipment had an original c...
A: Gain on sale of office equipment is the excess amount received by way of sale over the carrying amou...
Q: Elegance Interior Design Ltd uses a job order cost accounting system and applies the overhead on the...
A: The question is based on the concept of cost accounting.
Q: the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
A: Solution:- Preparation of Journal entries in the books of Bonnie Donne Company during its first mont...
Q: The Articles of Incorporation for Trendy Sunglasses, Corp.states that the corporation's purpose is t...
A: Ultra vires act means doing an act which is beyond the power of the company.
Q: ..new D Bonita Leasing Company agrees to lease equipment to Windsor Corporation on January 1, 2020....
A: Calculation of Annual Rental = {(Fair value) - (residual value x PV of $1 10% for 7 years)} / PV of ...
Q: Sage Industries and Pronghorn Inc. enter into an agreement that requires Pronghorn Inc. to build thr...
A: The following are journal entries between Sage Industries and Pronghorn Industries, who agreed to wo...
Q: QUESTION TWO IFA Corporations had Net Incorme of $780,000 and the following information for January ...
A: In order to calculate the net number of shares that would have been issued due to exercise of stock ...
Q: Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in...
A: Process Costing: Process Costing is one of the technique of costing where a product is manufactured ...
Q: When a destroyed business asset is replaced, which of the following is true?
A: When the asset of business is destroyed then the destroyed assets's car...
Q: a partnership and agreed to maintar Bi, Ni, average investment of P 100,000, P 50,000 and P 50 respe...
A:
Q: You are a small employer, and are considering adding a retirement plan for you and your employees, w...
A: I would recommend SEP-IRA plans (Simplified Employee Pension) and SIMPLE IRA plans.
Q: 3.12 L, V, and M put up an accounting firm on January 1, 200A. Their capital balances on December 31...
A:
Q: At the beginning of current year, Samal Company Issued P5,000,000 8% serial bonds, to be repaid in t...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: how to reduce outstanding receivable amount? give 6 ways to on how it can be reduced.
A: To reduce the outstanding receivable amount is state the payment terms clearly on invoices Businesse...
Q: 1. A corporate form of business is subject to greater governmental control.
A: Corporate: It implies to an associate that is created and formed by law and provided by all the righ...
Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $151,200, and ...
A: Selling price = $ 90 per unit Variable cost = $ 36 per unit Fixed costs = $ 151200 Contribution = Sa...
Q: Which of the following are assets? (Select all that apply.) Land Supplies Expense Wages Payable
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net...
Q: Show Auemnt HBlury Current Atlempt in Progress Selected transactions for Bonnie Donne Company during...
A: Journal entry: Journal entry records the financial transactions or events of business organizations ...
Q: calculate gross profit using FIFO and weighted average
A: FIFO and weighted average are methods of valuation of inventory. FIFO means First - in -First out, w...
Step by step
Solved in 2 steps with 1 images
- 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.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.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.
- Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.
- Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a straight-line basis over a useful life of 10 years and used a residual value of $12,000. Chapmans depreciation expense for 2019 was $11,000. What was the original cost of the building? a. $98,000 b. $110,000 c. $122,000 d. $134,000During 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.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. 10,000
- Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.Hathaway 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?