Consider the following transactions: • Paid $4,000 cash for supplies • Paid $6,000 cash in employee wages • Provided $9,000 of services on account Provided $17,000 of services for cash • Paid $3,000 cash for utilities expenses incurred last year • Used up $2,000 of the supplies purchased earlier • Used up $6,000 of long-term assets (i.e., depreciation expense) How much is net income under cash basis accounting? Do not include dollar signs or commas; just numbers. Answer:

Consider the following transactions: • Paid $4,000 cash for supplies • Paid $6,000 cash in employee wages • Provided $9,000 of services on account Provided $17,000 of services for cash • Paid $3,000 cash for utilities expenses incurred last year • Used up $2,000 of the supplies purchased earlier • Used up $6,000 of long-term assets (i.e., depreciation expense) How much is net income under cash basis accounting? Do not include dollar signs or commas; just numbers. Answer:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
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Jada Company had the following transactions during the year: Purchased a machine for $430,000 using a long-term note to finance it. Paid $520 for ordinary repair. Purchased a patent for $42,000 cash. Paid $200,000 cash for addition to an existing building. Paid $51,000 for monthly salaries. Paid $280 for routine maintenance on equipment. Paid $10,000 for major repairs. Depreciation expense recorded for the year is $30,000. A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions? $fill in the blank 1 B. What amount did Jada report on the income statement for expenses for the year? $fill in the blank 2 Feedback
Jada Company had the following transactions during the year:• Purchased a machine for $500,000 using a long-term note to finance it• Paid $500 for ordinary repair• Purchased a patent for $45,000 cash• Paid $200,000 cash for addition to an existing building• Paid $60,000 for monthly salaries• Paid $250 for routine maintenance on equipment• Paid $10,000 for major repairs• Depreciation expense recorded for the year is $25,000If all transactions were recorded properly, what is the amount of increase to the Property, Plant, andEquipment section of Jada’s balance sheet resulting from this year’s transactions? What amount did Jadareport on the income statement for expenses for the year?