End of Year Light Bar Sliding Spots Reflected Beam -$6,000 --$14,000 -$20,000 1 $2,000 $3,500 $0 $2,000 $3,500 $2,300 3 $2,000 $3,500 $4,600 4 $2,000 $3,500 $6,900 5 $2,000 $3,500 $9,200 $2,000 $3,500 $11,500
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Orpheum Productions in Nevada is considering three mutually exclusive alternatives for lighting enhancements to one of its recording studios. Each enhancement will increase revenues by attracting directors who prefer this lighting style. The cash flow details, in thousands of dollars, for these enhancements are shown in the chart below. MARR is 10%/yr. Based on an
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- New Office Equipment List price: $60,000; terms: 2/10, n/30; paid within the discount period. Transportation-in: $1,500. Installation: $2,500. Cost to repair damage during unloading: $650. Routine maintenance cost after eight months: $350. determine the amount of cost to be capitalized in the asset account office equipment: ?a) Depreciation on the company’s wind turbine equipment for the year is $5,000. b) The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before adjusting for the costs of any expired coverage. c) Analysis of prepaid insurance shows that $600 of unexpired insurance coverage remains at year-end. d) The company received $3,000 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. e) As of December 31, $1,200 in wages expense for the organic produce workers has been incurred but not yet paid. f) As of December 31, the company has earned, but not yet recorded, $400 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, determine the financial statement impact of each required year-end adjusting entry. Fill in the table below by indicating the amount and…Depreciation on the company’s wind turbine equipment for the year is $5,000. The Prepaid Insurance account for the solar panels had a $2,000 debit balance at December 31 before adjusting for the costs of any expired coverage. Analysis of prepaid insurance shows that $600 of unexpired insurance coverage remains at year-end. The company received $3,000 cash in advance for sustainability consulting work. As of December 31, one-third of the sustainability consulting work had been performed. As of December 31, $1,200 in wages expense for the organic produce workers has been incurred but not yet paid. As of December 31, the company has earned, but not yet recorded, $400 of interest revenue from investments in socially responsible bonds. The interest revenue is expected to be received on January 12. For each of the above separate cases, prepare the required December 31 year-end adjusting entries
- A grocery store bought a generator set for P100,000. Other expenses including installation amounted to P15,000. The generator set is to have a life of 20 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the (a) double declining balance method (b) SYD method.April 01 - Invested capital. P1,7000,00002 - Paid P12,000 as two months advance rent on a completely furnished building.05 - Paid cash for delivery trucks P950,00006 - Rendered delivery services P60,250.07 - Billed credit clients, P50,15008 - Acquired computers, printers and other office requirement totalling to P122,000 on account.09 - Paid P3,200 for supplies recieved.12 - Performed delivery services for costumers who promised to pay P27,000 at a later date.15 - Invested additional cash P50,20015 - Paid P8,400 salaries to employees for 1st half of the month.18 - Paid promotionals tarpaulins for its advertising for the month, P3,51020. Collected cash of ₱4,500 from customers on account (see April 12 entry).21. Received a bill and paid for ₱1,500 for advertising in the local newspaper in April.25. Paid cash for gas and oil consumed in April, ₱650.27. Performed services cash, ₱10,500.28. Acquired office chairs for ₱5,200 on account29. Paid expenses for petty items, ₱1,000.30. Withdraw…unset Unlimited bought a machine for $71,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 159,000. Units actually produced were 42,400 in year 1 and 47,700 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?
- Year 1 Jan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $4,800 to install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,400. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $5,400 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. Feb. 17 Paid $820 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. *Debt EquipmentHh2. Account Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given below: Insurance $ 2,780 Licences $ 200 Taxes (vehicle) $ 120 Garage rent for parking (per truck) $ 1,200 Depreciation ($25,000 ÷ 5 years) $ 5,000 Gasoline, oil, tires, and repairs $ 0.19 /km Required: 1. Assume that Hart Company owns one truck that has been driven 31,000 kilometres during the first year. Compute the averageanswer in 20 minutes On 31 October 2012 the carrying amount of an entity’s delivery truck was R200 000 when its recoverable amount was estimated to be R190 000. On 31 October 2013 conditions that led to the previous impairment changed it was estimated that the new recoverable amount of the delivery truck was now R205 000. How much impairment can be reversed on 31 October 2013? Select one: a. R205 000 b. R15 000 c. R5 000 d. R10 000
- *Don't use Excel. Please use formula only A company bought a machine for P19,500.00. It has an estimated useful life of 20 years, after which can be sold for P2,500.00. Find the book value during the third year if sum-of- the-years digit method is used.Part 1. A company pays $1,000 for equipment expected to last four years and have a $200 salvage value. Prepare journal entries to record the following costs related to the equipment. a. During the second year of the equipment’s life, $400 cash is paid for a new component expected to materially increase the equipment’s productivity. b. During the third year, $250 cash is paid for normal repairs necessary to keep the equipment in good working order. c. During the fourth year, $500 is paid for repairs expected to increase the useful life of the equipment from four to five years. Part 2. A company owns a machine that cost $500 and has accumulated depreciation of $400. Prepare the entry to record the disposal of the machine on January 2 in each separate situation. a. The company disposed of the machine, receiving nothing in return. b. The company sold the machine for $80 cash. c. The company sold the machine for $100 cash. d. The company sold the machine for $110 cash.Problem 33-11 Yellow Company acquired a delivery truck, making payment of $2,680,000, the payment being analyzed as follows: Price of truck 2,500,000 Charge of extra equipment 50,000 Value added tax 300,000 Insurance for one year 120,000 Motor vehicle registration 10,000 ————— Total 2,980,000 Less: trade in value allowed on old truck 300,000 —————— Cash paid 2,680,000 The old truck cost $1,500,000 and has a carrying amount of $200,000, and fair value of $50,000. The value added tax is refundable or recoverable. Required: Prepare journal entry to record the exchange transaction.