naining Time: 24 minutes, 18 seconds.stion Completion Status:A Click Submit to complete this assessment.stion 1Sama Inc. has prepared the following comparative statement of financial position for 2019 and 2020:20202019Plant assetsAccumulated depreciation1,160,000(400,000)153,00018,000102,000559,000495,0001,290,000(375,000)177,00037,000180,000PatentPrepaid expensesInventoryReceivables7,00040,000CashShare capital- preferenceShare premium – preferenceShare capital – ordinaryRetained earningsMortgage payableAccounts payableAccrued liabilities91,000553,00060,000525,00066,000450,000168,00042,000120,000638,000140,000600,000The income statement for 2020 is as follows:SalesCost of salesGross loss3,890,0003,908,000(18,000)(690,000)(708,000)Operating expensesNet lossAdditional information:Depreciation expense and amortization expense are included in the operating expense.Required:1. How much is the cash received from customers? (SHOW YOUR CALCULATIONS)2. How much is the cash paid to suppliers? (SHOW YOUR CALCULATIONS)3. How much is the cash paid for operating expenses? (SHOW YOUR CALCULATIONS)For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).ParagraphArial10ptA V1T99X田田用EX<>rch

The cash flow statement is prepared to record the cash flow from various activities during the…

epared Towing comparative statement of financial position for 2019 and 2020: 2020 1,160,000 (400,000) 153,000 18,000 102,000 559,000 495,000 2019 Plant assets 1,290,000 (375,000) 177,000 37,000 180,000 117,000 40,000 Accumulated depreciation Patent Prepaid expenses Inventory Receivables Cash Share capital- preference Share premium – preference Share capital- ordinary Retained earnings Mortgage payable Accounts payable Accrued liabilities 91,000 66,000 450,000 168,000 42,000 553,000 60,000 525,000 120,000 638,000 140,000 600,000 The income statement for 2020 is as follows: Sales Cost of sales 3,890,000 3,908,000 (18,000) (690,000) (708,000) Gross loss Operating expenses Net loss Additional information:"Depreciation expense and amortization expense are included in the operating expense. Required: 1. How much is the cash received from customers? (SHOW YOUR CALCULATIONS) 2. How much is the cash paid to suppliers? (SHOW YOUR CALCULATIONS) 3. How much is the cash paid for operating expenses? (SHOW YOUR CALCULATIONS)

epared Towing comparative statement of financial position for 2019 and 2020: 2020 1,160,000 (400,000) 153,000 18,000 102,000 559,000 495,000 2019 Plant assets 1,290,000 (375,000) 177,000 37,000 180,000 117,000 40,000 Accumulated depreciation Patent Prepaid expenses Inventory Receivables Cash Share capital- preference Share premium – preference Share capital- ordinary Retained earnings Mortgage payable Accounts payable Accrued liabilities 91,000 66,000 450,000 168,000 42,000 553,000 60,000 525,000 120,000 638,000 140,000 600,000 The income statement for 2020 is as follows: Sales Cost of sales 3,890,000 3,908,000 (18,000) (690,000) (708,000) Gross loss Operating expenses Net loss Additional information:"Depreciation expense and amortization expense are included in the operating expense. Required: 1. How much is the cash received from customers? (SHOW YOUR CALCULATIONS) 2. How much is the cash paid to suppliers? (SHOW YOUR CALCULATIONS) 3. How much is the cash paid for operating expenses? (SHOW YOUR CALCULATIONS)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 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 for each situation to record the depreciation for 2020. Ignore income taxes.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
Calculate the following: The first year of depreciation on a residential rental building costing $250,000 purchased June 2,2019. $_____________ The second year (2020) of depreciation on a computer costing $5,000 purchased in May 2019, using the half-year convention and accelerated depreciation considering any bonus depreciation taken. $______________ The first year of depreciation on a computer costing $2,800 purchased in May 2019, using the half-year convention and straight-line depreciation with no bonus depreciation. $______________ The third year of depreciation on business furniture costing $10,000 purchased in March 2017, using the half-year convention and accelerated depreciation but no bonus depreciation. $______________
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?
Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
Depreciation Methods Nickle Company purchased three identical assets for 17,000 on January 2, 2019. Each asset has an expected residual value of 1,000. The depreciation expense for 2019 and 2020 is shown below for three assets: Required: 1. Next Level Which depreciation method is the company using for each asset? 2. Compute the depreciation expense for 2021 and 2022 for each asset.
The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases…
Below is the information as at the end of accounting year of December 2020:Details RMDebtors 23,000Bank 55,000Fixed asset at cost 698,000Accumulated depreciation 98,000Creditors 48,000Operating expenses for December 60,000Sales for December 400,000Ending inventory 20,000Retained earnings 120,000 The following additional information was also provided to assist your work.i) Depreciation is provided at the rate of 5% on cost of non-current assets per month.ii) Closing inventory is expected to increase by RM2000 in January from December levels. This is expected to increase by the same figure in February from the projected figure in January. It is expected that in March closing inventory is desired to be RM26,000iii) The company makes a profit of 25% on its sales.iv) Operating expenses is expected to increase by 10% from that of December in January and this is projected to increase at the same growth rate until March.v) Sales is projected to grow by 15% per month from December until…
Below is the information as at the end of accounting year of December 2020:Details RMDebtors 23,000Bank 55,000Fixed asset at cost 698,000Accumulated depreciation 98,000Creditors 48,000Operating expenses for December 60,000Sales for December 400,000Ending inventory 20,000Retained earnings 120,000 The following additional information was also provided to assist your work.i) Depreciation is provided at the rate of 5% on cost of non-current assets per month.ii) Closing inventory is expected to increase by RM2000 in January from December levels. This is expected to increase by the same figure in February from the projected figure in January. It is expected that in March closing inventory is desired to be RM26,000iii) The company makes a profit of 25% on its sales.iv) Operating expenses is expected to increase by 10% from that of December in January and this is projected to increase at the same growth rate until March.v) Sales is projected to grow by 15% per month from December until…
The following trial balance was extracted from the ledger of Juliana at 31December 2020. Juliana Trial Balance as at 31 December 2020 RM RM Land at cost 26,000 Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000 Office Equipment 33,000 Accumulated Depreciation at 1 January 2020 Office Equipment 8,000 Receivables 198,000 Payables 52,000 Sales 763,000 Purchases 516,000 Returns Inwards 47,000 Discount allowed 4,000 Capital at 1st January 2020 230,000 Drawings 14,000 Provision for doubtful debts at 1 Jauary 2020 23,000 Salaries Expense 44,000 Administration costs 38,000 Bank 75,000 Bad debts written off 77,000 Inventory at 1 January 2020 84,000 1,164,000 1,164,000 Additional information: Closing inventory is RM74,000. Depreciation on plant is charged at 10% per annum on cost. Depreciation on office equipment is charged at 20% per annum using the reducing…
Lowell Company’s December 31, 2020, trial balance includes the following accounts: Inventory $120,000, Buildings $207,000, Accumulated Depreciation—Equipment $19,000, Equipment $190,000, Land (held for investment) $46,000, Accumulated Depreciation—Buildings $45,000, Land $71,000, and Timberland $70,000. Prepare the property, plant, and equipment section of the balance sheet.