For the year ended 30 June 2022, the following information is available for X-ray Ltd:20222021Dividend receivable5,2004,400Land240,000100,000Buildings1,200,000500,000Accumulated depreciation-buildings(200,000)(150,000)Machinery45,00038,000Accumulated depreciation-machinery(13,100)(7,200)28,0000Asset revaluation surplus - landAdditional information:a) Dividend revenue for the year was $3,500.b) Depreciation expense on machinery for the year $7,500.c)Land was revalued at the end of the year. This resulted in the recognition of an assetrevaluation surplus. Land was also purchased.d) Buildings were purchased during the year. This was paid for by issuing $200,000worth of shares and the balance paid in cash.e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sale of$4,000 was recorded. New machinery was purchased for cash.f) The tax rate is 30%Required:a) Calculate net cash used in investing activities (assume the company showsdividends received in investing activities).b) Present the cash flows in the correct format.

Name: For the year ended 30 June 2022, the following information is availab
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Description: For the year ended 30 June 2022, the following information is available for X-ray Ltd:20222021Dividend receivable5,2004,400Land240,000100,000Buildings1,200,000500,000Accumulated depreciation-buildings(200,000)(150,000)Machinery45,00038,000Accumulate

Cash Flows from Investing Activities: It is part of the cash flow statement. Cash inflows or…

Business

Accounting

For the year ended 30 June 2022, the following information is available for X-ray Ltd: 2022 2021 Dividend receivable 5,200 4,400 Land 240,000 100,000 Buildings 1,200,000 500,000 Accumulated depreciation-buildings (200,000) (150,000) Machinery 45,000 38,000 Accumulated depreciation-machinery (13,100) (7,200) Asset revaluation surplus - land 28,000 0 Additional information: a) Dividend revenue for the year was $3,500. b) Depreciation expense on machinery for the year $7,500. c) Land was revalued at the end of the year. This resulted in the recognition of an revaluation surplus. Land was also purchased. d) Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash. e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sal $4,000 was recorded. New machinery was purchased for cash. f) The tax rate is 30% Required: a) Calculate net cash used in investing activities (assume the company shows dividends received in investing activities). b) Present the cash flows in the correct format.

For the year ended 30 June 2022, the following information is available for X-ray Ltd: 2022 2021 Dividend receivable 5,200 4,400 Land 240,000 100,000 Buildings 1,200,000 500,000 Accumulated depreciation-buildings (200,000) (150,000) Machinery 45,000 38,000 Accumulated depreciation-machinery (13,100) (7,200) Asset revaluation surplus - land 28,000 0 Additional information: a) Dividend revenue for the year was $3,500. b) Depreciation expense on machinery for the year $7,500. c) Land was revalued at the end of the year. This resulted in the recognition of an revaluation surplus. Land was also purchased. d) Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash. e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sal $4,000 was recorded. New machinery was purchased for cash. f) The tax rate is 30% Required: a) Calculate net cash used in investing activities (assume the company shows dividends received in investing activities). b) Present the cash flows in the correct format.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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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
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. $134,000
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
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.
Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?