On May 1, 2014 Barton Corporation purchased for cash of S37.500 a patent with a useful ife of 10 years. Give the entries to record : a. The purchase of the patent. b The amortizatiOn on December 31 2014 (calculated to the pearest whole month)
Q: The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares…
A: Treasury stock are those outstanding stocks which are repurchased by the entity from their…
Q: Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal…
A: Total materials variance $4,740 Unfavourable Materials price variance $3,510 Unfavourable…
Q: Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 1…
A: Answer: MACRS( Modified Accelerated Cost Recovery System) is a depreciation system used for tax…
Q: REQUIRED: Prepare in proper format a Cash Flow Statement for Alexis Inc., using the indirect method.
A: In the given question, financial statement of Alexis Inc is mentioned in detail. With the available…
Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.…
A: Under activity based costing, the overhead rate is calculated as estimated overhead cost for…
Q: As an accountant for Lee Company, your supervisor gave you the following calculations of the gross…
A: Inventory is a form of asset that is intended to be sold during normal business operations.…
Q: Consider the following information pertaining to OldWest's inventory: Net Realizable Value $157…
A: Formula: Inventory value = Quantity x lower of cost or NRV
Q: McFriend Inc. records its liabilities for employees' vacations at the end of each month. For the…
A: According to the logic of a journal entry, every business transaction should be documented in at…
Q: d industry target?
A: From the cash budget, it is explained as,
Q: Jim Bond, a plumber, has been working for Fleming’s Plumbing Supplies for several years. Based on…
A: Statement of Liquidation of partnership is a statement that shows the status of the liquidation…
Q: Which of the following would be considered a cash outflow for investing activities? a. cash paid to…
A: The correct option is: (d) Cash paid to purchase equipment
Q: A schedule of budgeted cash collections for trade receivables (sales on account) for each of the…
A: Below mentioned budget needs to be prepare budgeted cash collections for trade receivables…
Q: Pretzel Company acquired the assets (except for cash) and assumed the liabilities of Salt Company on…
A: Journal entry refers to the first step of accounting which involves the recording of monetary…
Q: Sales $1248000 Contribution margin 466560 Total direct fixed costs 405000 Total operating assets…
A: Formula: ROI = Net profit / Average Operating Assets.
Q: Please help with question B and C: B.) Another team member who is preparing the Budgeted Balance…
A: Cash Budget It is important for the business entity to prepare the cash budget which knows the…
Q: The president of Mission Inc. has been concerned about the growth in costs over the last several…
A: Total cost refers to the sum total of all the expenses born by a company while manufacturing its…
Q: Accounting Q/ Prepare a Bank Reconciliation Statement for XYZ company that has: Bank statement of…
A: Bank reconciliation statement means the statement in which the balance as per cash book and balance…
Q: 3. Machinery, computers, and human skills and abilities are part of an organization's a. Environment…
A: Every business runs for the purpose of generating profit. Investment of resources is important for…
Q: The following are Mueller Company’s cash flow activities: Prepare Mueller Company’s statement of…
A: Statement of cash flows forms a part of financial statements and is prepared with a view to…
Q: data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment…
A: Payback period is the term which is defined as the time period taken to recover the investment or…
Q: Sales Mix Analysis Delving further into the operations, another branch which is in the…
A: Calculation of Sales Required to earn Target Income of $ 135,000 Desired Sales = (Fixed Costs +…
Q: QUESTION 2 i. Describe the followings using relevant examples: a. Fixed Asset b. Current Assets c.…
A: The balance sheet represents the financial position of the business with assets, liabilities and…
Q: Sales 270000 Variable Expenses 180000 € Contribution Margin 90000 € Fixed Expenses 36000 € Net…
A: Formula: Margin of safety = Current sales - Break even sales
Q: 1. When an item of asset is transferred to and from the classification investment property, carried…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business…
A: Answer - Calculation of Estimated Ending Inventory at Cost - Particular AmountRetail AmountCost…
Q: HP Inc. uses the allowance method to estimate uncollectible accounts and has the following…
A: Bad debt Bad debts refer to the debts that are not to be collected by a business or an individual.…
Q: Rundle Home Maintenance Company earned operating income of $6,512,000 on operating assets of…
A: Return on investment ratio is calculated to the determine the net return earned on the investment…
Q: What is the total profit in the planning budget for the month?
A: Needs to plan flexible budget as per the requirement
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Formulas: Working Capital = Total Current assets - Total Current liabilities Current ratio = Total…
Q: A venture capital fund is considering investing in a startup that is seeking to raise $1,500,000 in…
A: In the context of the given question, we can see a venture capital fund is considering investing in…
Q: Mr Ventura engaged in a Milling business to serve the needs of farmers in the rural areas of…
A: Every business records the transactions undertaken by them during an accounting period. The initial…
Q: Maple Enterprises sells a single product with a selling price of $80 and variable costs per unit of…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions…
A: Trial balance: Trial balance is a record prepared to ascertain that debit balances are equivalent to…
Q: . Prepare the journal entry to record the sick pay earned in 2020. b. Prepare the journal entry to…
A: As per our protocol we provide solution to the one question or up to first three sub-parts only but…
Q: b) Another team member who is preparing the Budgeted Balance Sheet for the business for the same…
A: Needs to prepare cash budget in accordance with details available
Q: IRON ORE COST SHEET 1. Please, prepare the cost sheet, based on the following information a)…
A: Cost sheet- Standard cost sheets are cost cards that help determine the number of materials, labor,…
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: The question is related to Cash Budget. Cash Budget is summary of cash receipts and cash payments…
Q: s in his business
A: As per IRS rules you can depreciation apartment building used for business as under - Cost of…
Q: What are the assets needed by the jollibee for its daily operation?
A: Assets which are required for the day to day operations are the assets which are in the current…
Q: 31-Dec-22 2022 2021 Account Name Debit Credit Debit Credit Cash Accounts Receivable Supplies…
A: Formula: Net income =Revenues - Expenses.
Q: Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7 The…
A: The 3 for 1 stock split means that 3 shares would be issued against one share. The stock split do…
Q: Jim, a self-employed individual, takes an important customer to the hockey playoffs. Although the…
A: Answer:- Expenses definition:- An expenses can be defined as any thing that requires the payment of…
Q: Q1: Mater Pasta Inc. has projected a sales volume of $1,432 for the second year of a proposed…
A: Operating cash flow = [(Sales – Costs) × (1 – Tax rate)] + (Tax rate × Depreciation expense) where,…
Q: Trillian Ltd. is considering replacing a piece of old machinery. The machine has a book value of…
A: Lets understand the basics. When there is two alternatives available then management always choose…
Q: Karim Corporation requires a minimum $9,300 cash balance. Loans taken to meet this requirement cost…
A: Introduction Balances for last addition loan and ending cash balance:
Q: You bought a convertible bond issued by Spark Corp which has a conversion ratio of 25 common shares…
A: One of the source used by the business organization in order to raise the funds is issue of debt…
Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: (The following information opplies to the questions displayed below] Information on Kwon…
A: The cost of goods manufactured includes direct materials, direct labor and applied overhead cost.
Step by step
Solved in 2 steps
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
- 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.Calico Inc. purchased a patent on a new drug. The patent cost $21,000. The patent has a life of twenty years, but Calico only expects to be able to sell the drug for fifteen years. Calculate the amortization expense and record the journal for the first-year expense.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.
- Calico Inc. purchased a patent on a new drug it created. The patent cost $12,000. The patent has a life of twenty years, but Calico expects to be able to sell the drug for fifty years. Calculate the amortization expense and record the journal for the first years expense.During 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
- 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?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.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.