PA12. LO 11.5 Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $36,000 cash C. $31,000 cash
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- 12. Sand Corp exchanged equip used in its operations and pay $2,000 cash to Dake Corp for similiar equip used and its operations. The following is true: FMV of equip given up by Sand Corp is $13,500 (for Dake its $15,500) Cost of equip given up for Sand corp and Dake is $28,000; Accumulated Depr for Sand Corp is $19,000 (for Dake is $10,000) How many dollars is the basis of the new asset received by Sand if the exchange is thought to have No commercial substance? Thank you BrendaThe following are the information related to instalment sales made by Bimbo Co.:20X1 20X2Sales P200,000 P320,000Cost of Sales 160,000 224,000Gross profit rate 20% 30%Installment receivable, 20x1 90,000 30,000Installment receivable, 20x2 144,000During 20x2, Bimbo Co. has repossessed a property sold to a defaulted customer in 20x1 for P25,000. Prior to repossession, P5,000 were collected from the buyer. The repossessed property has an estimated resale price of P22,000. Reconditioning costs amount to P3,000. The normal profit margin is 30%.REQUIRED: 4. Compute the gain or loss on repossession ____________5. Compute the total realized gross profit in 20x2 ____________6. Net income recognized in 20x2 ____________11. Sand Corp exchanged equip used in its operations and pay $2,000 cash to Dake Corp for similiar equip used and its operations. The following is true: FMV of equip given up by Sand Corp is $13,500 (for Dake its $15,500) Cost of equip given up for Sand corp and Dake is $28,000; Accumulated Depr for Sand Corp is $19,000 (for Dake is $10,000) If there is No Commericial Substance for Sand Corp, the Basis of the new asset received in the exchange is higher or lower or the same as compared to the basis obtained by Sand if there is commercial substance? Lower? Higher? the same? Thank you Brenda
- 13. Sand Corp exchanged equip used in its operations and pay $2,000 cash to Dake Corp for similiar equip used and its operations. The following is true: FMV of equip given up by Sand Corp is $13,500 (for Dake its $15,500) Cost of equip given up for Sand corp and Dake is $28,000; Accumulated Depr for Sand Corp is $19,000 (for Dake is $10,000) What is the basis for the new asset received by Dake in dollars if there is commercial substance in the exchange? Thank you Brenda14. Sand Corp exchanged equip used in its operations and pay $2,000 cash to Dake Corp for similiar equip used and its operations. The following is true: FMV of equip given up by Sand Corp is $13,500 (for Dake its $15,500) Cost of equip given up for Sand corp and Dake is $28,000; Accumulated Depr for Sand Corp is $19,000 (for Dake is $10,000) If there is no commercial substance, is the basis for the new asset received by Dake higher, lower or the same as compared to when there was commercial substance? the same? higher? lower? Thank you brenda9. JK Corp traded some used Machinery with book value of $60,000 (accumulated depr $50,000) and a FMV of $100,000 for a machine with a FMV of $90,000. Received $10,000 cash. Assume the exchange, however did not result in a change of future cash flow for either party. What is the dollar amount basis of the new asset for JK Corp? Thank you brenda
- 4 - Our company has purchased a machine for 600.000 TL excluding 18% VAT. He paid 47.200 TL, including 18% VAT, for the assembly of the machine in question. Which of the following accounts is correct to use in the relevant accounting record ? a) 253 Plant Machinery and Equipment Hs. 600.000 TL (Borrower) B) 191 VAT Deductible 115.200 TL (Creditor) NS) 391 Calculated VAT Hs. 72.000 TL (Borrower) D) 253 Plant Machinery and Equipment Hs. 640.000 TL (Borrower) TO) 253 Plant Machinery and Equipment Hs. 755,200 TL (Borrower)26. Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of P12,000. The asset given up by Life Co. has a book value of P20,000. Cash of P4,000 is received by Life Co. What amount should Love Inc. record for the asset received? CHOICES: P20,000 P23,000 P19,000 P16,0001. ABC Company purchases a truck by paying $5000 cash and surrendering a piece of equipment with a book value of $12,000 and a fair value of $15,000. What is the cost of the truck acquired in this trade? A. $15,000 B. $20,000 C. $17,000 D. $10,000 2. Routine repair and maintenance costs should be A. capitalized and depreciated over the expected useful life. B. added to the cost of the asset but not depreciated. C. expensed in the period incurred. D. expensed in the next fiscal year. 3. As long as three conditions are present, interest is capitalized for the period. Which one of the following is not one of these three conditions? A. Expenditures for the asset have begun. B. Activities that are necessary to get the asset ready for its intended use are in progress. C. The asset is operational. D. Interest cost is being incurred.
- Garcia Co. owns equipment that costs $77,300, with accumulated depreciation of $42,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $34,500 cash C. $27,000 cash If an amount box does not require an entry, leave it blankGarcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garciasells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell theequipment for the following amounts:A. $47,000 cashB. $36,000 cashC. $31,000 cashLoss of 21300 is incurreed in selling (for cash) office qeuipment that cost 89000 and had accumulated depreciation of 22200, actual cash proceedsmust have been 1. 67700 2.88100 3.66800 4. 45500
